TOP NEWS IN MIDDLE EASTERN AND AFRICAN FINANCIALS
* United Arab Emirates-based First Abu Dhabi Bank PJSC named Hana al-Rostamani group CEO, succeeding André Sayegh. Al-Rostamani, currently deputy group CEO and head of personal banking, would become the bank's first female CEO.
* Emirates NBD Bank PJSC's fourth-quarter 2020 net profit dropped 35% year over year to 1.32 billion UAE dirhams from 2.02 billion dirhams, while its full-year 2020 net profit attributable to equity holders of the group fell to 6.96 billion dirhams from 14.50 billion dirhams in 2019. Emirates NBD's board recommended a 2020 dividend of 40 fils per share.
* Mozambique's central bank raised its MIMO rate by 300 basis points to 13.25%, citing a substantial upward revision of the medium-term inflation forecast to reflect the continuing depreciation of the local currency and increased risks and uncertainty due to COVID-19 pandemic, among other things. The surprise decision is the first rate increase by any central bank in the world this year, Bloomberg News noted.
➤ UAE banks' 2021 outlook blunted by sector exposure – S&P
Sectors including real estate, hospitality and retail will likely remain under pressure for the next 12 months, which will result in weaker asset quality and higher credit losses for lenders.
➤ COVID-19 hits credit card business, costing banks nearly $780M in Southeast Asia
Declining credit card usage amid the COVID-19 downturn will not only disrupt a profitable business for Southeast Asian banks but will also set back their progress in retail banking.
BANKING
* National Bank of Kuwait SAKP posted a full-year 2020 net profit of 246.3 million dinars, a 38.6% decline from 401.3 million dinars in 2019. The bank's board proposed a cash dividend for the year of 20 fils per share, plus 5 bonus shares for every 100 shares currently held.
* Oman-based Bank Muscat SAOG proposed a 2020 dividend of 25 rial baisa per share plus 1 bonus share for every 10 shares presently held.
* Union Bank of Nigeria PLC dismissed a previous report purporting that its 50% owner, Atlas Mara Ltd., is weighing a plan to dispose of its stake, with the bank saying the "unsubstantiated report" was based merely on speculation.
* Capital Intelligence Ratings affirmed the long- and short-term foreign-currency ratings of Jordan-based InvestBank at B+/B, with a stable outlook on the long-term rating, among other ratings.
* Kenyan commercial banks want the central bank to cheaply but discreetly lend more money to fund their operations to avoid being viewed as weak by investors and depositors, Business Daily Africa reported, citing a central bank credit survey report.
* Tunisia's Banque Tunisienne de Solidarité named a new interim managing director, Khalifa Sboui, after the bank's head, Mohamed Kaaniche, retired, according to Financial Afrik.
FINANCIAL SERVICES
* The shareholders of Solidarity Saudi Takaful Company approved the merger offer of Aljazira Takaful Ta'awuni Co., Argaam reported. Aljazira Takaful will issue 12.07 million new shares in exchange for all of Solidarity Saudi's issued shares.
* Kuwait Finance & Investment Co. - KSC (Public) received regulatory approval to buy and sell no more than 10% of its shares for a period of six months.
* Kuwait-based Wethaq Takaful Insurance Co. KSCP formed its board of directors chaired by Abdulrahman al-Shahi, with Abdullah al-Hamidhi as vice chairman.
* Allianz Nigeria Insurance PLC shored up its authorized share capital to 18.5 billion naira from 10 billion naira, The Punch wrote. The transaction created 17 billion new ordinary shares.
POLICY AND REGULATION
* The Central Bank of the UAE kicked off the process of taking over the supervision of the country's insurance sector under a federal decree mandating the regulator merge with the UAE Insurance Authority, The National reported.
* Kenya's central bank maintained its main central bank rate at 7.00%, noting that the policy measures implemented since the onset of the coronavirus pandemic in March last year are taking effect. This marks the sixth straight time that the regulator held the rate, according to Reuters.
* Angola's central bank imposed fines on seven banks in the last quarter of 2020, a total of 71 million kwanzas, as well as five admonitions, Lusa wrote.
* Egyptian central bank Governor Tarek Amer said the regulator is planning to set up a digital platform for nonfinancial services for small businesses and the agriculture sector, Amwal Al Ghad reported.
INDUSTRY NEWS
* Shareholders of the European Bank for Reconstruction and Development approved the UAE's request to become a member of the U.K.-based multilateral lender.
* The IMF called on policymakers to maintain monetary and fiscal support to uphold an expected global economic recovery in 2021 as vaccines are rolled out to combat the coronavirus pandemic.
* Prime Minister Sylvestre Ilunga's government collapsed after lawmakers in the Democratic Republic of Congo yesterday approved a motion of censure against his administration, Bloomberg reported.
MARKETS
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Erin Tanchico, Abdelghani Henni, Pádraig Belton and Nelson Siqueira contributed to this report.
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