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MENA news through May 30

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MENA news through May 30

* Global sukuk issuance totaled $30 billion in the first quarter, up from $20.8 billion in the year-ago period, Khaleej Times reported. The increase was driven by Saudi Arabia, which recorded the highest growth in sukuk issuance to $6.5 billion at March-end from the year-ago $184.8 million.

MIDDLE EAST

* After a strong start to 2018, margins at the United Arab Emirates' biggest lenders will be under pressure from a value-added tax regime that is tilted against banks and new accounting rules that may push up impairment charges.

* Accounting firm KPMG is carrying out an internal review of its own audits of Dubai-based Abraaj Group Ltd. amid allegations of misuses funds, insiders told The National. Separately, Deutsche Bank AG plans to sell its 8.8% stake in Abraaj, sources told Reuters. Bisher Barazi and Matthew McGuire, CFO and COO of Abraaj Group's private equity unit, have left the firm.

* Deutsche Bank is also shutting down its equities research department in Dubai and has laid off eight analysts as part of the move, insiders told Bloomberg.

* Abu Dhabi National Takaful Co. PSC CEO Osama Abdeen said the company is looking for expansion opportunities through M&A, Al Bayan reported.

* National Commercial Bank named acting CEO Faisal Omar al-Sakkaf to the permanent role, effective June 1.

* Fitch Ratings placed certain ratings of Saudi British Bank and Alawwal Bank on review for upgrade after the two Saudi lenders reached a nonbinding merger agreement.

* The Saudi Arabian Monetary Authority banned Saudi Enaya Cooperative Insurance Co. from issuing or renewing insurance policies as of May 27 after the firm's accumulated losses amounted to about 74.5% of its capital, Argaam reported.

* Qatari ministers have taken measures to issue a draft law that will allow 100% foreign ownership of businesses in all economic sectors, Bloomberg reported, citing the official Qatar News Agency.

* Qatar Reinsurance Co. Ltd. is suspending underwriting new and renewal business for facultative lines in Dubai, a move somewhat driven by a lack of "rating adequacy" in the business, The Insurance Insider reported.

* The board of Alizz Islamic Bank SAOG agreed to explore a strategic collaboration with Oman Arab Bank SAOC that could lead to a merger of the two Omani banks.

* Al Ahli Bank of Kuwait KSCP is seeking potential acquisition opportunities with a particular preference for institutions in the Gulf Cooperation Council, Bloomberg reported, citing CEO Michel Accad.

* S&P Global Ratings said the overall impact of the new IFRS 9 accounting rules on the financial profiles of banks in the Gulf Cooperation Council appears to be manageable as it initially predicted in May 2017.

* The Israeli Antitrust Authority opposes the merger between Mizrahi Tefahot Bank Ltd. and Union Bank of Israel Ltd., or Bank Igud, saying the disappearance of Bank Igud would harm the "already limited competition" in the Israeli banking sector.

* Bank Hapoalim BM reported first-quarter net profit of 628 million Israeli shekels, down from 767 million shekels a year earlier.

* Bank Leumi le-Israel BM reported net income of 730 million shekels, up year over year from 622 million shekels, and announced plans to commence a share buyback of up to 700 million shekels by the end of March 2019.

* First International Bank of Israel Ltd. reported first-quarter net profit attributable to shareholders of 137 million Israeli shekels, down from 166 million shekels a year ago.

* The Bank of Israel left its key interest rate unchanged at 0.1% and said it would keep the rate low for as long as needed as inflation is still below the target despite a continued increase.

* Israel-based online trading platform operator Plus500 Ltd. intends to move trading in its ordinary shares to the London Stock Exchange's main market from the AIM sub-market.

* Switzerland-based Banque de Commerce et de Placements SA has halted all new transactions with Iran and is winding down its operations in the Middle Eastern country, Reuters wrote. India-based IndusInd Bank Ltd. and UCO Bank, meanwhile, asked exporters to close their financial dealings with Iran by Aug. 6.

NORTH AFRICA

* Fitch affirmed Tunisia's B+/B long- and short-term issuer default ratings and revised the outlook on the long-term ratings to negative from stable.

* The proposed sale of a controlling stake in Moroccan insurance broker Agma Lahlou-Tazi SA failed after offers were deemed inadequate, the Asia Insurance Review reported, citing Moroccan publication Médias24.

Henni Abdelghani contributed to this report.