MIDDLEEAST AND NORTH AFRICA
SaudiArabian banks see deposits drop: The liquidity of Saudi Arabia's lenders is expected to fallfurther as data from the central bank showed that deposits in the kingdom'sbanks dropped 0.5% in May, following a 0.7% decline in April, Gulf News says.
*Emirates NBD PMI, a monthly survey of business conditions, released findingsfor SaudiArabia, the UnitedArab Emirates and Egypt,CPI Financial reports. Saudi Arabiashowed growth in the non-oil private sector, which maintained a steady rate inJune. The UAE saw an overall improvement in business conditions due to higheroutput and new orders. Unlike Saudi Arabia and the UAE, Egypt saw a downturn inthe non-oil private sector and business conditions worsened for the ninth monthin a row due to declines in output, new orders and employment.
*Egyptian shares surged to their highest level in nearly a month on Saturday asspeculation rose that the country will devalue its currency, The National reports.Egypt's EGX 30 Index closed up 4.4%, the index's best single-day performancesince mid-March, and CommercialInternational Bank (Egypt) SAE closed up 7%.
*Banking expert Ezz El-Din Hassanein said Egypt's central bank is compelled toissue new bank notes every month as a result of low state resources and highexpenditure due to annual salary increases, compensations and pensions, Daily News Egypt reports. The central bank has beenissuing new notes since January 2011.
*Lebanon's business conditions continued to drop in June, reaching their lowestquarterly level since 2013, according to the latest BLOM Purchasing Manager'sIndex, Daily Star reports.
*Lebanon is expected to offer its 10 offshore blocks in the next offshore gaslicensing round to international oil companies, a source close to Parliamentspeaker Nabih Berri toldDaily Star.
*The Central Bank of Oman's Annual Report 2015 showed that total assets andliabilities of Islamic banks and windows amounted to 2.25 billion rials at Dec.31, 2015, constituting about 7.5% of the banking sector's assets and up 64.4%from a year ago. CPI Financial covers.
EASTAND WEST AFRICA
Société Ivoirienne de Banqueto sell 20% stake: IvoryCoast authorities said Attijariwafa Bank SA unit willsell 2 million shares ahead of its planned listing on the Bourse Régionale desValeurs Mobilières, or BRVM, West Africa's regional stock exchange, Reuters reports. Following the offer,Attijariwafa Bank will own a 75% stake in Société Ivoirienne de Banque, whileprivate investors and the government will hold 20% and 5%, respectively. The sale, which represents a 20% stake, is expected toraise 26.14 billion francs for the bank, according to FinancialAfrik.
*Tokunbo Martins, Central Bank of Nigeria's director of banking supervision,told Channels Television that "one or two other banks" failedliquidity tests but "they are not in a state of distress," Daily Post Nigeria writes. Meanwhile, Isaac Okoroafor,a spokesman for the central bank, reassured the public that individual lendersand the entire banking sector is healthy, News Ghana notes.
*Skye Bank Plc sharesplunged 8.4% to a three-month low on Friday, Reuters says. The Nigerian central bankreplaced the lender's top executives on Monday after it failed to meet capitalrequirements.
*The Central Bank of Kenya's latest quarterly economic review showed that the country's bankingsector saw a 51.5% increase in pretax profits to 38.4 billion shillings in thefirst quarter from 25.5 billion shillings in the quarter ended December 2015.Gross nonperforming loans, however, rose 15.8% over the same period to 170.6billion shillings.
*KCB Group Ltd.,formerly Kenya Commercial Bank, isconducting due diligence for a potential takeover of , about whichit must decide before the end of the month, JeuneAfrique says. Kenya's central bank placed Chase under temporaryadministration in April.
*Four Imperial BankLtd. clientsplan to sue the collapsed lender's directors for damages for the loss ofdeposits due to alleged willful negligence and breach of fiduciary duties thatled to the bank's closure, accordingtoThe Star.
*Ghanaian First Atlantic Bank Ltd. named Odun Odunfa CEO, replacing GabrielEdgal, Business Ghana reports. Odunfa was previously CEOand managing director at Kedari Capital Ltd. and a member of First AtlanticBank's board.
CENTRALAND SOUTHERN AFRICA
Moody'scuts Mozambique:Moody's on Friday downgraded Mozambique's issuer and senior unsecured debtratings to Caa3 from Caa1. The outlook is negative, reflecting risinglitigation risks that could result in government defaults beyond debtguarantees to other classes of debt, with potentially large losses forcreditors. Público covers.
* SouthAfrica is exposed to capital outflows following Brexit, Moody's said. "Thecurrent deficit facing the country now makes it vulnerable to short-termcapital movements, in a context marked by changes in risk perception," AgenceEcofin citesMoody's Vice President Zuzana Brixiova as saying.
*Zimbabwean lenders are further tightening withdrawals, lowering the cap to aslow as $50 and $100 per day as demand for cash continues to increase despitethe reduction in bank charges on electronic transactions, The Standard writes.
*Managing Director Charles Kimei told reporters on Thursday that will quicklyadjust its tariffs to match operational costs after the Tanzanian governmentpassed into law an 18% value-added tax on transactions by lenders and otherfinancial firms, The Exchange writes.
* Banque de l'Habitatdu Gabon, which has been under provisional administration since November, maybe recapitalized with 72 billion CFA francs by Benin insurer African InsuranceSA, which is currently conducting due diligence, Agence Ecofin reports.
* Novo Jornal writes that London-based privateequity fund Gemcorp is negotiating a new loan to the Angolan government,estimated at about $500 million, as the country faces a severe foreign-currency shortage.
*Nedbank Group Ltd.suspended senior employee Masotsha Mngadi due to his involvement in a fund-raisingtransaction between BnP Capital and South African Airways, which has beencaught in a refinancing scandal, South Africa's Sunday Times reports.
INOTHER PARTS OF THE WORLD
Asia-Pacific: Cathay General to acquire Bank SinoPac's US biz; Japan's Abe winsupper house poll
XanaKakoty, Sarah Raslan, Pádraig Belton and Mariana Aldano contributed to this report.
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