Saudi National Bank net profit up 12% in Q1 | Reuters
Saudi National Bank (SNB) (1180.SE) on Monday reported a nearly 12% increase in net profit for the first quarter from the same period a year ago on higher fees and gains from investments, the company said in a bourse statement.
The bank had earlier announced that the 70% fall in the carrying value of its investment in Swiss lender Credit Suisse (CSGN.S) in the first quarter, to 1.3 billion riyals ($346.63 million), would not affect profitability.
SNB, the kingdom's biggest bank by assets, reported a net profit of just over 5 billion riyals ($1.34 billion) in the three months to March 31, up from 4.5 billion riyals in the prior-year period.
That beat an analyst's estimate of 4.8 billion riyals, according to Refinitiv data.
Operating income rose almost 8% in the first quarter to 8.7 billion riyals, the statement said, driven by an increase in income from special commissions, and financing and investments, which were up almost 11% year on year.
The bank's overall balance sheet grew by 3% from the end of December 2022, and customer deposits rose 8% in the first quarter, although were only about 0.7% higher year on year.
Total provisions for expected credit and other losses rose to 493 million riyals in the first quarter, an increase of almost 28% from same period last year, but almost 200% higher than the previous quarter. It did not give a reason for the increase.
SNB said that while the decline in its Credit Suisse investment led to a decline in equity of 3.1 billion riyals during the first quarter, there would be no impact on its income statement, as per accounting standards.
The bank invested 5.5 billion riyals for a 9.88 percent stake in Credit Suisse last year.
Monday 1 May 2023
Most Gulf markets in red as Fed seen hiking rates | Reuters
Most Gulf markets in red as Fed seen hiking rates | Reuters
Most stock markets in the Gulf ended lower on Monday, weighed down by expectations the Federal Reserve will increase interest rates, although the Qatari bourse bucked the trend to finish higher.
The Fed is predicted to raise rates by another 25 basis points this week. The U.S. central bank has raised its policy rate by 475 basis points since March last year from the near-zero level to the current 4.75%-5.00% range.
Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to a direct impact from monetary tightening in the world's largest economy.
Saudi Arabia's benchmark index (.TASI) dropped 0.2%, with Al Rajhi Bank (1120.SE) losing 1% and petrochemical maker Saudi Basic Industries Corp (2010.SE) retreating 1.8%.
The Saudi stock market saw some price corrections after a strong performance for some time now. The market could also be weighed by mitigated earnings results, said Daniel Takieddine, CEO MENA at BDSwiss.
"Oil prices and the Fed's interest rates decision could also fuel a more cautious atmosphere this week."
Crude prices - a key catalyst for the Gulf's financial markets - fell as concern over the impact of the expected rise in U.S. rates and weaker Chinese manufacturing data outweighed support from OPEC+ supply cuts taking effect this month.
Banking fears have weighed on oil in recent weeks and in what is the third major U.S. institution to fail in two months, United States regulators said on Monday First Republic Bank has been seized and a deal agreed to sell the bank to JPMorgan.
Dubai's main share index (.DFMGI) dropped 0.2%, with top lender Emirates NBD (ENBD.DU) retreating 1.1%.
In Abu Dhabi, the index (.FTFADGI) concluded 0.9% lower, with First Abu Dhabi Bank (FAB.AD) (FAB) losing 1.3%.
FAB, the UAE's biggest lender by assets, on Thursday reported a 23% fall in first-quarter net profit, but said its loans and deposits grew, supported by momentum in the business and commercial environment.
The Qatari index (.QSI) added 0.9%, led by a 2.3% rise in the Gulf's biggest lender Qatar National Bank (.QNBK.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX30) declined 2%, with Commercial International Bank (COMI.CA) dropping 1.5%.
According to Takieddine, traders moved to secure their gains while international investors maintain their risk-averse position.
Most stock markets in the Gulf ended lower on Monday, weighed down by expectations the Federal Reserve will increase interest rates, although the Qatari bourse bucked the trend to finish higher.
The Fed is predicted to raise rates by another 25 basis points this week. The U.S. central bank has raised its policy rate by 475 basis points since March last year from the near-zero level to the current 4.75%-5.00% range.
Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to a direct impact from monetary tightening in the world's largest economy.
Saudi Arabia's benchmark index (.TASI) dropped 0.2%, with Al Rajhi Bank (1120.SE) losing 1% and petrochemical maker Saudi Basic Industries Corp (2010.SE) retreating 1.8%.
The Saudi stock market saw some price corrections after a strong performance for some time now. The market could also be weighed by mitigated earnings results, said Daniel Takieddine, CEO MENA at BDSwiss.
"Oil prices and the Fed's interest rates decision could also fuel a more cautious atmosphere this week."
Crude prices - a key catalyst for the Gulf's financial markets - fell as concern over the impact of the expected rise in U.S. rates and weaker Chinese manufacturing data outweighed support from OPEC+ supply cuts taking effect this month.
Banking fears have weighed on oil in recent weeks and in what is the third major U.S. institution to fail in two months, United States regulators said on Monday First Republic Bank has been seized and a deal agreed to sell the bank to JPMorgan.
Dubai's main share index (.DFMGI) dropped 0.2%, with top lender Emirates NBD (ENBD.DU) retreating 1.1%.
In Abu Dhabi, the index (.FTFADGI) concluded 0.9% lower, with First Abu Dhabi Bank (FAB.AD) (FAB) losing 1.3%.
FAB, the UAE's biggest lender by assets, on Thursday reported a 23% fall in first-quarter net profit, but said its loans and deposits grew, supported by momentum in the business and commercial environment.
The Qatari index (.QSI) added 0.9%, led by a 2.3% rise in the Gulf's biggest lender Qatar National Bank (.QNBK.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX30) declined 2%, with Commercial International Bank (COMI.CA) dropping 1.5%.
According to Takieddine, traders moved to secure their gains while international investors maintain their risk-averse position.
Aramco, PIF and China's Baosteel agree to set up steel complex in #SaudiArabia
Aramco, PIF and China's Baosteel agree to set up steel complex in Saudi Arabia
Saudi oil giant Aramco, Chinese conglomerate Baoshan Iron & Steel Co., Ltd. (Baosteel) and the Public Investment Fund (PIF), have signed a shareholders’ agreement to set up an integrated steel plate manufacturing complex in the kingdom.
The manufacturing complex is expected to be located in Ras al-Khair Industrial City, one of the four new Special Economic Zones recently announced by the Saudi Prince Mohammed bin Salman.
The first facility of its kind in the region, the project aims to enhance the domestic manufacturing sector through localizing the production of heavy steel plates, transferring knowledge and creating export opportunities, an Aramco statement said on Monday, without indicating the partners' levels of financial investment in the project.
Saudi Arabia would be the project’s primary target market, with plans to export to the GCC and broader MENA region.
The facility is expected to have a steel plate production capacity of up to 1.5 million tonnes per year. It would also be equipped with a natural gas-based direct reduced iron (DRI) furnace and an electric arc furnace, which aims to reduce CO2 emissions from the steel-making process by up to 60%, compared to a traditional blast furnace.
The investment aligns with PIF’s strategy to unlock the capabilities of promising sectors and strategically important industries that can drive the diversification of the local economy.
Saudi oil giant Aramco, Chinese conglomerate Baoshan Iron & Steel Co., Ltd. (Baosteel) and the Public Investment Fund (PIF), have signed a shareholders’ agreement to set up an integrated steel plate manufacturing complex in the kingdom.
The manufacturing complex is expected to be located in Ras al-Khair Industrial City, one of the four new Special Economic Zones recently announced by the Saudi Prince Mohammed bin Salman.
The first facility of its kind in the region, the project aims to enhance the domestic manufacturing sector through localizing the production of heavy steel plates, transferring knowledge and creating export opportunities, an Aramco statement said on Monday, without indicating the partners' levels of financial investment in the project.
Saudi Arabia would be the project’s primary target market, with plans to export to the GCC and broader MENA region.
The facility is expected to have a steel plate production capacity of up to 1.5 million tonnes per year. It would also be equipped with a natural gas-based direct reduced iron (DRI) furnace and an electric arc furnace, which aims to reduce CO2 emissions from the steel-making process by up to 60%, compared to a traditional blast furnace.
The investment aligns with PIF’s strategy to unlock the capabilities of promising sectors and strategically important industries that can drive the diversification of the local economy.
#Dubai crypto regulator awards first broker-dealer MVP operational license | Reuters
Dubai crypto regulator awards first broker-dealer MVP operational license | Reuters
BitOasis, a Middle East-focused crypto exchange based in the United Arab Emirates, has received the first broker-dealer minimum viable product operational license from Dubai's crypto regulator, the company said on Monday.
Dubai's Virtual Asset Regulatory Authority (VARA) was formed in March 2022 to regulate the emerging virtual asset sector in the emirate, as the United Arab Emirates pushes to become a global hub for the industry.
VARA licenses firms in a series of stages. BitOasis, which received provisional approval to start the licensing process in March 2022, is the first broker-dealer to complete the minimum viable product (MVP) stage.
No firm has yet been licensed under the full market product (FMP) stage, according to VARA's website.
BitOasis can now provide broker-dealer services to qualified retail and institutional investors from its headquarters in Dubai under the VARA's regulatory regime, the company said in a statement.
"The VARA ecosystem aims to strike a balance between value creation, risk mitigation and enhanced investment opportunities with consumer protection at its core," VARA CEO Henson Orser said.
BitOasis, a Middle East-focused crypto exchange based in the United Arab Emirates, has received the first broker-dealer minimum viable product operational license from Dubai's crypto regulator, the company said on Monday.
Dubai's Virtual Asset Regulatory Authority (VARA) was formed in March 2022 to regulate the emerging virtual asset sector in the emirate, as the United Arab Emirates pushes to become a global hub for the industry.
VARA licenses firms in a series of stages. BitOasis, which received provisional approval to start the licensing process in March 2022, is the first broker-dealer to complete the minimum viable product (MVP) stage.
No firm has yet been licensed under the full market product (FMP) stage, according to VARA's website.
BitOasis can now provide broker-dealer services to qualified retail and institutional investors from its headquarters in Dubai under the VARA's regulatory regime, the company said in a statement.
"The VARA ecosystem aims to strike a balance between value creation, risk mitigation and enhanced investment opportunities with consumer protection at its core," VARA CEO Henson Orser said.
Most Gulf markets fall as Fed seen hiking rates | Reuters
Most Gulf markets fall as Fed seen hiking rates | Reuters
Most major stock markets in the Gulf fell in early trade on Monday, dragged lower by expectations the Federal Reserve will increase interest rates, although the Qatari index bucked the trend.
The Fed is predicted to raise rates by another 25 basis points this week. The U.S. central bank has raised its policy rate by 475 basis points since March last year from the near-zero level to the current 4.75%-5.00% range.
Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to a direct impact from monetary tightening in the world's largest economy.
Dubai's main share index (.DFMGI) fell 0.1%, hit by a 1.1% fall in Emirates NBD Bank (ENBD.DU) and a 0.8% decrease in utility firm Dubai Electricity and Water Authority (DEWAA.DU).
In Abu Dhabi, the index (.FTFADGI) declined 0.6%, with lender First Abu Dhabi Bank (FAB.AD) (FAB) retreating 1.4%, on course to snap a five-day winning streak.
FAB, the UAE's biggest lender by assets, on Thursday reported a 23% fall in first-quarter net profit, but said its loans and deposits grew, supported by momentum in the business and commercial environment.
Saudi Arabia's benchmark index (.TASI) was flat in a choppy trade.
Oil prices - a catalyst for the Gulf's financial markets -fell as nervousness over the economic impact of any U.S. Federal Reserve interest rate rise and weaker Chinese manufacturing data outweighed the support of OPEC+ supply cuts taking effect this month.
In Qatar, the index (.QSI) bucked the trend to trade 0.5% higher, with telecoms firm Ooredoo (ORDS.QA) up more than 5%.
Most major stock markets in the Gulf fell in early trade on Monday, dragged lower by expectations the Federal Reserve will increase interest rates, although the Qatari index bucked the trend.
The Fed is predicted to raise rates by another 25 basis points this week. The U.S. central bank has raised its policy rate by 475 basis points since March last year from the near-zero level to the current 4.75%-5.00% range.
Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to a direct impact from monetary tightening in the world's largest economy.
Dubai's main share index (.DFMGI) fell 0.1%, hit by a 1.1% fall in Emirates NBD Bank (ENBD.DU) and a 0.8% decrease in utility firm Dubai Electricity and Water Authority (DEWAA.DU).
In Abu Dhabi, the index (.FTFADGI) declined 0.6%, with lender First Abu Dhabi Bank (FAB.AD) (FAB) retreating 1.4%, on course to snap a five-day winning streak.
FAB, the UAE's biggest lender by assets, on Thursday reported a 23% fall in first-quarter net profit, but said its loans and deposits grew, supported by momentum in the business and commercial environment.
Saudi Arabia's benchmark index (.TASI) was flat in a choppy trade.
Oil prices - a catalyst for the Gulf's financial markets -fell as nervousness over the economic impact of any U.S. Federal Reserve interest rate rise and weaker Chinese manufacturing data outweighed the support of OPEC+ supply cuts taking effect this month.
In Qatar, the index (.QSI) bucked the trend to trade 0.5% higher, with telecoms firm Ooredoo (ORDS.QA) up more than 5%.
#SaudiArabia's March Net Foreign Reserves Fall Despite Aramco Dividend - Bloomberg
Saudi Arabia's March Net Foreign Reserves Fall Despite Aramco Dividend - Bloomberg
Saudi Arabia’s net foreign assets fell to 1.572 trillion riyals ($419 billion) in March, even as oil giant Aramco increased its dividend the same month.
Foreign reserves fell from 1.625 trillion riyals the previous month, according to the central bank’s monthly report published on Sunday. They currently stand at their lowest level since July 2010, according to data compiled by Bloomberg.
“The drop in SAMA’s FX reserves came in parallel to a drop in government deposits at SAMA,” said Mohamed Abu Basha, head of macroeconomic research at Cairo-based investment bank EFG Hermes. That’s an “indication the government had heightened expenditure needs during the month.”
Saudi Arabia’s net foreign assets fell to 1.572 trillion riyals ($419 billion) in March, even as oil giant Aramco increased its dividend the same month.
Foreign reserves fell from 1.625 trillion riyals the previous month, according to the central bank’s monthly report published on Sunday. They currently stand at their lowest level since July 2010, according to data compiled by Bloomberg.
“The drop in SAMA’s FX reserves came in parallel to a drop in government deposits at SAMA,” said Mohamed Abu Basha, head of macroeconomic research at Cairo-based investment bank EFG Hermes. That’s an “indication the government had heightened expenditure needs during the month.”
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