Abu Dhabi Islamic Bank Q2 net profit surges on strong revenue growth
Abu Dhabi Islamic Bank (ADIB) on Thursday reported a 68% year-on-year (YoY) rise in the second quarter net profit to 1.22 billion dirhams ($333.24 million) on solid revenue growth and strong deposit inflows, but warned of pressures of a rising rate environment.
Net revenue grew by 71% YoY to AED 1.50 billion for the three-month period ending June 30, 2023.
Total operating income rose 56% to AED 2.23 billion in the second quarter compared to AED 1.43 billion in the year-earlier period.
However, provision for impairment increased to AED 223 million, up 95% YoY.
The bank’s liquidity position was healthy and comfortably within regulatory requirements, with the advances to stable funding ratio at 78% and the eligible liquid asset ratio at 21.8%, the biggest Islamic bank in the emirate said in a statement on ADX.
Thursday 27 July 2023
Most Gulf markets fall following Fed rate hike; #Qatar gains | Reuters
Most Gulf markets fall following Fed rate hike; Qatar gains | Reuters
Most stock markets in the Gulf ended lower on Thursday, as regional central banks increased key interest rates following the U.S. Federal Reserve's move to raise rates by a quarter of a percentage point.
Oil and gas exporters in the Gulf tend to follow the Fed's rate move as most regional currencies are pegged to the U.S. dollar; only the Kuwaiti dinar is pegged to a basket of currencies, which includes the dollar.
Saudi Arabia's benchmark index (.TASI) fell 0.5%, weighed by a 2.3% fall in Dr Sulaiman Al-Habib Medical Services (4013.SE) and a 0.9% decrease in Al Rajhi Bank (1120.SE).
Dubai's main share index (.DFMGI) dropped 0.3%, with Emirates Central Cooling Systems (EMPOWER.DU) losing 2.1%.
However, the losses were limited by a 1.8% rise in top lender Emirates NBD (ENBD.DU) after it reported a 78% surge in second-quarter profit.
The Dubai bourse recorded some volatility after the Fed's rate hike. The main index could see some price corrections if traders move to secure their gains due to the uncertainty regarding monetary policy, said Daniel Takieddine, CEO MENA at BDSwiss.
"However, the market could remain on a strong footing thanks to strong fundamentals."
In Abu Dhabi, the index (.FTFADGI) eased 0.1%.
The Saudi central bank, known as SAMA, increased its repo rate to 6% and its reverse repo rate to 5.5%, both by 25 basis points, and the UAE said it would raise the base rate on its Overnight Deposit Facility to 5.40% from 5.15%, effective Thursday.
The Qatari index (.QSI), however, bucked the trend to close 1.2% higher, driven by a 4% jump in petrochemical maker Industries Qatar (IQCD.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX30) dropped 0.3%, as most of the stocks on the index were in negative territory including Eastern Co (EAST.CA), which was down 2.2%.
The Egyptian stock market remained under pressure, recording declining trading volumes while foreign investors continued to sell, said Takieddine.
Most stock markets in the Gulf ended lower on Thursday, as regional central banks increased key interest rates following the U.S. Federal Reserve's move to raise rates by a quarter of a percentage point.
Oil and gas exporters in the Gulf tend to follow the Fed's rate move as most regional currencies are pegged to the U.S. dollar; only the Kuwaiti dinar is pegged to a basket of currencies, which includes the dollar.
Saudi Arabia's benchmark index (.TASI) fell 0.5%, weighed by a 2.3% fall in Dr Sulaiman Al-Habib Medical Services (4013.SE) and a 0.9% decrease in Al Rajhi Bank (1120.SE).
Dubai's main share index (.DFMGI) dropped 0.3%, with Emirates Central Cooling Systems (EMPOWER.DU) losing 2.1%.
However, the losses were limited by a 1.8% rise in top lender Emirates NBD (ENBD.DU) after it reported a 78% surge in second-quarter profit.
The Dubai bourse recorded some volatility after the Fed's rate hike. The main index could see some price corrections if traders move to secure their gains due to the uncertainty regarding monetary policy, said Daniel Takieddine, CEO MENA at BDSwiss.
"However, the market could remain on a strong footing thanks to strong fundamentals."
In Abu Dhabi, the index (.FTFADGI) eased 0.1%.
The Saudi central bank, known as SAMA, increased its repo rate to 6% and its reverse repo rate to 5.5%, both by 25 basis points, and the UAE said it would raise the base rate on its Overnight Deposit Facility to 5.40% from 5.15%, effective Thursday.
The Qatari index (.QSI), however, bucked the trend to close 1.2% higher, driven by a 4% jump in petrochemical maker Industries Qatar (IQCD.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX30) dropped 0.3%, as most of the stocks on the index were in negative territory including Eastern Co (EAST.CA), which was down 2.2%.
The Egyptian stock market remained under pressure, recording declining trading volumes while foreign investors continued to sell, said Takieddine.
Emirates Steel Is Said to Walk Away From Thyssenkrupp Steel Deal - Bloomberg
Emirates Steel Is Said to Walk Away From Thyssenkrupp Steel Deal - Bloomberg
Emirates Steel Arkan is walking away from a potential investment in Thyssenkrupp AG’s steel arm, dealing a fresh blow to the German conglomerate’s plans to offload the struggling operations, people with knowledge of the matter said.
The state-backed Abu Dhabi company has stopped actively pursuing a deal due to concerns over pension liabilities and other complexities of the business, the people said. Emirates Steel was considered the most serious contender to buy a stake in the Thyssenkrupp unit.
Interest from India’s JSW Steel Ltd. has also waned, the people said, asking not to be identified because the information is private.
The development could hamper efforts by Thyssenkrupp’s new chief executive officer, Miguel Angel Lopez Borrego, to turn around the company. His predecessor had struggled to find a solution for the steel unit amid pushback from unions and volatile earnings.
Emirates Steel Arkan is walking away from a potential investment in Thyssenkrupp AG’s steel arm, dealing a fresh blow to the German conglomerate’s plans to offload the struggling operations, people with knowledge of the matter said.
The state-backed Abu Dhabi company has stopped actively pursuing a deal due to concerns over pension liabilities and other complexities of the business, the people said. Emirates Steel was considered the most serious contender to buy a stake in the Thyssenkrupp unit.
Interest from India’s JSW Steel Ltd. has also waned, the people said, asking not to be identified because the information is private.
The development could hamper efforts by Thyssenkrupp’s new chief executive officer, Miguel Angel Lopez Borrego, to turn around the company. His predecessor had struggled to find a solution for the steel unit amid pushback from unions and volatile earnings.
#Saudi wealth fund PIF to seek up to $5 billion in Oman investments | Markets – Gulf News
Saudi wealth fund PIF to seek up to $5 billion in Oman investments | Markets – Gulf News
Sovereign wealth funds of Saudi Arabia and Oman have agreed on Thursday to boost cooperation and explore investment opportunities, the Omani state news agency said, with up to $5 billion earmarked for potential Saudi investments in Oman.
Saudi’s Public Investment Fund (PIF) and the Oman Investment Authority (OIA) on Thursday signed a preliminary pact to identify investments in Oman under the Saudi Omani Investment Company, wholly owned by the PIF, in various sectors.
In October, PIF established five regional investment companies targeting investments of up to $24 billion as part of a strategy grow its assets under management and diversify Saudi Arabia’s revenue sources.
Sovereign wealth funds of Saudi Arabia and Oman have agreed on Thursday to boost cooperation and explore investment opportunities, the Omani state news agency said, with up to $5 billion earmarked for potential Saudi investments in Oman.
Saudi’s Public Investment Fund (PIF) and the Oman Investment Authority (OIA) on Thursday signed a preliminary pact to identify investments in Oman under the Saudi Omani Investment Company, wholly owned by the PIF, in various sectors.
In October, PIF established five regional investment companies targeting investments of up to $24 billion as part of a strategy grow its assets under management and diversify Saudi Arabia’s revenue sources.
#Qatar’s Doha Bank Q2 net profit falls 30% to $50mln
Qatar’s Doha Bank Q2 net profit falls 30% to $50mln
Qatar's Doha Bank reported a net profit of 183.4 million riyals ($50.37 million) in the second quarter of 2023, down 30%, compared to QAR 263.5 million in the same period last year.
The bank’s profit for the first half dropped 40% to QAR 392 million from QAR 665 million in the same period last year.
Net interest income was QAR 537 million, down from QAR 596 million a year ago, the bank said in a filing published on the Qatar Stock Exchange on Thursday.
Total assets reached QAR 93.0 billion, as net loans and advances stood at QR 55.8 billion as of 30 June 2023.
Customer deposits stood at QAR 44.1 billion as of 30 June 2023, while investment portfolio reached QAR 25.4 billion.
Qatar's Doha Bank reported a net profit of 183.4 million riyals ($50.37 million) in the second quarter of 2023, down 30%, compared to QAR 263.5 million in the same period last year.
The bank’s profit for the first half dropped 40% to QAR 392 million from QAR 665 million in the same period last year.
Net interest income was QAR 537 million, down from QAR 596 million a year ago, the bank said in a filing published on the Qatar Stock Exchange on Thursday.
Total assets reached QAR 93.0 billion, as net loans and advances stood at QR 55.8 billion as of 30 June 2023.
Customer deposits stood at QAR 44.1 billion as of 30 June 2023, while investment portfolio reached QAR 25.4 billion.
#Dubai lender Emirates NBD says Q2 net profit jumps to record 6.2 bln dirhams | Reuters
Dubai lender Emirates NBD says Q2 net profit jumps to record 6.2 bln dirhams | Reuters
Emirates NBD (ENBD.DU), Dubai's biggest lender by assets, said its second-quarter profit surged 78% to a record 6.2 billion dirhams ($1.69 billion) on higher margins, an improved deposit and loan mix, and substantial recoveries.
The bank, majority owned by the government of Dubai, also said its balance sheet crossed 800 billion dirhams for the first time.
Dubai, home to the world's tallest skyscraper and palm-shaped artificial islands, has become one of the world's fastest-growing cities, with a population of 3.6 million, according to the emirate's statistic centre.
Its property market has boomed after a swift post-pandemic economic rebound and relaxed residency rules.
The bank reported a record first-half profit of 12.3 billion dirhams, up 130% from the previous year.
Total gross loans stood at 479 billion dirhams at the end of June, up 5% year-to-date. The company's deposits increased 11% year-to-date to 556 billion dirhams as of June 30.
Emirates NBD (ENBD.DU), Dubai's biggest lender by assets, said its second-quarter profit surged 78% to a record 6.2 billion dirhams ($1.69 billion) on higher margins, an improved deposit and loan mix, and substantial recoveries.
The bank, majority owned by the government of Dubai, also said its balance sheet crossed 800 billion dirhams for the first time.
Dubai, home to the world's tallest skyscraper and palm-shaped artificial islands, has become one of the world's fastest-growing cities, with a population of 3.6 million, according to the emirate's statistic centre.
Its property market has boomed after a swift post-pandemic economic rebound and relaxed residency rules.
The bank reported a record first-half profit of 12.3 billion dirhams, up 130% from the previous year.
Total gross loans stood at 479 billion dirhams at the end of June, up 5% year-to-date. The company's deposits increased 11% year-to-date to 556 billion dirhams as of June 30.
Most Gulf markets gain on oil, corporate earnings; #Saudi falls | Reuters
Most Gulf markets gain on oil, corporate earnings; Saudi falls | Reuters
Most major stock markets in the Gulf rose in early trade on Thursday, supported by corporate earnings and rising oil prices, although the Saudi index bucked the trend to trade lower.
Dubai's main share index (.DFMGI) added 0.1%, with top lender Emirates NBD (ENBD.DU) gaining 1.2% after reporting a 78% surge in second-quarter profit.
The bank reported a net profit of 6.2 billion dirhams ($1.69 billion) on higher margins, an improved deposit and loan mix, and substantial recoveries.
In Abu Dhabi, the index (.FTFADGI) was up 0.1%.
Oil prices - a key catalyst for the Gulf's financial markets - climbed 1%, recouping losses from the previous session, as tight supply and expectations of stronger Chinese demand overrode concerns about an economic slowdown.
Separately, the central bank of the United Arab Emirates raised the base rate on its overnight deposit facility by 25 basis points to 5.40%, effective Thursday.
The Qatari benchmark (.QSI) climbed 0.4%, led by a 3% rise in petrochemical maker Industries Qatar (IQCD.QA).
However, Saudi Arabia's benchmark index (.TASI) eased 0.2%, weighed down by a 1.9% fall in Dr Sulaiman Al-Habib Medical Services (4013.SE) and a 0.8% decrease in Al Rajhi Bank (1120.SE).
On the flip side, Saudi Investment Bank (1030.SE) advanced more than 3% to a six-month high following a steep rise in quarterly profit.
Most major stock markets in the Gulf rose in early trade on Thursday, supported by corporate earnings and rising oil prices, although the Saudi index bucked the trend to trade lower.
Dubai's main share index (.DFMGI) added 0.1%, with top lender Emirates NBD (ENBD.DU) gaining 1.2% after reporting a 78% surge in second-quarter profit.
The bank reported a net profit of 6.2 billion dirhams ($1.69 billion) on higher margins, an improved deposit and loan mix, and substantial recoveries.
In Abu Dhabi, the index (.FTFADGI) was up 0.1%.
Oil prices - a key catalyst for the Gulf's financial markets - climbed 1%, recouping losses from the previous session, as tight supply and expectations of stronger Chinese demand overrode concerns about an economic slowdown.
Separately, the central bank of the United Arab Emirates raised the base rate on its overnight deposit facility by 25 basis points to 5.40%, effective Thursday.
The Qatari benchmark (.QSI) climbed 0.4%, led by a 3% rise in petrochemical maker Industries Qatar (IQCD.QA).
However, Saudi Arabia's benchmark index (.TASI) eased 0.2%, weighed down by a 1.9% fall in Dr Sulaiman Al-Habib Medical Services (4013.SE) and a 0.8% decrease in Al Rajhi Bank (1120.SE).
On the flip side, Saudi Investment Bank (1030.SE) advanced more than 3% to a six-month high following a steep rise in quarterly profit.