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General Insurance posts H1 earnings
Jordan-based International General Insurance Holdings has reported net earnings of $11.1m for the first half year ended June 30, 2009, compared to $6.4m in the same period of last year. Due to the group's policy of reducing exposure to certain catastrophe prone regions, gross written premium stood at $85.37m, compared to $88.68m in 2008, the group has said. Net earned premium had increased to $53m from $40m during the same period of 2008. Total assets had amounted to $454m and shareholders' equity at $173m, compared to $426m and $153m, respectively, as of December 31, 2008.
KFH-Turkey gets Shariah banking license for Germany
Islamic lender Kuwait Finance House (KFH) has said its Turkish unit has received the necessary licence from German authorities to open a financial services branch in Mannheim, Kuna has reported. The licence lets KFH-Turkey provide Shariah-compliant banking services in Germany. The Mannheim branch aims to provide financial services to a growing number of customers looking for Islamic products.
Capital Intelligence upholds Oman International ratings
The international credit rating agency, Capital Intelligence (CI) has affirmed foreign currency ratings of Oman International Bank's (OIB) at BBB long-term and A3 short-term, and the financial strength rating at BBB. The ratings reflect the bank's position in the local economy, its large retail customer franchise and the likelihood that the government will provide support in case of need, CI said. The bank's good liquidity, improving asset quality, good capital ratio and reasonably good earnings underscored the financial strength rating.
DED signs licensing deal with Dubai Bank
The UAE's Department of Economic Development (DED) has signed a co-operation agreement with Dubai Bank to facilitate electronic payment of trade licence fees. Under the agreement, Dubai Bank will present a detailed weekly report to DED covering all transactions and procedures that take place in the preceding week. The bank will also provide DED with electronic systems services for reviewing banking settlement.
BankMuscat to raise RO40m in CD auction
Oman-based BankMuscat is launching its eighth round of Certificates of Deposit (CDs) auction on September 15 in aim to raise RO40m, Times of Oman has reported. The CDs will be issued on September 20 in three categories with maturity of 12, 36 and 60 months with coupon of 3.75%, 4.75% and 5.50% respectively. The subscription is eligible for Omani and non-Omani investors, individuals, corporate bodies and institutions established in Oman and otherwise.
HSBC postpones Sukuk launch
HSBC bank has postponed the launch of its first fund investing in Shariah-compliant Sukuk, after investors were put off by a four-year lock-up period, the Gulf Daily News has reported. 'We decided to take some time to redesign the product based on feedback during the marketing phase,' an HSBC spokesperson has said. HSBC Amanah, the group's Islamic unit, had planned to launch the fund in the summer.
Bank Dhofar given BBB ratings
Capital Intelligence (CI), the international credit rating agency, has affirmed Oman's Bank Dhofar's foreign currency ratings at BBB long-term and A3 short-term and its financial strength rating at BBB. The ratings are based on the lender's sound asset quality and good profitability, CI has said. However, tight liquidity position and small balance sheet size are major constraining factors, the rating agency has noted.
Morgan Stanley MidEast head steps down
Georges Makhoul has resigned his post as the regional manager of Morgan Stanley' in the Middle East, Bloomberg has reported. Habib Achkar, head of the investment bank's Saudi Arabian unit will be replacing Makhoul, the lender has said.
Three Kuwaiti banks downgraded by Moody's
Moody's Investors Service said it has downgraded three Kuwaiti banks, reflecting the weakening credit conditions in the country. It downgraded bank financial strength rating (BFSR) of Commercial Bank of Kuwait (CBK) to C- from C and that of Al Ahli Bank of Kuwait (ABK) and Bank of Kuwait and the Middle East (BKME) to D+ from C-. CBK's long-term global local currency (GLC) and long-term foreign currency deposit ratings were also downgraded to A1 from Aa3, respectively. The bank's short-term GLC and short-term foreign currency deposit ratings were affirmed at Prime-1. All ratings now carry a negative outlook.
Bahrain to overhaul bank rules
The Central Bank of Bahrain plans to make major changes to its liquidity rules after troubles at two Saudi-linked banks raised concerns about the country's regulatory system, Reuters has reported. The proposed changes will require banks to hold liquid assets, submit to rigid checks and limit the so-called mismatches that could starve a bank of funding in stressful markets. The CBB in July assumed control of Saad Group's Awal Bank and The International Banking Corporation, a unit of Ahmad Hamad Algosaibi & Bros, citing a substantial shortfall in their assets compared with their liabilities.
Foreign banks to tighten lending to Saudi, says BNP
Foreign banks will now be more cautious in lending to Saudi family businesses in light of recent problems at Saad Group and Ahmad Hamad Algosaibi and Bros, an executive at France's BNP Paribas told Reuters. 'There will be an impact on the appetite of the banking sector to lend in Saudi Arabia,' Jean-Christophe Durand, chief executive of BNP Paribas in the Gulf region, told the news service.
Saudi Hollandi Bank rating cut by Capital Intelligence
International credit rating agency Capital Intelligence has lowered the financial strength rating of Saudi Hollandi Bank, the kingdom's fourth-smallest bank by total assets, from A to A-, Saudi Gazette has reported. The long-term foreign currency rating of A and the short-term foreign currency rating of A2 are unchanged, as is SHB's support rating of 2; a 'Stable' outlook is assigned to both the Foreign Currency and Financial Strength Ratings.
NBAD to launch exchange-traded fund
National Bank of Abu Dhabi plans to roll out the first Gulf Arab exchange-traded fund, which will track some of the region's 50 largest stocks, Bloomberg has reported. The fund will be listed on the Abu Dhabi Securities Exchange and 'will give investors convenient and easy access to a basket of stocks across the region,' Giyas Gokkent, National Bank's chief economist and co-head of its asset management unit, told the news service. NBAD manages about $1.5bn for investors.
Mortgage defaults to hurt UAE banks in Q3
UAE banks are expected to perform better in the third quarter but their net income could be stifled because of possible defaults by real estate debtors, analysts said yesterday. The country's banking sector, the largest in the Arab World, has already reeled under massive provisioning in the second quarter following exposure by some key banks to the troubled Saudi family businesses of Saad and Algosaibi. (MAC Capital Advisors)
CBK to monitor Investment Dar
The Central Bank of Kuwait has appointed a temporary monitor at Investment Dar beginning on September 8 to monitor the company's activities, KUNA has reported. The move was in response to complaints by Dar's shareholders and creditors that they have not received funds owed to them by the lender, CBK said. 'Chief among the monitor's duties will be to find out why Dar was not forthcoming with its 2008 financial statement as per required by CBK, and to examine minutely details of the company's restructuring plans,' the central bank is quoted as saying.
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