Finance minister heads Saudi delegation at annual IMF, World Bank meetings

Minister of Finance Mohammed Al-Jadaan will head the Saudi delegation at the International Monetary Fund and World Bank meetings. (File/AFP)
Minister of Finance Mohammed Al-Jadaan will head the Saudi delegation at the International Monetary Fund and World Bank meetings. (File/AFP)
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Updated 13 October 2021

Finance minister heads Saudi delegation at annual IMF, World Bank meetings

Finance minister heads Saudi delegation at annual IMF, World Bank meetings
  • Mohammed Al-Jadaan will also attend the G20 meeting of finance ministers and central bank governors

RIYADH: Saudi Arabia’s Minister of Finance Mohammed Al-Jadaan will head the Kingdom’s delegation at the annual meetings of the International Monetary Fund (IMF) and the World Bank, which kicked off in Washington on Tuesday, Saudi Press Agency announced on Wednesday.
The delegation includes the Governor of the Saudi Central Bank, Fahad Al-Mubarak, and a number of specialists in the Ministry of Finance, the Saudi Central Bank, and the Saudi Fund for Development.
Al-Jadaan will attend the meeting of the IMF and its Financial Committee and the World Bank Group’s Development Committee meeting.
On the sidelines of these meetings, he will also attend the G20 meeting of finance ministers and central bank governors, under the Italian presidency.
The meetings, which will conclude on Friday, will discuss a number of major issues related to the developments and challenges of the global economy, especially health, policies to support the transition to a green economy, support for the most vulnerable countries, issues related to international taxes, in addition to the effect of the COVID-19 pandemic and issues related to the financial sector.


Barclays third quarter profit doubles amid global merger frenzy

Barclays third quarter profit doubles amid global merger frenzy
Updated 5 sec ago

Barclays third quarter profit doubles amid global merger frenzy

Barclays third quarter profit doubles amid global merger frenzy
  • Barclays' results were boosted by the bank releasing 622 million pounds in cash set aside for bad debt charges that have yet to materialise

Barclays reported on Thursday a doubling of third-quarter profits, beating market expectations, as it followed Wall Street rivals in reaping bumper investment banking fees from a surge in advisory mandates and equities trading.


The British bank posted profit before tax of 2 billion pounds ($2.8 billion) for the July-September period, better than the 1.6 billion pounds average of analysts' forecasts and twice the 1.1 billion pounds it made in the same period a year ago.


The strong performance showed the value of Barclays' U.S. business, where it makes nearly half its income, and British banks' balance sheets holding up amid the pandemic with the rest of the sector due to report over the next two weeks.


Barclays' advisory and equities business had a record performance in the first nine months of the year, the bank said, driving a return on equity for the overall investment bank of 16.4 percent compared to 10.5 percent a year ago.


Barclays CEO Jes Staley told reporters the lender was relatively relaxed about the prospect of growing inflation in Britain, saying annual price rises of up to 4 percent could be positive for the bank so long as it was supported by economic growth.


Barclays' results were boosted by the bank releasing 622 million pounds in cash set aside for bad debt charges that have yet to materialise, after government support measures propped up businesses.


Barclays is alone these days among British banks in competing with Wall Street rivals on their home turf across the main investment banking businesses of advisory, equities and fixed income.


That helped it cash in on the surge in M&A fees that saw U.S. peers such as Goldman Sachs and Morgan Stanley smash earnings estimates for the third quarter, as global merger volumes shattered all-time records.


Barclays reported investment banking income from advising on deals rose to 971 million pounds in the third quarter from 610 million in the same period a year ago, while equities income rose 10 percent.
 


UK gets over 48 billion pounds demand for second green gilt

UK gets over 48 billion pounds demand for second green gilt
Getty Images
Updated 16 min 7 sec ago

UK gets over 48 billion pounds demand for second green gilt

UK gets over 48 billion pounds demand for second green gilt
  • The sale will also help Britain's government polish its green credentials as it prepares to host the United Nations COP26 climate conference

Britain received over 48 billion pounds ($66 billion) of demand within half an hour of opening order books for its second green government bond, a month after its first green gilt drew a record 100 billion pounds in demand from investors.


Bookrunners said Britain expected to sell 6 billion pounds of the new July 2053 gilt, compared with 10 billion pounds of the July 2033 green gilt which last month became the largest ever sovereign issue of a green bond.


Proceeds from the sale will be ring-fenced for projects such as offshore wind farms and zero-emission buses.


The sale will also help Britain's government polish its green credentials as it prepares to host the United Nations COP26 climate conference in Glasgow later this month.


The new July 2053 gilt will pay a 1.5 percent coupon and is being offered with a yield that is 0.5 to 1 basis points below that of the benchmark July 2052 conventional gilt, bookrunners on the transaction said.


Order books are due to close at 0830 GMT.


Britain has lagged behind other European countries such as Germany, Italy and Spain in issuing green bonds, partly because of concern that investors would want higher interest rates to compensate for a relative lack of liquidity.


However, the appetite for green debt has surged over the past couple of years - partly because of its appeal to funds dedicated to buying green assets, but also due to concern that regulators and other stakeholders will in the future look more closely at the overall environmental impact of portfolios.


TASI remains stable in early trading today: Market wrap

TASI remains stable in early trading today: Market wrap
Updated 16 min 38 sec ago

TASI remains stable in early trading today: Market wrap

TASI remains stable in early trading today: Market wrap

Saudi Arabia’s Tadawul All Share index barely changed on Thursday morning as it went up by 15.55 points to open at 11,919 points.

Here’s a wrap of the market’s latest news:

Arriyadh Development’s net income more than doubled as it recorded a SR325.2 million ($86.7 million) profit in the first nine months of 2021.

A bad day for dairy companies

NADEC made losses of SR7.8 million ($2.1 million) in the first nine months of 2021, following a profit of SR104.9 ($28 million) in the same period last year.

SADAFCO’s profits slump by 35 percent in the six month period ending on September 30 2021. Its net profit was valued at SR91.7 million ($24.5 million) for the period.

Meanwhile, a 2.5 percent interim cash dividend for the first half of 2021 was approved by Banan Real Estate, a bourse statement by the company said. The total value of dividends is SR5 million ($1.3 million) and the payment date is to be determined

IPOs

Arabian Contracting Services has set SR100 as the final offering price for its IPO. Notably, its IPO was 126.6 percent oversubscribed.

Moreover, Nayifat Finance also set a price range for its offering, to be between SR29 and SR34.


Egypt’s Banque Misr to launch its first Riyadh branch by the end of 2021: Bank’s head

Egypt’s Banque Misr to launch its first Riyadh branch by the end of 2021: Bank’s head
Updated 24 min 16 sec ago

Egypt’s Banque Misr to launch its first Riyadh branch by the end of 2021: Bank’s head

Egypt’s Banque Misr to launch its first Riyadh branch by the end of 2021: Bank’s head

Head of Egypt's Banque Misr is hoping to launch the bank’s first branch in Riyadh by the end of this year, he said in an interview with Al-Arabiya. 

Mohamed El-Etreby said that talks are taking place regarding the organisation of work of Saudi Arabia’s branch.

El-Etreby noted that he expects Banque Misr to obtain a digital bank license by the first quarter of 2022, stressing the bank’s vision towards financial technology and digital banks.

 


Almost all sectors in the Kingdom experienced a decline in sales last week: SAMA

Almost all sectors in the Kingdom experienced a decline in sales last week: SAMA
Updated 54 min 57 sec ago

Almost all sectors in the Kingdom experienced a decline in sales last week: SAMA

Almost all sectors in the Kingdom experienced a decline in sales last week: SAMA

Riyadh: The value of sales across Saudi Arabia decreased by 5.2 percent in the week ending 16 October compared to the previous week, figures released by the Kingdom’s Central Bank (SAMA) revealed.

Data showed that point-of-sale transactions fell back slightly to SR8.7 billion last week, from SR9.1 billion in the previous week.

This decline was driven by a sharp fall in education sales, which were down by 25.8 percent. Sales of miscellaneous goods and services dropped by 9 percent while food and drink sales slipped by 7.9 percent.

The hotel sector was the only one to record an increase in sales. They were up by 24 percent compared to a decline the week before.