Saudi National Bank strategy unaffected by hit to Credit Suisse investment | Reuters
Saudi National Bank <1180.SE>, the largest shareholder in Credit Suisse (CSGN.S), said on Monday its strategy will be unaffected by reduced valuation on its investment in the Swiss bank after its takeover by rival UBS (UBSG.S).
The Saudi lender, the kingdom's largest by assets, acquired almost 9.9% of Credit Suisse for 5.5 billion riyals ($1.46 billion) last November, but is now sitting on a loss of roughly $1.17 billion on its investment, Reuters calculations showed.
"Changes in the valuation of SNB's investment in Credit Suisse have no impact on SNB's growth plans and forward-looking 2023 guidance," Saudi National Bank said in a bourse filing on Monday.
The investment in Credit Suisse formed less than 0.5% of the Saudi lender's total assets of more than 945 billion riyals as of last December, and there is no expected impact on profitability, the statement said.
Swiss authorities had announced on Sunday that UBS would acquire its rival for $3.23 billion as part of a wider state-backed rescue plan.
Monday 20 March 2023
Mideast Stocks: Most Gulf bourses end lower as oil prices drop; Egypt rises
Mideast Stocks: Most Gulf bourses end lower as oil prices drop; Egypt rises
Most Gulf stock markets ended lower on Monday, as oil prices hit their lowest since 2021 on concerns that the banking woes would add to recession risks. Crude prices — a key catalyst for the Gulf's financial markets — slid 1.1% on Monday with Brent crude down to $72.16 at 1230 GMT.
Central banks' promises over the weekend to provide dollar liquidity could not calm investors worried about instability in the financial system.
The Qatari index slumped 1.3%, extending its losing streak into a seventh session with almost all sectors ending in red, led by financial and industrials. The region's largest lender Qatar National Bank fell 2.4% and index heavyweight banks Qatar Islamic Bank and Commercial Bank shed 3.2% and 2.2%, respectively.
In Abu Dhabi, the index declined 1.1%, dragged down by a 3.2% slump in conglomerate International Holding Company and a drop of 1.8% in Abu Dhabi National Energy. Abu Dhabi Islamic Bank and Abu Dhabi Commercial Bank lost 3.1% and 0.6%, respectively.
Most Gulf stock markets ended lower on Monday, as oil prices hit their lowest since 2021 on concerns that the banking woes would add to recession risks. Crude prices — a key catalyst for the Gulf's financial markets — slid 1.1% on Monday with Brent crude down to $72.16 at 1230 GMT.
Central banks' promises over the weekend to provide dollar liquidity could not calm investors worried about instability in the financial system.
The Qatari index slumped 1.3%, extending its losing streak into a seventh session with almost all sectors ending in red, led by financial and industrials. The region's largest lender Qatar National Bank fell 2.4% and index heavyweight banks Qatar Islamic Bank and Commercial Bank shed 3.2% and 2.2%, respectively.
In Abu Dhabi, the index declined 1.1%, dragged down by a 3.2% slump in conglomerate International Holding Company and a drop of 1.8% in Abu Dhabi National Energy. Abu Dhabi Islamic Bank and Abu Dhabi Commercial Bank lost 3.1% and 0.6%, respectively.
Dubai's benchmark index fell 0.2%, weighed down by losses in utilities, industrial and financial sectors. Real estate developer Emaar Development dropped 2.9% and cooling services provider Emirates Central Cooling lost 1.9%.
"GCC stock markets came under pressure as concerns around the western banking sector continue to increase and it could strongly impact oil traders' expectations and push prices down," said Daniel Takieddine, CEO MENA at BDSwiss.
The benchmark index in Saudi Arabia ended 0.8% higher, extending gains to a second session. The index recorded a surge in almost all sectors with Al Rajhi Bank up 1.4% and Saudi National Bank rising 3.9%.
The Kingdom's largest lender by assets, SNB said on Monday its growth strategy will be unaffected by the reduced valuation on its investment in Credit Suisse following the Swiss bank's takeover deal with UBS on Sunday.
Outside the Gulf, Egypt's blue-chip index rose 1.7%, snapping six session losses with all sectors in the positive territory. Commercial International Bank and E-Finance gained 1% and 6.1%, respectively. Separately, Egypt is targeting a GDP growth rate of 5% in its new fiscal year budget, a spokesperson for the Egyptian presidency said on Sunday.
"GCC stock markets came under pressure as concerns around the western banking sector continue to increase and it could strongly impact oil traders' expectations and push prices down," said Daniel Takieddine, CEO MENA at BDSwiss.
The benchmark index in Saudi Arabia ended 0.8% higher, extending gains to a second session. The index recorded a surge in almost all sectors with Al Rajhi Bank up 1.4% and Saudi National Bank rising 3.9%.
The Kingdom's largest lender by assets, SNB said on Monday its growth strategy will be unaffected by the reduced valuation on its investment in Credit Suisse following the Swiss bank's takeover deal with UBS on Sunday.
Outside the Gulf, Egypt's blue-chip index rose 1.7%, snapping six session losses with all sectors in the positive territory. Commercial International Bank and E-Finance gained 1% and 6.1%, respectively. Separately, Egypt is targeting a GDP growth rate of 5% in its new fiscal year budget, a spokesperson for the Egyptian presidency said on Sunday.
Credit Suisse’s Canary Wharf Office Lease Another Headache for #Qatar Wealth Fund - Bloomberg
Credit Suisse’s Canary Wharf Office Lease Another Headache for Qatar Wealth Fund - Bloomberg
The Qatar Investment Authority’s stake in Credit Suisse Group AG isn’t the sovereign wealth fund’s only source of pain following UBS Group AG’s cut-price acquisition. It is also the bank’s major landlord in London.
QIA directly owns 1 Cabot Square where Credit Suisse has a lease until 2034, as well as owning half of Canary Wharf Group, the landlord that owns and manages much of the rest of the east London financial district. While UBS will assume liability for that lease after buying its rival, the demise of Credit Suisse is another blow to the sovereign wealth fund and what were once the crown jewels of its real estate portfolio.
Representatives for QIA and Canary Wharf declined to comment.
QIA has previously sought to sell 1 Cabot Square, which it acquired for about £330 million ($402 million) pounds in 2012. It agreed initial terms to sell it to Korea’s KB Securities for £460 million in 2018, but that deal never completed.
UBS has outlined swinging cost cuts for Credit Suisse which are likely to result in severe job losses at its investment bank, much of which is based in 1 Cabot Square. Still, UBS has recently subleased some vacant space in its own London headquarters at 5 Broadgate, limiting its ability to absorb those that retain their jobs within its own office estate.
The Qatar Investment Authority’s stake in Credit Suisse Group AG isn’t the sovereign wealth fund’s only source of pain following UBS Group AG’s cut-price acquisition. It is also the bank’s major landlord in London.
QIA directly owns 1 Cabot Square where Credit Suisse has a lease until 2034, as well as owning half of Canary Wharf Group, the landlord that owns and manages much of the rest of the east London financial district. While UBS will assume liability for that lease after buying its rival, the demise of Credit Suisse is another blow to the sovereign wealth fund and what were once the crown jewels of its real estate portfolio.
Representatives for QIA and Canary Wharf declined to comment.
QIA has previously sought to sell 1 Cabot Square, which it acquired for about £330 million ($402 million) pounds in 2012. It agreed initial terms to sell it to Korea’s KB Securities for £460 million in 2018, but that deal never completed.
UBS has outlined swinging cost cuts for Credit Suisse which are likely to result in severe job losses at its investment bank, much of which is based in 1 Cabot Square. Still, UBS has recently subleased some vacant space in its own London headquarters at 5 Broadgate, limiting its ability to absorb those that retain their jobs within its own office estate.
Al Rajhi Raises Over $1.3 Billion Selling Off Mortgage Assets - Bloomberg
Al Rajhi Raises Over $1.3 Billion Selling Off Mortgage Assets - Bloomberg
Saudi Arabia’s second-biggest bank raised over 5 billion riyals ($1.3 billion) from the sale of some of its real estate loans to a state-backed finance company, in the largest deal of its kind so far in the country.
Al Rajhi Bank, the largest lender in the kingdom by assets after Saudi National Bank, sold a portfolio of real estate loans to the Saudi Real Estate Refinance Co., the state-run equivalent of Fannie Mae and Freddie Mac in the US, according to a statement. The deal is the largest of its kind in the country, the state-run company said in the statement.
SRC, as the Real Estate Refinance Co. is known, is expecting more banks to sell off parts of their mortgage book as they look to ease liquidity pressure that have pushed borrowing costs close to a record high.
Saudi Arabia’s mortgage market has ballooned over the past few years, but the rapid rise in home loans has stretched capacity to keep lending. Mortgage approvals by banks have slowed over the past year as banks struggled with tight liquidity and buyers faced soaring interest rates and rapidly rising home values.
Saudi Arabia’s second-biggest bank raised over 5 billion riyals ($1.3 billion) from the sale of some of its real estate loans to a state-backed finance company, in the largest deal of its kind so far in the country.
Al Rajhi Bank, the largest lender in the kingdom by assets after Saudi National Bank, sold a portfolio of real estate loans to the Saudi Real Estate Refinance Co., the state-run equivalent of Fannie Mae and Freddie Mac in the US, according to a statement. The deal is the largest of its kind in the country, the state-run company said in the statement.
SRC, as the Real Estate Refinance Co. is known, is expecting more banks to sell off parts of their mortgage book as they look to ease liquidity pressure that have pushed borrowing costs close to a record high.
Saudi Arabia’s mortgage market has ballooned over the past few years, but the rapid rise in home loans has stretched capacity to keep lending. Mortgage approvals by banks have slowed over the past year as banks struggled with tight liquidity and buyers faced soaring interest rates and rapidly rising home values.
Credit Suisse Deal Hands #Saudi National Bank $1 Billion Investment Loss - Bloomberg
Credit Suisse Deal Hands Saudi National Bank $1 Billion Investment Loss - Bloomberg
Credit Suisse Group AG’s Middle Eastern shareholders, which together own about a fifth of the Swiss bank, are among some of the biggest losers in the turmoil that culminated with UBS Group AG agreeing to acquire the troubled lender at a steep discount.
Saudi National Bank, the Swiss lender’s top shareholder, has seen the value of its investment plummet by about $1 billion in a matter of months. Credit Suisse’s long-term backer, the Qatar Investment Authority, has seen the value of its 6.8% holding crash after upping its stake as recently as January.
The 9.9% stake held by Saudi Arabia’s largest lender is now valued at about 304 million francs ($329 million) following the UBS offer, according to Bloomberg calculations. Saudi National Bank, which is 37% owned by the Public Investment Fund, invested 1.4 billion francs in Credit Suisse late last year. Shares in the Saudi lender have slumped by about a third over that period — wiping more than $25 billion off its market value.
Deep-pocketed Middle Eastern investors have been backing European banks such as Credit Suisse for many years, with varying degrees of success. Citigroup Inc. and Barclays Plc both tapped Abu Dhabi-based funds during the 2008 financial crisis, which both ended in acrimonious court cases.
Credit Suisse Group AG’s Middle Eastern shareholders, which together own about a fifth of the Swiss bank, are among some of the biggest losers in the turmoil that culminated with UBS Group AG agreeing to acquire the troubled lender at a steep discount.
Saudi National Bank, the Swiss lender’s top shareholder, has seen the value of its investment plummet by about $1 billion in a matter of months. Credit Suisse’s long-term backer, the Qatar Investment Authority, has seen the value of its 6.8% holding crash after upping its stake as recently as January.
The 9.9% stake held by Saudi Arabia’s largest lender is now valued at about 304 million francs ($329 million) following the UBS offer, according to Bloomberg calculations. Saudi National Bank, which is 37% owned by the Public Investment Fund, invested 1.4 billion francs in Credit Suisse late last year. Shares in the Saudi lender have slumped by about a third over that period — wiping more than $25 billion off its market value.
Deep-pocketed Middle Eastern investors have been backing European banks such as Credit Suisse for many years, with varying degrees of success. Citigroup Inc. and Barclays Plc both tapped Abu Dhabi-based funds during the 2008 financial crisis, which both ended in acrimonious court cases.
Mideast Stocks: Most Gulf bourses slide as oil prices slip
Mideast Stocks: Most Gulf bourses slide as oil prices slip
Most stock markets in the Gulf fell in early trade on Monday, tracking global peers and oil prices dragged down by concern risks in the global banking sector may cause a recession and cut fuel demand.
Crude prices - a catalyst for the Gulf's financial markets - slid 3.2% with Brent at $70.58 per barrel by 0715 GMT.
In Abu Dhabi, the benchmark stock index dropped 1.4%, sapped by a 2.6% decline in conglomerate International Holding and 1.4% loss in Alpha Dhabi.
Abu Dhabi's largest lender by assets, First Abu Dhabi Bank fell 0.6% and Abu Dhabi Commercial Bank shed 3.1%.
Dubai's benchmark stock index was down 0.5% in early trade, weighed by losses in industry and financial sectors, with tolls operator Salik falling 1.8%.
Dubai's real estate developers Deyaar Development and Emaar Development dropped 1.3% and 1.5% respectively.
The emirate's largest lender Emirates NBD lost 0.8%.
The Qatari Stock index fell 0.3%, with losses in most sectors, led by industry and finance.
The conglomerate Industries Qatar declined 1.1% and Qatar Aluminum lost 1.9%.
The region's largest bank Qatar National Bank and Commercial Bank dropped 0.3% and 1.8% respectively.
Saudi Arabia's benchmark stock index fell 0.5%, undermined by losses in finance, materials and energy sectors with world's largest Islamic bank by assets Al Rajhi Bank losing 0.6% and the Kingdom's largest commercial bank Saudi National Bank dropping 1.8%.
Saudi's ICT services provider Perfect Presentation For Commercial Services bucked the trend to rise 2.7% after it posted a 63% jump in full year net profit.
Most stock markets in the Gulf fell in early trade on Monday, tracking global peers and oil prices dragged down by concern risks in the global banking sector may cause a recession and cut fuel demand.
Crude prices - a catalyst for the Gulf's financial markets - slid 3.2% with Brent at $70.58 per barrel by 0715 GMT.
In Abu Dhabi, the benchmark stock index dropped 1.4%, sapped by a 2.6% decline in conglomerate International Holding and 1.4% loss in Alpha Dhabi.
Abu Dhabi's largest lender by assets, First Abu Dhabi Bank fell 0.6% and Abu Dhabi Commercial Bank shed 3.1%.
Dubai's benchmark stock index was down 0.5% in early trade, weighed by losses in industry and financial sectors, with tolls operator Salik falling 1.8%.
Dubai's real estate developers Deyaar Development and Emaar Development dropped 1.3% and 1.5% respectively.
The emirate's largest lender Emirates NBD lost 0.8%.
The Qatari Stock index fell 0.3%, with losses in most sectors, led by industry and finance.
The conglomerate Industries Qatar declined 1.1% and Qatar Aluminum lost 1.9%.
The region's largest bank Qatar National Bank and Commercial Bank dropped 0.3% and 1.8% respectively.
Saudi Arabia's benchmark stock index fell 0.5%, undermined by losses in finance, materials and energy sectors with world's largest Islamic bank by assets Al Rajhi Bank losing 0.6% and the Kingdom's largest commercial bank Saudi National Bank dropping 1.8%.
Saudi's ICT services provider Perfect Presentation For Commercial Services bucked the trend to rise 2.7% after it posted a 63% jump in full year net profit.
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