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CBK reports hike in credit facilities in July
Credit facilities by Kuwait-based banks to different sectors rose by 0.5% to KD24.4bn by the end of July, KUNA has reported. Personal credit facilities and loans took the lead at KD8.17bn, 33.4% of the total, while real estate followed at KD6.45bn. Third was the financial sector followed by the commerce sector, at KD2.77 and KD2.22bn, respectively.
Ahli bank introduces Mobile Ahli service
Kuwait-based Al-Ahli Bank, in collaboration with Al-Dar Contracting Company (K-Tel for telecommunications) has introduced its new Mobile Ahli service. The new service provides immediate access to international call centres, pre-paid internet subscription, pre-paid mobile services including Zain, Wataniya and Viva as well as other services, the lender said.
UAE Central Bank action may not spur lending until 2010
The UAE Central Bank's revamp of the banking panel that sets interbank rates and its other efforts to spur lending may not have any effect until next year, bankers and analysts said. The central bank last week restructured the rate-setting panel of banks in a bid to cut the cost of interbank lending as it eased rates on liquidity support facilities. The new panel, due to start work this month, adds four new local banks and drops two international lenders. The central bank also modified its capital adequacy formula for banks in a move intended to boost liquidity. But bankers say the central bank's measures merely address short-term liquidity issues and are unlikely to have an impact this year. (Mac Capital Advisors)
UAE personal loans slow down
Personal loans extended by UAE banks sharply slowed down in the first seven months of 2009 as spending appetites appear to have been hit by the global financial turmoil resulting in poor public confidence. From around Dhs207.2bn at the end of 2008, personal loans edged up by only 0.7% to Dhs208.8bn at the end of July, the Central Bank said. The loans had dipped to Dhs203.8bn by the end of February and continued their decline to reach Dhs201.7bn in April, before rebounding to Dhs205.2bn in May. The slackening growth was in tandem with a general slowdown in total loans, which grew by only around 1.4% to Dhs1,007 trillion at the end of July from around Dhs993.7bn at the end of 2008. This compares with a growth of nearly 7.5% in 2H08. (Mac Capital Advisors)
ADCB files $30m claim against Saad unit
Abu Dhabi Commercial Bank, the UAE's third largest lender by assets, has filed an $30m debt claim against a unit of troubled Saudi conglomerate Saad Group. The claim is the first against the troubled group by ADCB and more claims are likely to follow. ADCB, which has significant exposure to the group, filed the claim last week in London's High Court against Saad Trading, Contracting & Financial Services Company, part of the Saad Group owned by Maan Al-Sanea, the Saudi billionaire. (Mac Capital Advisors)
NBK Bahrain reports record H1 profits
National Bank of Kuwait-Kingdom of Bahrain, a branch of NBK group, has recorded a 55% increase in net profits for the first half of 2009, at $88.9m (BD33.5m), compared with $57.1m (BD21.6m) for the same period of 2008. NBK has received a Long Term rating of Aa2 from Moody's, AA- from Fitch Ratings, and A+ from Standard & Poor's.
NBK launches KD Ijara fund
The National Bank of Kuwait (NBK) has launched its Islamic KD Ijara Fund II, the 18th edition of the Islamic Ijara funds, Kuna has reported. The five-year fund will generate a monthly income of 6.25% throughout its term. It is denominated in Kuwaiti dinars and has a minimum investment of KD30,000, with multiples of KD10,000. Investors can also opt for two one-year extensions. The offer period closes on September 15.
NBAD launches $850m fixed-rate notes
National Bank of Abu Dhabi (NBAD) has successfully launched a US dollar 5-year transaction under its recently updated $5bn EMTN Programme, the company has said. Barclays Capital, BNP Paribas, National Bank of Abu Dhabi and the Royal Bank of Scotland plc acted as joint-bookrunners. The bank has further mentioned, the book has reached over $4bn and has allowed NBAD to price a $850m transaction at the tight end of the guidance.
NBAD plans to sell 5-year bonds
The National Bank of Abu Dhabi (NBAD) is planning to sell five-year bonds in dollars, Bloomberg has reported, citing a banker involved in the deal. The bond sale will be the first from a UAE-based lender this year. The report further cited that notes may be priced to yield about 190 to 200 basis points more than the benchmark mid-swap rate.
UAE Central Bank delays bank reserves target
The UAE Central Bank has delayed bank targets for increasing capital reserves as a buffer for surprise losses and changed the proportion of Tier 1 capital which banks are required to set aside. The rule, which will initially require banks to maintain a Tier 1 capital adequacy ratio of 7%, was added as a measure of "prudence and caution", the Central Bank said, as it strives to restore confidence among lenders and spur lending. A circular issued by the Central Bank said banks should work toward increasing their overall reserves to 11% by September 30 and that the Tier 1 component should be at least 7%. The previous deadline was on June 30. Under the latest guidelines, banks are also required to achieve an overall capital ratio of 12% of risk-weighted assets by June 30, 2010, of which at least 8% must be Tier 1, the circular said. (Mac Capital Advisors)
FGB tops efficiency ratios among UAE banks
According to a study on UAE banks by Credit Suisse, First Gulf Bank (FGB) with a cost to income ratio of 20.9% for 1H09 has the highest efficiency ratio amongst UAE banks. FGB has tightened its costs by Dhs36m or 12% quarter-on-quarter, making it one of the most efficient banks in the world. The cost-to-income ratio was 22.2% in 1Q09. FGB has maintained the efficiency ratio at the same level through 1H08 and 1H09 at around 20%.
Profits fall at Jordan's Housing Bank
Operational earnings for the first half of this year at Jordan's Housing Bank for Trade and Finance (HBTF) have fallen 4.7% to JD181.5m, compared to JD190.6m during the same period last year. Pre-tax profit dropped 51% to JD44m for January-June, while profit after tax fell by 57% to JD29.2m. However, assets totalled JD5.6bn, an increase of JD123m compared to last year. Client deposits also climbed, by JD255m to over JD4bn.
NCB issues Shariah credit card
Saudi Arabia's National Commercial Bank has launched Shariah-compliant Visa Platinum Credit Card. The card is available via two loyalty schemes, Bonus (Cash Back) and Amyali (air miles). Cardholders can decide which scheme they wish to take, the lender said.
Mashreq Bank offers debt advice
Dubai-based Mashreq Bank has launched 'Mashreq Assist', a debt counselling service to help customers restructure their outstanding cards, loans and facilities. The service will operate across all the bank's product lines, including loan facilities, cards, overdrafts, credit lines, mortgages and SME products, the lender said.
Boubyan Bank to raise capital by 50%
Kuwait-based Boubyan Bank has agreed to raise its capital by 50%, following the central bank's approval, KUNA has reported. The rise will be allocated to shareholders registered in bank records prior to the board meeting, Ibrahim Al-Qazi, the bank's board chairman said.
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