TOP NEWS IN MIDDLE EASTERN AND AFRICAN FINANCIALS
* Saudi Arabia's National Commercial Bank and Samba Financial Group said the combined entity resulting from their proposed merger will be named Saudi National Bank.
* Qatar could see more consolidation among local banks, particularly those with limited pricing power and weaker franchises, driven by pressure on profitability caused by the coronavirus pandemic, according to Fitch Ratings.
➤ Greek banks in 'complex but manageable' situation as loan moratoriums end
Some 14% of loans of Greek bank loans are under moratoriums, with repayments on pause as borrowers contend with the economic hit of the pandemic. The plight of Greek banks once this grace period ends will be "complex but manageable," experts say.
➤ Central banks must play a lead role in developing digital money, BIS says
Central banks should take the lead in developing digital currencies, according to the Bank for International Settlements. Meanwhile, the ECB is carrying out an experiment to see if a digital euro can run on existing payments infrastructure.
BANKING
* National Commercial Bank's recent sale of risky Additional Tier 1 bonds at a at record-low yield for the Gulf region has raised concerns that investors are mispricing risk amid a surge in global valuations, Bloomberg News wrote. The Saudi Arabian bank issued $1.25 billion of six-year perpetual AT1 sukuk at 3.5%.
* Arab Jordan Investment Bank, Safwa Islamic Bank and Capital Bank of Jordan said their boards approved proposals to distribute cash dividends equal to 10%, 6% and 12% of their paid-in capital, respectively, to shareholders.
* S&P Global Ratings said it expects Abu Dhabi Commercial Bank PJSC to set aside further significant provisions this year as the impact of the coronavirus crisis on the United Arab Emirates' economy gradually materializes, but added that the lender's capitalization will help it absorb additional losses.
* Separately, S&P Global Ratings said it expects the gradual lifting of extraordinary fiscal and monetary measures this year to reveal the true impact of the coronavirus pandemic and North African and Jordanian banks' asset quality.
* A Kenyan court dismissed an appeal by National Bank of Kenya Ltd. to stop its former employees from seizing its assets over 136 million shillings of unpaid pensions, Business Daily Africa reported.
* Major Kenyan banks are vying for a lucrative contract to serve as custodians of more than 31.2 billion shillings of civil servants' annual pension contributions, Business Daily Africa wrote.
* Amwal International Investment Co. KSCP said its last day of trading on Boursa Kuwait will be April 22, following approval of its decision to delist from the stock exchange.
* Togo-based Ecobank Transnational Inc. said unit Ecobank Nigeria Ltd. is seeking to raise capital through an issuance of $300 million of senior notes.
* FBN Holdings PLC appointed Seni Adetu and Juliet Anammah to its board as independent nonexecutive directors. The Nigerian lender also appointed Out Hughes a nonexecutive director.
* Mastafa Ismail Karam was appointed to the board of UAE-based Amlak Finance PJSC.
FINANCIAL SERVICES
* Aljazira Takaful Ta'awuni Co. CEO Sager Nadershah said the entity resulting from the company's proposed tie-up with fellow Saudi Arabian insurer Solidarity Saudi Takaful Co. will be among the five largest insurers in the country, Argaam reported.
* S&P Global Ratings said it expects Qatar Insurance Co. QSPC to receive its loan repayment following Pollen Street Capital Ltd.'s announcement that it will invest £200 million in U.K. insurer Markerstudy Group, which owed the Qatari company £190 million.
* Insurer Solidarity Bahrain BSC said its proposed merger with T'azur Co. BSC (c) is expected to be completed by year-end.
* Saudi Indian Co. for Cooperative Insurance Wafa Insurance announced the approval of a resolution to extend Ayed Asri Al Enazi's appointment as acting CEO for six months.
* UAE-based NymCard Payments Ltd. raised $7.6 million in a series A funding round, The National reported. The fundraising was led by local private equity firm Shorooq Partners.
* Johannesburg-listed investment holding company Brait SE said the redomiciliation of its registered office to Mauritius from Malta is now expected to close in May, citing delays caused by the coronavirus pandemic.
* Private equity firm Mediterrània Capital Partners Ltd. sold the remainder of its 49% stake in Morocco-based money transfer company Cash Plus SA, according to Financial Afrik.
* Bahraini private equity firm Investcorp Holdings BSC named Andrea Davis head of corporate strategy.
* Arab Moltaka Investments Co. Managing Director Khaled Abu Haif said the Egyptian firm is looking to enter new sectors and boost its assets under management to 6 billion pounds by the end of this year from 5 billion pounds in 2020, Arab Finance wrote, citing Alborsa.
* Egyptian financial services firm Digital Finance Holding launched a financial technology platform for tech-based financial services. The company said its initial subsidiaries will include venture debt-focused fund Camel Ventures, which is currently raising funds and is expected to launch in the second quarter.
POLICY AND REGULATION
* The Central Bank of Kenya is preparing a national payments strategy to address mounting risks of fraud or cybercrime on digital funds, Business Daily Africa reported, citing Treasury Cabinet Secretary Ukur Yatani.
* Algeria's central bank gave commercial banks a six-month extension to increase their regulatory capital to 20 billion dinars, after at least four banks missed the 2020-end deadline, Financial Afrik reported.
* The Bank of Namibia urged investors to be cautious when taking part in financial schemes after about 16 individuals claimed to have lost money in a foreign-currency trading scam, The Namibian wrote.
* Angola's central bank will launch the new 5,000 kwanza banknote Feb. 4, Jornal de Angola reported.
INDUSTRY NEWS
* Giving Israeli banks the option to defer loan payments by businesses and households has prevented many debt restructuring procedures amid the coronavirus pandemic, the Bank of Israel said in its financial stability report for the second half. The central bank also said credit suppliers' loan loss provisions have increased, while insurers' profitability was impacted during the crisis.
* Separately, Israel's central bank said the government will provide guarantees totaling $750 million to reinstate credit insurance, after some credit insurance firms ceased from providing insurance coverage to certain industries seriously affected by the coronavirus crisis.
* The Ethiopian government could enter debt negotiations with private lenders after reviewing liabilities with official creditors, Bloomberg News wrote, citing the finance ministry.
* Sudan will set up a $300 million sovereign fund aimed at protecting small investors as part of an agreement with the United Nations Industrial Development Organization, Reuters reported, citing the finance ministry.
* Israel and Kosovo have agreed to establish diplomatic ties, Reuters wrote.
MARKETS
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Deza Mones, Abdelghani Henni, Pádraig Belton and Mariana Aldano contributed to this report.
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