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Hapoalim, Leumi post Q1 profits; Kenya keeps rate cap; South Africa holds rate

* The IMF will begin incorporating Islamic finance into its financial sector assessments of certain countries next year, in a bid to encourage more consistency in applying regulations in the growing sector, Reuters wrote.

* Israel-based online trading platform Plus500 intends to list on the London Stock Exchange's main market and signaled that it was open to consolidation, the Financial Times reported. The company, shares in which have more than quadrupled in the last 18 months in part due to the popularity of its cryptocurrency derivatives, is currently listed on London's junior Aim market.

* Abu Dhabi state-owned Mubadala Investment Co., through unit Mubadala Petroleum LLC, acquired a 44% stake in Gazpromneft-Vostok LLC, a unit of Russian oil producer PJSC Gazprom Neft.

MIDDLE EAST AND NORTH AFRICA

* Bank Hapoalim BM posted a year-over-year decline in first-quarter net profit attributed to shareholders to 628 million Israeli shekels from 767 million shekels, as it booked 60 million shekels in provisions relating to a U.S. investigation into tax evasion.

* Bank Leumi le-Israel BM reported first-quarter unaudited net income attributed to shareholders of 730 million Israeli shekels, up from the audited 622 million shekels in the same period in 2017. The lender said it will begin its 700 million shekel share buyback program next week and complete it by the end of March 2019, subject to meeting a Tier 1 equity ratio of no less than 10.9%. The share buyback would be the first by an Israeli lender in more than three decades, Reuters noted.

* The Qatari government said it will push ahead with a draft legislation allowing full foreign ownership of companies operating in the country, news outlets including Reuters and Bloomberg News reported. The announcement comes days after the United Arab Emirates' cabinet unveiled plans to allow full foreign ownership in certain industries.

* Banks in Saudi Arabia saw a 7.5% year-over-year increase in first-quarter profits and an 18% quarter-over-quarter growth in profits for the period, owing to lower interest expenses and provisions, Arab News wrote, citing a report by rating agency Moody's.

* The UAE and Saudi Arabia signed a treaty designed to avoid double taxation on income and prevent tax evasion, Argaam reported.

* Accounting firm KPMG is carrying out an internal review of its audits of United Arab Emirates-based buyout firm Abraaj Group Ltd., which is facing allegations of misusing investors' money in its $1 billion healthcare fund, insiders told Bloomberg News.

* A potential merger between Oman Arab Bank SAOC and Alizz Islamic Bank SAOG would pave the way for the creation of a lender with assets of approximately $7 billion, Bloomberg News said. The two Omani lenders earlier agreed to discuss a strategic collaboration that could lead to a merger.

* Fitch Ratings downgraded National Bank of Oman SAOG's long- and short-term foreign-currency issuer default ratings to BB+/B from BBB-/F3, with a negative outlook on the long-term rating.

* A.M. Best revised the outlooks to negative from stable and affirmed the financial strength rating of B+ (Good) and the long-term issuer credit rating of "bbb-" of Arabia Insurance Company – Jordan.

* Al Ahli Bank of Kuwait KSCP seeks to launch new advisory services and boost is share of financing deals in the Gulf region, especially in the UAE, The National reported, citing CEO Michel Accad.

* The proposed sale of investment company Al Mada's 50.03% stake in Moroccan insurance broker Agma Lahlou-Tazi SA failed after offers were deemed inadequate. Prospective buyers were reportedly wary of the significant contributions of various Al Mada subsidiaries to the brokerage's annual turnover.

* Algeria's central bank is set to announce a major reshuffle in major government-owned banks over the next few weeks, El Khabar reported.

* Agriculture Bank of Egypt Chairman Elsayed Elkosayer said the bank aims to boost its loans portfolio to 28 billion Egyptian pounds by year-end from 25 billion pounds at the end of March, Daily News Egypt said.

EAST AND WEST AFRICA

* Kenya's National Treasury retained the country's controversial interest rate cap in a draft financial markets conduct bill for 2018 published yesterday, despite National Treasury Secretary Henry Rotich calling the caps "unsustainable" and pledging to reform or remove them. A source told Reuters that the Kenyan government had recognized that repealing the cap would prove to be difficult due to opposition from lawmakers who proposed it.

* Co-operative Bank of Kenya Ltd. reported first-quarter profit after tax of 3.4 billion shillings, up from 3.2 billion shillings in the year-ago period.

* Diamond Trust Bank Kenya Ltd. reported first-quarter group profit after tax and exceptional items of 1.80 billion shillings, up from 1.75 billion shillings in the same period in 2017.

* DIB Bank Kenya Ltd. named Dan Amaro head of retail and business banking and Susan Kitani head of credit, among other appointments, Business Daily Africa reported. Amaro joins the Dubai Islamic Bank PJSC unit from Stanbic Bank Kenya Ltd., while Kitani joins from Gulf African Bank Ltd.

* Paul Onwughalu, former head of operations at Union Bank of Nigeria PLC's head office, was handed a three-year prison sentence for his involvement in a 450 million Nigerian naira fraud scheme, Business Post Nigeria wrote.

* Burkina Faso's Wend Kuni Bank has a new head in Adama Sanfo, Confidentiel Afrique reported.

* In Mali, Alioune Traore took over the helm at Banque Islamique du Niger, Confidentiel Afrique said.

CENTRAL AND SOUTHERN AFRICA

* The South African Reserve Bank kept its repurchase rate unchanged at 6.5% per annum, saying risks to inflation outlook have titled to the upside.

* South African President Cyril Ramaphosa stressed his commitment to maintaining the independence of the country's central bank, as the government weighs options to nationalize the regulator, Bloomberg News reported. Ramaphosa also said he is keen on getting global pension funds to invest in the country.

* The South African Reserve Bank prefers to call digital currencies as "cyber-tokens" as they fall short of the requirements to be classified as money and a stable unit of value, Bloomberg News wrote, citing Deputy Governor François Groepe.

* South Africa's National Treasury made a request to the country's chief justice to instruct the South Africa Social Security Agency to release funds to Net 1 UEPS Technologies Inc. unit Cash Paymaster Services under conditions proposed by the government, Bloomberg News reported. The request comes after CPS said it would suffer losses and struggle to continue its operations amid a row over fees.

* South Africa's State Capture Commission of Inquiry, the panel investigating graft allegations during former President Jacob Zuma's tenure, will begin holding public hearings in August, Bloomberg News wrote.

* Standard Bank Group Ltd. said Richard Dunne has retired as a nonexecutive director of the group, and has also retired from the board of Standard Bank of South Africa Ltd.

* South Africa-based Lebashe Financial Services said it will boost its stake in RainFin (Pty.) Ltd., a peer-to-peer lender previously backed by Barclays PLC, by 24% to 75% for an undisclosed amount, Bloomberg News wrote.

* Angola's central bank decided to reduce banks' mandatory reserves in the kwanza to 19% from 21%, Angola Press said.

IN OTHER PARTS OF THE WORLD

Asia-Pacific: Ex-PICC Group president sentenced to prison; Fidelity Life bids for ANZ unit

Europe: Deutsche Bank to cut jobs in equities business; Turkish central bank hikes rate

Latin America: Accendo to complete Deutsche Bank México buyout in June; S&P downgrades Bolivia

North America: Morgan Stanley CEO targets $1 trillion in client assets; Coinbase buys Paradex

North America Insurance: Cyber claims soar as GDPR nears; reinsurance renewals to slump

Sheryl Obejera, Henni Abdelghani, Pádraig Belton and Mariana Aldano contributed to this report.

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