ADCB posts 14% rise in Q2 net profit

ADCB is optimistic about the turnaround of hospital operator NMC. (Supplied)
1 / 2
ADCB is optimistic about the turnaround of hospital operator NMC. (Supplied)
ADCB posts 14% rise in Q2 net profit
2 / 2
Abu Dhabi-based ADCB posted a 25 percent drop in net profit last year as it booked significantly higher provisions for NMC. (Supplied)
Short Url
Updated 19 July 2021

ADCB posts 14% rise in Q2 net profit

ADCB is optimistic about the turnaround of hospital operator NMC. (Supplied)
  • ADCB posted a 25 percent drop in net profit last year as it booked significantly higher provisions for NMC

DUBAI: Abu Dhabi Commercial Bank (ADCB), UAE’s third-biggest lender, reported a jump in second quarter net profit on Sunday and said it was optimistic about the turnaround of troubled hospital operator NMC, to which it was heavily exposed.
Net profit between April and June amounted to AED1.4 billion ($381.22 million), a 14 percent increase year-on-year and a 25 percent increase quarter-on-quarter.
“The growth in net profit is a result of the increase in a diversified revenue stream, disciplined cost control and a prudent approach to risk management,” chairman Khaldoon Al-Mubarak said in a statement.
ADCB posted a 25 percent drop in net profit last year as it booked significantly higher provisions for NMC, which went into administration last year after months of turmoil following questions over its financial reporting and the discovery of undisclosed debt.
ADCB had nearly $1 billion in lending exposure to the group, which is set to soon obtain creditor approval for a reorganization of the business.
“The bank is confident that the provisions it has recorded for NMC are sufficient and appropriate,” CEO Ala’a Eraiqat said.
ADCB was among a group of lenders which last year provided a $325 million facility to fund NMC’s administration and pave the way for restructuring.

 


Nasdaq Inc. to shift to Amazon cloud in 2022

Nasdaq Inc. to shift to Amazon cloud in 2022
Updated 10 sec ago

Nasdaq Inc. to shift to Amazon cloud in 2022

Nasdaq Inc. to shift to Amazon cloud in 2022

RIYADH: Nasdaq Inc., the multinational financial services corporation that owns and operates three stock exchanges in the US, plans to switch over to Amazon Web Services cloud to reduce costs, Bloomberg reported.

The initiative will involve moving massive amounts of the exchange’s data to the third-party cloud-based service, outsourcing storage and processing capabilities from AWS Outposts.

The migration will take place in phases. The exchange is expected to kickoff cloud trading next year, beginning with Nasdaq MRX, with a long-term plan to host over 25 markets by 2030.

 “The roll-out will happen over a multi-step testing period to ensure existing Nasdaq customers are comfortable with the transition,” Tal Cohen, executive vice president and head of North American markets at NYSE, stated.

 Earlier this month, CME Group Inc. and Alphabet Inc.’s Google struck a deal to move and start trading derivatives data on Google Cloud. 


Qatar Air opts for Boeing freighter amid Airbus paint dispute 

Qatar Air opts for Boeing freighter amid Airbus paint dispute 
Updated 3 min 39 sec ago

Qatar Air opts for Boeing freighter amid Airbus paint dispute 

Qatar Air opts for Boeing freighter amid Airbus paint dispute 

RIYADH: Qatar Airways has placed an order with Boeing for nearly 50 freighter planes amid its dispute with Airbus, Bloomberg reported citing the chief executive officer of the Gulf carrier. 

Akbar Al-Baker is concerned with paint and surface flaws on Airbus’s A350 cargo jets, as the aircraft suggested using copper foil as a lightning-conductor on the fuselage which could require it seeking new regulatory approvals. 

“When we even change the armrests of our seats it has to be recertified,” Bloomberg reported citing Al-Baker. 

The problems of Airbus’s A0350 cargo jets surface finish come as the aerospace company seeks to gather buyers for the freighter version. 

Earlier this week, Airbus spokesman said that the company is working on the paint issue with the European Union Aviation Safety Agency. 

Qatar Airlines is ranked as the biggest cargo carrier among passenger airlines. 


Saudi Arabia may raise January oil prices to Asia

Saudi Arabia may raise January oil prices to Asia
Image: Shutterstock
Updated 8 min 46 sec ago

Saudi Arabia may raise January oil prices to Asia

Saudi Arabia may raise January oil prices to Asia
  • Global oil prices have lost about $10 a barrel since Thursday when news of Omicron shook investors

 

Top oil exporter Saudi Arabia may raise crude prices for Asia in January following large gains in the Middle East spot market last month, but weak refining margins and an oil reserves release by consumers may cap gains, trade sources said.

The January official selling price (OSP) for flagship Arab Light crude could stay little changed or rise as much as $1.20 a barrel to track a similar gain in Dubai benchmark on strong spot crude demand last month, a Reuters survey of sources from seven Asian refiners showed.

A decision on Thursday by the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, whether to continue increasing production by 400,000 barrels per day in January will also affect how Saudi Arabia sets the OSPs, traders said. read more

In addition to weighing the impact of the 50 million barrels of crude release from the United States which some analysts say could lead to surplus in the first quarter, OPEC+ will also be assessing how the Omicron coronavirus variant could affect fuel demand as nations re-impose border restrictions to curb the disease's spread. read more

Global oil prices have lost about $10 a barrel since Thursday when news of Omicron shook investors.

Two of the seven respondents expect Arab Light's January OSP to rise by more than $1 while forecasts from three others are in the 50-80 cents range. The remaining two expect the price to stay unchanged or rise by 10-20 cents.

Spot premiums for several Middle East and Russian grades hit near two-year highs last month on tight supply and robust winter demand, but the SPR release dented sentiment. read more

There's far too much supply with the SPR release, and refining margins have seen a huge drop, said one respondent, referring to the slide in Singapore complex margins from about $8 to $2

“COVID uncertainty has also set in,” he added.

Another trader said supplies from other regions have improved and Saudi crude prices will have to stay competitive. Saudi crude OSPs are usually released around the fifth of each month, and set the trend for Iranian, Kuwaiti and Iraqi prices, affecting about 9 million barrels per day of crude bound for Asia.

State oil giant Saudi Aramco sets its crude prices based on recommendations from customers and after calculating the change in the value of its oil over the past month, based on yields and product prices.

Saudi Aramco officials as a matter of policy do not comment on the kingdom's monthly OSPs.

 


Indian CARS24 raises $20m from the Commercial Bank of Dubai

Indian CARS24 raises $20m from the Commercial Bank of Dubai
Image: Shutterstock
Updated 36 min 2 sec ago

Indian CARS24 raises $20m from the Commercial Bank of Dubai

Indian CARS24 raises $20m from the Commercial Bank of Dubai
  • The funding came following CARS24 's $450 million funding round last September

RIYADH: India-based automotive e-commerce platform CARS24 raised 75 million dirham ($20 million) in local debt funding from the Commercial Bank of Dubai.

The debt funding fuels the company’s operational expansion in the UAE and provides it with significant funding flexibility, Wamda reported. 

The funding came following CARS24 's $450 million funding round last September, and its announcement of further investing $23 million in the UAE and other GCC countries to expand its presence.

“Since last year, there has been a huge increase in the number of online2offline businesses, partially due to the recent global pandemic.  We see a clear need to back these businesses and provide them with the funds they require to scale up and expand,” 

 CBD chief Bernd van Linder said. 

Founded in 2015, CARS24 launched its operations in the UAE market in May 2021 with a presence in Australia, Saudi Arabia, Thailand, allowing its customers to buy and sell pre-owned vehicles online.


Industry leaders to attend Riyadh mineral summit in 2022

Industry leaders to attend Riyadh mineral summit in 2022
Updated 38 min 37 sec ago

Industry leaders to attend Riyadh mineral summit in 2022

Industry leaders to attend Riyadh mineral summit in 2022

RIYADH: Industry leaders from around the world will attend the Future Minerals Summit, which will be held next year from Jan. 11 to 13 in Riyadh, the Saudi Press Agency reported.

Prominent organizations include ACWA Power, Lucid Motor, Barrick Gold Corp., Ivanhoe Mines, the World Bank, the World Gold Council, and the International Council on Mining and Metals. 

The event aims to showcase investment opportunities in the Kingdom’s mining sector.

More than 50 international speakers will attend the summit. Ministers from over 25 Asian and African countries will also hold a meeting, the Saudi Industry Ministry has confirmed.

Speakers will highlight the existing opportunities in the fast-developing mining sector in Saudi Arabia and the rest of the Middle East, Central Asia and Africa, said Khalid Al-Mudaifer, vice minister for mining affairs at the Saudi Ministry of Industry and Mineral Resources.