Positive third quarter results for Saudi banks

Monday, 20th October 2014 S&P 500 Shariah Dow Jones Islamic World MSCI World Islamic FTSE Shariah All World Russell - IdealRatings Islamic Global 1,656.41 2,711.57 1,105.92 1,951.46 1,736.35 ▲ 20.51(1.25%) ▲ 37.77 (1.41%) ▲ (1.38%) ▲ 29.40 (1.53%) ▲ 8.04 (0.47%) Positive third quarter results for Saudi banks Daily Cover SAUDI ARABIA: As results for the third quarter of the year roll in, Saudi banks offering Shariah compliant services have in the main seen positive results, announcing gains on both year-on-year results and results from the previous quarter. Saudi British Bank posted a net profit for SAR3.3 billion (US$878.81 million) for the first nine months of the year, a 17.81% increase on results for the same period in 2013, with net profit for the third quarter seeing a 25.21% gain from the third quarter of last year, at SAR1.06 billion (US$282.26 million). The bank is one of the few to have seen a decrease in quarter-on-quarter figures (-8.49%) whilst posting an increase in net profit for the January-September period. Saudi Hollandi Bank, which reported a net profit growth of 6.59% for the recent quarter is in the same position, recording a 3.84% drop in profit between the second and third quarter of the year. Citing the increase in operating expenses for the slight decrease, these are obviously offset by the rise in operating income, as marked by the 17.74% growth in the bank’s net profit for the last nine months reaching SAR1.36 billion (US$362.24 million). Riyad Bank, which announced net profit of SAR1.08 billion (US$286.80 million) for the quarter (a 7.82% increase on the previous year’s figures for the same period) has also seen a fall from second quarter net profits of 5.28%. Revealing the highest accretion in net profit so far, at 35.18% for the quarter and 25.05% for the first nine months of the year, Banque Saudi Fransi is followed by Bank Albilad reporting a third quarter net profit of SAR237.1 million (US$63.19 million) and SAR615.1 million (US$163.95 million) for past nine months, gains of 20.29% and 19.32% respectively. Two Saudi banks which have bucked the results trend are Al Rajhi Bank and Bank Aljazira, announcing respective losses of 3.2% and 75.13% for the third quarter. Bank Aljazira, which registered a net loss of SAR47 million (US$12.52 million), has attributed the steep decrease to an increase in operating expenses. Al Rajhi Bank, which recorded a 9.76% decline in net profit for the first nine months of the year, also saw a 14.73% reduction in net profit from the second quarter of the year which had been a high point for the bank, claiming 17.5% of the accumulated profits of Saudi banks for that quarter. Tunisia: An IFN Correspondent Report Tunisia looking to debut Sukuk by the end of 2014 A more than a year from the date of the approval of the Sukuk law by the National Constituent Assembly, Tunisia is looking to issue US$500 million in Sukuk within weeks, according to the prime minister Mehdi Jomaa. IFN Weekly Poll If the Islamic asset management industry were to have one dedicated ‘center’, which would be most suited? Assessing market sentiment over the past week, IFN takes a look at industry opinion on the most suitable jurisdiction that could potentially harbor Islamic funds. The Islamic asset management sector is perceived as a relatively fresh segment of the industry: and with funds currently spread across a wide range of jurisdictions both in the Islamic and developed world, IFN asks which is most preferable? NABILAH ANNUAR reports. This week's question: Will 2015 see Bahrain re-emerge as a key Islamic finance player? Today's IFN Alerts SAUDI ARABIA: Shariah board of National Commercial Bank approves IPO as permissible PAKISTAN: State Bank of Pakistan increases paid-up capital requirements for Islamic banking windows by 500% to PKR6 billion (US$58.25 million) GLOBAL: September Sukuk issuances surge 72% in September, reports KFH KUWAIT: Burgan Bank seeking approval to launch KWD21.6 million (US$74.68 million) rights issue UAE: Gulf Capital targets 10-12 companies with US$750 million private equity fund QATAR: Barwa Real Estate Company liquidates four subsidiaries due to weak profitability MALAYSIA: Profit payment on Al Bayan's RM1 billion (US$305.25 million) Sukuk Wakalah program due and payable on the 7th November SAUDI ARABIA: Al Alamiya for Cooperative Insurance Company announces results for the third quarter SAUDI ARABIA: Abdullah Abdul Mohsin Al-Khodari and Sons posts third quarter profit of SAR15 million (US$3.99 million) QATAR: Qatar International Islamic Bank records 10% year-on-year growth in net profit for the first nine months MALAYSIA: MARC assigns ratings to Pinnacle Tower's Islamic facilities worth RM450 million (US$137.36 million) collectively UAE: National Bank of Abu Dhabi's maintains 'AAA/P1' financial institutions ratings MALAYSIA: RAM places RHB Capital and Malaysia Building Society on positive watch, reinstates stable outlook on CIMB UK: BLME Holdings names Peter Bulkeley as new company secretary to the board SAUDI ARABIA: IDB's investment insurance arm appoints deputy CEO of International Islamic Trade Finance Corporation as its acting CEO TURKEY: Borsa Istanbul executive vice-president and Turkish central bank deputy executive director confirm participation for IFN Turkey Dialogue UAE: REDmoney partners with NASDAQ Dubai and AIMS to provide financial training courses in the UAE SRI LANKA: Governor of Maldives Monetary Authority to deliver address at the IFN Sri Lanka Forum 2014 this month GLOBAL: REDmoney confirms IFN Global Forum 2015 to be held on the 13thSeptember next year at Dubai TURKEY: Chairman of the Capital Markets Board of Turkey to deliver keynote address at the IFN Turkey Forum in November IFN Sri Lanka Forum 2014 21st October 2014 (Colombo) IFN Turkey Forum 2014 6th November 2014 (Istanbul) IFN Saudi Arabia Forum 2014 17th November 2014 (Riyadh) IFN Africa & Egypt Forum 2014 8th December 2014 (Cairo) IFN Indonesia Forum 2015 22nd April 2015 (Jakarta) IFN Asia Forum 2015 25th-26th May 2015 (Kuala Lumpur) IFN Europe Forum 2015 9th-10th June 2015 (Luxembourg) IFN Global Forum 2015 13th September 2015 (Dubai) IFN Kuwait Forum 2015 5th October 2015 (Kuwait City) IFN Iran Forum 2015 2015 (Tehran) Stress-testing for Banks and Financial Institutions 28th - 29th October 2014 (Kuala Lumpur) Derivatives & Options Masterclass 2nd - 4th November 2014 (Dubai) Asset and Liability Management 9th - 11th November 2014 (Doha) Advanced Sukuk & Islamic Securitization 10th - 12th November 2014 (Kuala Lumpur) Accounting & Reporting for Islamic Financial Products 10th - 12th November 2014 (Kuala Lumpur) Application of Islamic Principles in Shariah Fund Management 13th November 2014 (Kuala Lumpur) Islamic Treasury and Risk Management Products 17th - 19th November 2014 (Dubai) Effective Derivative Product Operations 17th - 19th November 2014 (Kuala Lumpur) Funds Transfer Pricing 1st - 3rd December 2014 (Kuala Lumpur) Takaful: Concepts, Products and Operation 8th - 10th December 2014 (Kuala Lumpur) Advanced Sukuk & Islamic Securitization 15th - 17th December 2014 (Dubai) Funds Transfer Pricing 15th - 17th December 2014 (Hong Kong) Fixed Income Products & Bond Markets 9th - 10th March 2015 (Kuala Lumpur)