Latest news with #First Abu Dhabi Bank
Zawya
4 days ago
- Business
- Zawya
GCC banks optimistic on loan growth in 2025, report strong performance in Q2 - S&P
GCC banks remain optimistic about loan growth in the region for the remainder of 2025, driven by favourable interest rates, according to S&P Global Market Intelligence. In its outlook, the firm said the UAE, Saudi Arabia and Qatar markets are expected to reduce interest rates in step with US Federal Reserve in the second half of the year. Last week's US Fed decision to keep interest rates unchanged resulted in most GCC Central Banks opting to keep borrowing costs unchanged. The only exception was Kuwait, whose currency is not pegged to the US dollar. However, analysts anticipate a cut is coming in September, based on the underlying softness in the US labour market data in July. Sharp loan growth With borrowing costs remaining steady this year, S&P's Q2 data for the GCC revealed optimism in the market, with Saudi Arabia's Al Rajhi Bank recorded the sharpest loan growth among the five biggest banks in the region, increasing to 19.31% from 7.37% a year earlier. Domestic peer Saudi National Bank's (SNB) loan growth rose year on year to 12.21% from 10.25%. Banks in the UAE followed suit, with the country's largest lender, First Abu Dhabi Bank (FAB), reporting a year-on-year uptick in loan growth, from 6.34% to 10.71% in Q2. The bank also raised its full-year guidance to low double-digit growth from its previous guidance of single-digit growth. Meanwhile, the Dubai-based Emirates NBD Bank revised its own loan growth guidance to low double digits after reporting second-quarter loan growth of 14.28%. Qatar National Bank (QNB) was the other major lender that registered a loan growth of 9.38% and also upgraded its loan growth guidance to 7%-9% from 5%-7%. Net interest income rises As lending increased, GCC banks also reported a net interest income (NII) rise in the second quarter, with Saudi's Al Rajhi Bank reported the highest jump at 25% YoY to $1.95 billion. This, along with higher net financing and investment income and banking services fees, propelled its net profit for the quarter to $1.64 billion, an increase of 31% YoY, S&P said. QNB's NII climbed to $2.34 billion from the year-ago $2.12 billion, despite margin pressures due to the impact of high interest rates in its Turkish business. In its July earnings call, QNB's senior vice president for group financial consolidation, Durraiz Khan, said the bank expects its net interest margin (NIM) to recover if Turkey cuts its rates in the second half of the year as projected. GCC banks with exposures to Turkey can expect net monetary losses to lessen if the country's inflation continues to cool, Fitch Ratings said in a June report. Emirates NBD, which also operates in Turkey through its DenizBank AS unit, incurred a 22-basis-point decline in its second-quarter NIM to 3.36%. The bank expects its full-year NIM to be in the 3.3%–3.5% range with the anticipated recovery of DenizBank's margins. Emirates NBD's NII for the quarter rose roughly 6% year over year to $2.28 billion. The UAE's FAB, which achieved a record quarterly profit after booking $1.50 billion in the second quarter, up 29% from $1.16 billion a year ago, saw its NII marginally rise to $1.35 billion from the previous year's $1.34 billion. (Writing by Bindu Rai, editing by Brinda Darasha)
Gulf Business
5 days ago
- Business
- Gulf Business
Gulf banks post robust loan growth in Q2 amid easing regional rates
The largest banks in the Gulf Cooperation Council (GCC) region reported stronger loan growth in the second quarter of 2025 compared to a year ago, supported by lower regional interest rates and improved economic sentiment. Al Rajhi Banking & Investment Corp., based in Saudi Arabia, recorded the sharpest loan growth among the top five GCC lenders, with year-on-year expansion rising to 19.31 per cent, up from 7.37 per cent a year earlier. Saudi National Bank followed with loan growth accelerating to 12.21 per cent from 10.25 per cent in the same period last year. In the UAE, First Abu Dhabi Bank (FAB), the country's largest lender, saw loan growth climb to 10.71 per cent, compared to 6.34 per cent a year earlier. FAB also raised its full-year loan growth forecast to the low double digits, up from a previous single-digit outlook. Emirates NBD Bank similarly revised its loan growth forecast to the low double digits after reporting a 14.28 per cent increase in Q2. Qatar National Bank (QNB) posted loan growth of 9.38 per cent in Q2 and raised its guidance to 7 per cent–9 per cent, up from 5 per cent–7 per cent previously. 'Almost half of the growth came from Turkey,' said Durraiz Khan, senior vice president for group financial consolidation, during a July 14 earnings call. According to a July 10 outlook report by S&P Global Ratings, loan growth in Qatar, Saudi Arabia, and the UAE is expected to remain strong through the second half of 2025, in line with anticipated rate cuts from the US Federal Reserve, which the GCC nations are likely to mirror. The increase in lending activity also lifted net interest income (NII) across most major banks. Read: QNB's NII rose to $2.34bn from $2.12bn a year earlier, despite margin pressures from its Turkish operations. 'Deposits in Turkey reprice faster than loans,' said Khan, adding that QNB expects its net interest margin (NIM) to improve if Turkey lowers rates later this year. Emirates NBD, which operates in Turkey through its subsidiary DenizBank AS, reported a 22-basis-point decline in its Q2 NIM to 3.36 per cent. However, the bank expects its full-year margin to range between 3.3 per cent and 3.5 per cent, supported by a potential recovery in DenizBank's profitability. NII for the quarter reached approximately $2.28bn, marking a 6 per cent year-on-year increase. According to Fitch Ratings, GCC banks with Turkish exposure may benefit from reduced net monetary losses if inflation in Turkey continues to ease. Al Rajhi Bank led the peer group in NII performance, reporting a 25 per cent year-on-year increase to $1.95bn. Higher net financing, investment income, and banking services fees helped lift its Q2 net profit to $1.64bn, a 31 per cent increase compared to the same period last year. The entire report can be found here:
Zawya
23-07-2025
- Business
- Zawya
Mideast Stocks: Most Gulf stocks rebound on earnings, US-Japan trade deal
Most Gulf stocks rebounded on Wednesday, buoyed by corporate earnings announcements and optimism following U.S. President Donald Trump's trade deal with Japan, which raised hopes for additional agreements before an impending tariff deadline. Trump said on Tuesday that the U.S. and Japan had reached a trade deal that includes a 15% tariff on U.S. imports from Japan. It followed an agreement with the Philippines by which the U.S. will collect a 19% tariff rate on imports from there. While the increasing imposition of tariffs around the world poses risks to global economic growth and oil demand, the recent U.S.-Japan deal helped ease investor concerns and supported oil prices. Saudi Arabia's benchmark index advanced 1.3%, led by a 1.1% gain in Al Rajhi Bank and a 2.3% increase in Saudi National Bank, the country's largest lender by assets. Earlier this week, the duo reported a rise in quarterly earnings. The Saudi stock market may experience a solid rebound if earnings releases continue to be positive and external pressures diminish, said Milad Azar, market analyst at XTB MENA. "A potential trade deal with the European Union, with the August 1 deadline approaching, could also provide a boost." The Abu Dhabi index jumped 1.2%, with First Abu Dhabi Bank (FAB), the United Arab Emirates' largest lender, surging 5% - its biggest intraday gain in a month - after beating second-quarter profit estimates on strong revenue growth. Elsewhere, Bank of Sharjah soared 10%, a day after posting a sharp rise in half-yearly profit. Among other gainers, Space42 advanced 1% after securing a $695.5 million facility to fund next-generation UAE satellites. Dubai's main share index finished 1% higher, snapping a three-day losing streak, led by a 2.9% jump in top lender Emirates NBD (ENBD), as the bank is slated to report its quarterly earnings on Thursday. Qatar stock index edged 0.4% higher, touching a fresh two-and-a-half-year high, with most sectors closing in the green. Outside the Gulf, Egypt's blue-chip index rose 1%, continuing its ascent to record highs, with Commercial International Bank rising 1.5% following an increase in quarterly profit. SAUDI ARABIA jumped 1.3% to 10,984 ABU DHABI rose 1.2% to 10,296 DUBAI climbed 1% to 6,086 QATAR gained 0.4% to 11,186 EGYPT added 1% to 34,125 BAHRAIN increased 0.3% to 1,950 OMAN eased 0.3% to 4,765 KUWAIT inched up 0.2% to 9,296 (Reporting by Amna Mariyam and Ateeq Shariff in Bengaluru; Editing by Tasim Zahid)
Zawya
23-07-2025
- Business
- Zawya
Mideast Stocks: Gulf markets rebound on US-Japan trade deal, strong earnings
Gulf stocks rebounded on Wednesday following U.S. President Donald Trump's announcement of a trade deal with Japan, fuelling hopes of further agreements ahead of a fast-approaching tariff deadline, while positive corporate earnings also bolstered market sentiment. Trump said on Tuesday that the U.S. and Japan had struck a trade deal that includes a 15% tariff on U.S. imports from Japan. It followed an agreement with the Philippines by which the U.S. will collect a 19% tariff rate on imports from there. While the increasing imposition of tariffs around the world poses risks to global economic growth and oil demand, the recent U.S.-Japan deal helped ease investor concerns and supported oil prices. Saudi Arabia's benchmark index gained 0.5%, supported by energy stocks benefiting from stabilised oil prices. Oil behemoth Saudi Aramco advanced 0.7%. Elsewhere, Arab National Bank rose more than 2% after posting strong second-quarter results. The Abu Dhabi index jumped 0.9%, driven by robust earnings. First Abu Dhabi Bank, the UAE's largest lender, surged over 4% after beating second-quarter profit estimates on strong revenue growth, while Bank of Sharjah soared nearly 8%. Among other gainers, Space42 advanced around 2% after securing a $695.5 million facility to fund next-generation UAE satellites. Dubai's main share index added 0.3%, on course to snap a three-day losing streak, with nearly all sectors in positive territory as upbeat earnings lifted sentiment across the United Arab Emirates. Index heavyweight Salik climbed 1.5%. Qatar stock index edged up 0.2%, continuing to hover near a two-and-a-half-year high. (Reporting by Amna Mariyam and Ateeq Shariff in Bengaluru, editing by Ed Osmond)
bnok24
20-07-2025
- Business
- bnok24
Lime Consumer Finance Joins Egypt's FinTech Ecosystem with a Seamless Education-Centric App
the largest platform for education financing in Egypt and a wholly owned entity of First Abu Dhabi Bank Group in the UAE, has officially launched in the fintech ecosystem, with a specialised focus on educational financing as its first strategic entry point Licensed by Egypt's Financial Regulatory Authority (FRA), Lime offers structured, transparent, and accessible solutions for families in Egypt. While education marks the beginning, Lime's app is designed to expand into other essential life sectors, paving the way for broader financial empowerment Lime enables families to plan and pay for education across a holistic network of nurseries, schools, and universities. With over 30% of Egypt's population under the age of 15 (CAPMAS, 2025), education finance has become a natural priority. The app features installment options ranging from 6 to 12 months for amounts up to EGP 1 million, with digital onboarding and financing approvals granted within minutes, ensuring speed, convenience, and regulatory compliance Mr. Ahmed Mohsen, CEO and Managing Director of Lime Consumer Finance, stated: 'With an initial investment of USD 9.4 million, Lime enters the market at a time when Egypt is witnessing a parallel surge in private education demand and digital financial inclusion—fueled by a young population and supportive national policies He added: 'We're proud to be contributing to Egypt's Financial Inclusion Strategy by addressing a real need. Lime fills a critical gap by offering structured, transparent, and accessible financing solutions—and this is just the beginning. With a strong investment in technology, we aim to deliver a unique digital journey for customers, with approvals granted in minutes using a state-of-the-art credit decision engine On the expertise front, Lime's Board of Trustees brings together multidisciplinary expertise across key sectors essential to the company's mission: Ms. Mariam El Samny, Head of Consumer Banking at FABMISR; Mr. Refaat Zayed, Head of Retail Credit at FABMISR; Mr. Abdallah El Ebiary, Managing Director at Alvarez & Marsal's Sovereign Advisory Services; Mr. Mohamed El Kalla, CEO of CIRA Education; Ms. Magda Habib, CEO and Founder of Dawi Clinics and Mr. Omar Bassiouny, Founding Partner at Matouk Bassiouny and Group Head of Corporate and M&A Backed by the strength and experience of First Abu Dhabi Bank Group and guided by a multidisciplinary board, Lime is committed to driving financial inclusion and sustainable impact across Egypt's evolving fintech landscape. Education is Lime's starting point, but the app is designed for future expansion into other high-impact sectors Google News تابعونا على تابعونا على تطبيق نبض
