Abu Dhabi Commercial Bank Q2 net profit up 20%, beats estimate
Abu Dhabi Commercial Bank (ADCB), the UAE's third-biggest lender, posted a Q2 2024 net profit of 2.32 billion dirhams ($632 million), 20% higher year-on-year (YoY) on higher loan growth and lower impairment.
The results beat analysts’ mean estimate of AED 2.06 billion, according to LSEG data.
Net interest income rose 12% to AED 3.27 billion, the lender said in a regulatory disclosure on the Abu Dhabi Securities Exchange on Thursday.
Impairment charges were 21% lower YoY at AED 588 million. Operating income in Q2 was AED 4.71 billion, up 16% YoY.
Net credit was AED 332 billion, 10% higher YoY.
For H1 2024, the lender's net profit rose 17% YoY to AED 4.46 billion.
Based on its strong loan growth and credit pipeline, the bank has updated its guidance for FY 2024 to about 15% from the previous range of 8% to 10%.
Thursday 18 July 2024
Most Gulf markets gain on earnings, US rate-cut hopes | Reuters
Most Gulf markets gain on earnings, US rate-cut hopes | Reuters
Most stock markets in the Gulf ended higher on Thursday as second-quarter earnings picked up, while optimism over U.S. interest rate cuts also cheered investor sentiment.
Investors are fully pricing in a 25-basis-point rate cut in September after Federal Reserve officials said on Wednesday the U.S. central bank was "closer" to cutting interest rates, as inflation has been easing close to its 2% target.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab reversed early losses to close 0.3% higher, with Al Rajhi Bank (1120.SE), opens new tab rising 0.8% and the country's biggest lender Saudi National Bank (1180.SE), opens new tab increasing 1.6%.
The kingdom's crude oil exports rose in May, after slipping in April from a nine-month high hit in March, data from the Joint Organizations Data Initiative showed on Wednesday.
Dubai's main share index (.DFMGI), opens new tab advanced 0.9%, led by a 1.7% rise in top lender Emirates NBD (ENBD.DU), opens new tab, after reporting a 13% rise in second-quarter net profit beating analyst estimates.
In Abu Dhabi, the index (.FTFADGI), opens new tab gained 0.6%.
Post trading hours, Abu Dhabi Commercial Bank (ADCB.AD), opens new tab - which was suspended for trading - posted a 20% rise in second-quarter profit on Thursday, beating analysts' forecasts helped by higher net interest income and non-interest income.
Separately, Abu Dhabi National Hotels (ADNH.AD), opens new tab is considering an initial public offering for its catering business, ADNH catering, the company said in an undated statement on its website.
The Qatari benchmark (.QSI), opens new tab declined 1.2%, as most of its constituents were in the negative territory, including utility firm Qatar Electricity and Water Company (QEWC.QA), opens new tab which was down 2%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 1.1%, with El Sewedy Electric Co (SWDY.CA), opens new tab rising 5.3%.
Most stock markets in the Gulf ended higher on Thursday as second-quarter earnings picked up, while optimism over U.S. interest rate cuts also cheered investor sentiment.
Investors are fully pricing in a 25-basis-point rate cut in September after Federal Reserve officials said on Wednesday the U.S. central bank was "closer" to cutting interest rates, as inflation has been easing close to its 2% target.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab reversed early losses to close 0.3% higher, with Al Rajhi Bank (1120.SE), opens new tab rising 0.8% and the country's biggest lender Saudi National Bank (1180.SE), opens new tab increasing 1.6%.
The kingdom's crude oil exports rose in May, after slipping in April from a nine-month high hit in March, data from the Joint Organizations Data Initiative showed on Wednesday.
Dubai's main share index (.DFMGI), opens new tab advanced 0.9%, led by a 1.7% rise in top lender Emirates NBD (ENBD.DU), opens new tab, after reporting a 13% rise in second-quarter net profit beating analyst estimates.
In Abu Dhabi, the index (.FTFADGI), opens new tab gained 0.6%.
Post trading hours, Abu Dhabi Commercial Bank (ADCB.AD), opens new tab - which was suspended for trading - posted a 20% rise in second-quarter profit on Thursday, beating analysts' forecasts helped by higher net interest income and non-interest income.
Separately, Abu Dhabi National Hotels (ADNH.AD), opens new tab is considering an initial public offering for its catering business, ADNH catering, the company said in an undated statement on its website.
The Qatari benchmark (.QSI), opens new tab declined 1.2%, as most of its constituents were in the negative territory, including utility firm Qatar Electricity and Water Company (QEWC.QA), opens new tab which was down 2%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 1.1%, with El Sewedy Electric Co (SWDY.CA), opens new tab rising 5.3%.
London-listed Dar Global to launch Trump tower #Dubai in 2025 | Reuters
London-listed Dar Global to launch Trump tower Dubai in 2025 | Reuters
The Trump Organization, the company of former U.S. President Donald Trump, has teamed up with Saudi luxury international real estate developer Dar Global (DARD.L), opens new tab to build a Trump-branded tower in Dubai, the companies said on Thursday.
London-listed Dar Global is the international arm of Saudi Arabia's Dar Al Arkan Real Estate Development Company (4300.SE), opens new tab, which in 2022 signed a deal with the Trump Organization to use the brand for its $4 billion project in the Gulf state of Oman that includes a golf course, hotel and villas.
Trump enjoyed close ties with Gulf states during his tenure as president, including Saudi Arabia which has invested $2 billion with a firm of Jared Kushner, Trump's son-in-law and former aide, incorporated after Trump left office.
It will be the second Trump-branded project in the United Arab Emirates (UAE), a small but influential Gulf state that is a close security partner of the United States.
Dubai was quick to reopen after the COVID-19 pandemic. That, together with massive infrastructure spending, generous income tax policies and relaxed social and visa rules, lured thousands of foreigners - including Russians - and was a catalyst for its red-hot property market.
The Dubai Trump tower will add to a growing list of ultra-luxury branded towers in a booming real estate market in the emirate, such as a $1 billion Mercedes Benz (MBGn.DE), opens new tab project by developer Binghatti set to be completed in 2026.
The Trump tower in Dubai is set to launch next year, Dar Global said in the statement, which did not provide financial details of the deal.
The development, which will include a Trump Hotel and branded residential units, will not be owned or sold by The Trump Organization but the name and mark will be used under license, the statement added.
Earlier this month, Dar Global also announced it was working with the Trump Organization to develop a Trump Tower in the city of Jeddah in Saudi Arabia.
The Trump Organization, the company of former U.S. President Donald Trump, has teamed up with Saudi luxury international real estate developer Dar Global (DARD.L), opens new tab to build a Trump-branded tower in Dubai, the companies said on Thursday.
London-listed Dar Global is the international arm of Saudi Arabia's Dar Al Arkan Real Estate Development Company (4300.SE), opens new tab, which in 2022 signed a deal with the Trump Organization to use the brand for its $4 billion project in the Gulf state of Oman that includes a golf course, hotel and villas.
Trump enjoyed close ties with Gulf states during his tenure as president, including Saudi Arabia which has invested $2 billion with a firm of Jared Kushner, Trump's son-in-law and former aide, incorporated after Trump left office.
It will be the second Trump-branded project in the United Arab Emirates (UAE), a small but influential Gulf state that is a close security partner of the United States.
Dubai was quick to reopen after the COVID-19 pandemic. That, together with massive infrastructure spending, generous income tax policies and relaxed social and visa rules, lured thousands of foreigners - including Russians - and was a catalyst for its red-hot property market.
The Dubai Trump tower will add to a growing list of ultra-luxury branded towers in a booming real estate market in the emirate, such as a $1 billion Mercedes Benz (MBGn.DE), opens new tab project by developer Binghatti set to be completed in 2026.
The Trump tower in Dubai is set to launch next year, Dar Global said in the statement, which did not provide financial details of the deal.
The development, which will include a Trump Hotel and branded residential units, will not be owned or sold by The Trump Organization but the name and mark will be used under license, the statement added.
Earlier this month, Dar Global also announced it was working with the Trump Organization to develop a Trump Tower in the city of Jeddah in Saudi Arabia.
#Saudi bourse eases on profit-taking; Emirates NBD boosts #Dubai | Reuters
Saudi bourse eases on profit-taking; Emirates NBD boosts Dubai | Reuters
Saudi Arabia's stock market eased in early trade on Thursday, on course to snap a 10-day winning streak led by U.S. interest rate-cut optimism, although the Dubai index was buoyed by top lender Emirates NBD.
Investors are fully pricing in a 25 basis point rate cut in September after Federal Reserve officials said on Wednesday the U.S. central bank was "closer" to cutting interest rates, citing the progress in inflation easing close to its 2% target.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab eased 0.2%, with Al Rajhi Bank (1120.SE), opens new tab losing 0.5% and ACWA Power Company (2082.SE), opens new tab declining 0.8%.
In Qatar, the index (.QSI), opens new tab dropped 1%, as most of its constituents were in the negative territory including the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab, which retreated 2.5%.
Meanwhile, Wall Street's semiconductor index lost more than $500 billion in stock market value on Wednesday in its worst session since 2020 after a report said the United States was mulling tighter curbs on exports of advanced semiconductor technology to China.
Dubai's main share index (.DFMGI), opens new tab gained 0.6%, with Emirates NBD Bank (ENBD.DU), opens new tab rising 1.2%, after reporting a 13% rise in second-quarter net profit beating analyst estimates.
The Abu Dhabi index (.FTFADGI), opens new tab added 0.3%.
Crude prices - a catalyst for the Gulf's financial markets - extended gains from the previous session, buoyed by a bigger-than-expected decline last week in crude stocks in the United States, the world's largest oil consumer.
Saudi Arabia's stock market eased in early trade on Thursday, on course to snap a 10-day winning streak led by U.S. interest rate-cut optimism, although the Dubai index was buoyed by top lender Emirates NBD.
Investors are fully pricing in a 25 basis point rate cut in September after Federal Reserve officials said on Wednesday the U.S. central bank was "closer" to cutting interest rates, citing the progress in inflation easing close to its 2% target.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab eased 0.2%, with Al Rajhi Bank (1120.SE), opens new tab losing 0.5% and ACWA Power Company (2082.SE), opens new tab declining 0.8%.
In Qatar, the index (.QSI), opens new tab dropped 1%, as most of its constituents were in the negative territory including the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab, which retreated 2.5%.
Meanwhile, Wall Street's semiconductor index lost more than $500 billion in stock market value on Wednesday in its worst session since 2020 after a report said the United States was mulling tighter curbs on exports of advanced semiconductor technology to China.
Dubai's main share index (.DFMGI), opens new tab gained 0.6%, with Emirates NBD Bank (ENBD.DU), opens new tab rising 1.2%, after reporting a 13% rise in second-quarter net profit beating analyst estimates.
The Abu Dhabi index (.FTFADGI), opens new tab added 0.3%.
Crude prices - a catalyst for the Gulf's financial markets - extended gains from the previous session, buoyed by a bigger-than-expected decline last week in crude stocks in the United States, the world's largest oil consumer.
Asia Deals on Agenda for Omani Wealth Fund-Backed Port Operator - Bloomberg
Asia Deals on Agenda for Omani Wealth Fund-Backed Port Operator - Bloomberg
Asyad Group, backed by Oman’s sovereign wealth fund, is looking to buy or operate ports in southeast Asia, India and Africa as it seeks a bigger share of the world shipping market.
The company is in talks to manage a port in Malaysia, Chief Asset Management Officer Ahmed Al Bulushi said in an interview, without providing details. It’s also chasing deals elsewhere in the continent and some are likely to be concluded next year, he said. The company will finance these internally, he said.
The firm with $4 billion of assets is keen to branch out from its Middle East base to play a larger global role as economic growth expands demand for shipping. Supply of container vessels is likely to rise both this year and next, according to an organization whose members account for more than half of the world’s fleet. Asyad’s shipping division owns or operates 91 vessels that transport crude, LNG, chemical products and other supplies.
“There are discussions and we’re looking to manage international ports whether in the Asian market, India or Africa or any other opportunity that we think is reasonable,” Al Bulushi said. “By having a port we can leverage our assets like shipping lines and we can capitalize on access to that market and that area.”
Asyad wants only majority stakes or full ownership because that suits its “strategic direction,” he said.
The company operates three of Oman’s major ports. Sohar in the north is an equal venture with the Port of Rotterdam, while Antwerp Port is a partner in Duqm and Maersk in Salalah. The company also provides a drydock and logistical economic zones, and is close to awarding a contract to build roads, utilities, warehouses and offices for the country’s first airport free zone, Al Bulushi said.
Shipping IPO
The company’s unit Asyad Shipping Co. is planning to sell shares in an initial public offering by the end of this year, he said, confirming a Reuters report that the firm has selected banks as advisers.
The group’s revenue increased at compound annual growth rate of 21% last year compared with the previous 12 months, mainly driven by shipping, Al Bulushi said.
“We aim to reduce the contribution of shipping by 2027 to close to 60%” by growing “the other verticals and by focusing more on Asyad Logistics,” he said. The company’s target is to increase the share of the logistics unit to as much as 40% of overall revenue, he added.
“We’re trying to redraw the supply chain map in the area,” Al Bulushi said. “Our strategy is to reach everywhere in the world.”
Asyad Group, backed by Oman’s sovereign wealth fund, is looking to buy or operate ports in southeast Asia, India and Africa as it seeks a bigger share of the world shipping market.
The company is in talks to manage a port in Malaysia, Chief Asset Management Officer Ahmed Al Bulushi said in an interview, without providing details. It’s also chasing deals elsewhere in the continent and some are likely to be concluded next year, he said. The company will finance these internally, he said.
The firm with $4 billion of assets is keen to branch out from its Middle East base to play a larger global role as economic growth expands demand for shipping. Supply of container vessels is likely to rise both this year and next, according to an organization whose members account for more than half of the world’s fleet. Asyad’s shipping division owns or operates 91 vessels that transport crude, LNG, chemical products and other supplies.
“There are discussions and we’re looking to manage international ports whether in the Asian market, India or Africa or any other opportunity that we think is reasonable,” Al Bulushi said. “By having a port we can leverage our assets like shipping lines and we can capitalize on access to that market and that area.”
Asyad wants only majority stakes or full ownership because that suits its “strategic direction,” he said.
The company operates three of Oman’s major ports. Sohar in the north is an equal venture with the Port of Rotterdam, while Antwerp Port is a partner in Duqm and Maersk in Salalah. The company also provides a drydock and logistical economic zones, and is close to awarding a contract to build roads, utilities, warehouses and offices for the country’s first airport free zone, Al Bulushi said.
Shipping IPO
The company’s unit Asyad Shipping Co. is planning to sell shares in an initial public offering by the end of this year, he said, confirming a Reuters report that the firm has selected banks as advisers.
The group’s revenue increased at compound annual growth rate of 21% last year compared with the previous 12 months, mainly driven by shipping, Al Bulushi said.
“We aim to reduce the contribution of shipping by 2027 to close to 60%” by growing “the other verticals and by focusing more on Asyad Logistics,” he said. The company’s target is to increase the share of the logistics unit to as much as 40% of overall revenue, he added.
“We’re trying to redraw the supply chain map in the area,” Al Bulushi said. “Our strategy is to reach everywhere in the world.”
Amanat Holdings to list education platform in #Dubai | Reuters
Amanat Holdings to list education platform in Dubai | Reuters
Dubai-listed Amanat Holdings (AMANT.DU), opens new tab will proceed with an initial public offering (IPO) of its education platform on the local bourse, a filing showed on Thursday.
The group, which operates healthcare and education assets, said its board had approved the flotation and would engage with advisers.
The move adds to a flurry of IPOs in the Gulf in recent years as local governments try to deepen capital markets and attract investment. Companies in the Middle East and North Africa raised $3.6 billion in the first half, LSEG data showed.
The IPO follows that of other education firms such as Emirati schools operator Taaleem Holdings (TAALEEM.DU), opens new tab. Abu Dhabi-based Alef Education (ALEFEDT.AD), opens new tab made its debut last month.
Amanat Holdings said in May it was considering options for its education platform, including a listing.
The platform includes MDX, one of the overseas campuses of Middlesex University in London as well as HDC, which offers special education and care services in Saudi Arabia, and Nema Holding, which provides higher education in Abu Dhabi.
Dubai-listed Amanat Holdings (AMANT.DU), opens new tab will proceed with an initial public offering (IPO) of its education platform on the local bourse, a filing showed on Thursday.
The group, which operates healthcare and education assets, said its board had approved the flotation and would engage with advisers.
The move adds to a flurry of IPOs in the Gulf in recent years as local governments try to deepen capital markets and attract investment. Companies in the Middle East and North Africa raised $3.6 billion in the first half, LSEG data showed.
The IPO follows that of other education firms such as Emirati schools operator Taaleem Holdings (TAALEEM.DU), opens new tab. Abu Dhabi-based Alef Education (ALEFEDT.AD), opens new tab made its debut last month.
Amanat Holdings said in May it was considering options for its education platform, including a listing.
The platform includes MDX, one of the overseas campuses of Middlesex University in London as well as HDC, which offers special education and care services in Saudi Arabia, and Nema Holding, which provides higher education in Abu Dhabi.
#Dubai's Emirates NBD beats Q2 profit estimates | Reuters
Dubai's Emirates NBD beats Q2 profit estimates | Reuters
Emirates NBD (ENBD.DU), opens new tab, Dubai's biggest bank by assets, reported a 13% rise in second-quarter net profit on Thursday, beating estimates on the back of loan growth and the positive performance of unit Emirates Islamic (EIB.DU), opens new tab.
Net profit attributable to shareholders for the April-to-June period came in at 7.1 billion dirhams ($1.93 billion), up from 6.2 billion dirhams a year ago.
Analysts were expecting a profit of 5.265 billion dirhams, according to LSEG data.
The quarter was helped by the strongest-ever results in the bank's Islamic business, improving margins at its Turkey-based lender DenizBank and "significant recoveries bolstered by a buoyant economy," CEO Shayne Nelson said in a statement.
Banks in the United Arab Emirates, where Emirates NBD is among the largest, have benefited from the Gulf region's growth prospects as regional governments boost investment into developing non-oil sectors and diversifying income sources.
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 statistics centre.
Its property market has boomed amid a swift post-pandemic economic rebound, helped by relaxed residency rules.
Emirates NBD's total assets rose to 931 billion dirhams at the end of the second quarter, up 15% year-on-year, while lending was up 6% in the first half of the year.
Group net interest margin (NIM) improved to 3.65% in the second quarter from 3.52% in the previous quarter, as DenizBank's NIM grew on the back of favourable loan pricing and stable funding costs.
Emirates NBD (ENBD.DU), opens new tab, Dubai's biggest bank by assets, reported a 13% rise in second-quarter net profit on Thursday, beating estimates on the back of loan growth and the positive performance of unit Emirates Islamic (EIB.DU), opens new tab.
Net profit attributable to shareholders for the April-to-June period came in at 7.1 billion dirhams ($1.93 billion), up from 6.2 billion dirhams a year ago.
Analysts were expecting a profit of 5.265 billion dirhams, according to LSEG data.
The quarter was helped by the strongest-ever results in the bank's Islamic business, improving margins at its Turkey-based lender DenizBank and "significant recoveries bolstered by a buoyant economy," CEO Shayne Nelson said in a statement.
Banks in the United Arab Emirates, where Emirates NBD is among the largest, have benefited from the Gulf region's growth prospects as regional governments boost investment into developing non-oil sectors and diversifying income sources.
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 statistics centre.
Its property market has boomed amid a swift post-pandemic economic rebound, helped by relaxed residency rules.
Emirates NBD's total assets rose to 931 billion dirhams at the end of the second quarter, up 15% year-on-year, while lending was up 6% in the first half of the year.
Group net interest margin (NIM) improved to 3.65% in the second quarter from 3.52% in the previous quarter, as DenizBank's NIM grew on the back of favourable loan pricing and stable funding costs.
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