MENA-1 WEDNESDAY MORNING ROUND-UP
UAE
Bank of Sharjah hires banks to arrange USD100 million loan FGB to sell first Islamic bond Dubai tourists from the GCC climb 79% Y-o-Y in the 15 June-2 July 2011 period
Kuwait
NBK reports lower-than-expected earnings in 2Q2011 National Bank of Kuwait appeals ruling in Madoff case Zain Sudan in talks with South Sudan on new licence after countrys independence
Qatar
Qatars Finance Minister Kamal replaces PM as Qatari Diar Chairman S&P reviews Qatar for a potential upgrade to emerging market status
Agenda
Qatar Thu 14 July >> Vodafone Qatar (VFQ) 2Q2011 results Sun 17 July >> Qatar Insurance Company 2Q2011 results Mon 18 July >> Al Khalij Commercial Bank (Al Khaliji) 2Q2011 results Mon 18 July >> Ahli Bank 2Q2011 results Tue 19 July >> Nakilat 2Q2011 results Tue 19 July >> Doha Bank 2Q2011 results Wed 20 July >> Qatar Islamic Bank (QIB) 2Q2011 results Wed 20 July >> Mazaya Qatar Real Estate Development Company 2Q2011 results Thu 21 July >> Gulf Warehousing 2Q2011 results Thu 21 July >> UDC 2Q2011 results Sun 24 July >> Ahli Bank press conference Sun 24 July >> Qatar Navigation 2Q2011 results Sun 24 July >> Qatar General Insurance & Reinsurance Company 2Q2011 results Sun 24 July >> Qatar International Islamic Bank (QIIB) 2Q2011 results Sun 24 July >> Islamic Holding Company BOD meeting Mon 25 July >> Nakilat press conference Tue 26 July >> Al Khalij Commercial Bank (Al Khaliji) press conference Wed 27 July >> Dlala Holding Company 2Q2011 results Wed 27 July >> Commercial Bank of Qatar (CBQ) 2Q2011 results Thu 28 July >> Qatar National Bank 1H2011 press conference Thu 28 July >> Al Khalij Holding Company 2Q2011 results Sun 31 July >> Qatar Oman Investment Company 2Q2011 results Sun 31 July >> Medicare Group 2Q2011 results Mon 1 August >> The National Leasing Holding Company 1H2011 press conference Tue 2 August >> Masraf Al Rayan 2Q2011 results Wed 3 August >> Qatar National Cement Company 2Q2011 results Tue 9 August >> Masraf Al Rayan press conference Sun 14 August >> Qtel 2Q2011 results Sun 14 August >> Doha Insurance 2Q2011 results
UAE News
Bank of Sharjah hires banks to arrange USD100 million loan
Bank of Sharjah ([Link]) hired a group of banks to arrange a USD100 million loan for general corporate purposes. The two-year loan will be arranged by Commerzbank AG, National Bank of Abu Dhabi (NBAD) [[Link]], Intesa Sanpaolo and Wells Fargo Co., the bank said in a statement to the Abu Dhabi bourse on 12 July 2011. Bank of Sharjah said that its existing one-year loan of USD150 million will be repaid on maturity on 29 July 2011. (Bloomberg) National Bank of Abu Dhabi: AED11.05, Rating: Neutral, FV: AED13.00, MCap: USD8,641 million, NBAD UH / [Link] FGB to sell first Islamic bond First Gulf Bank (FGB) [[Link]] plans to sell its first Islamic bond under a USD3.5 billion sukuk programme, as yields on Islamic debt reached a six-year low. Citigroup Inc., HSBC Holdings Plc and Standard Chartered Plc were hired to manage the sale, according to a prospectus filed with the London Stock Exchange on 12 July 2011. (Bloomberg) First Gulf Bank: AED17.75, Rating: Buy, FV: AED24.30, MCap: USD6,650 million, FGB UH / [Link] Dubai tourists from the GCC climb 79% Y-o-Y in the 15 June-2 July 2011 period Dubai recorded a 79% Y-o-Y increase in tourists visiting from GCC countries between 15 June 2011 and 2 July 2011, the General Directorate of Residency and Foreigners Affairs Dubai said in an emailed statement on 12 July 2011. (Bloomberg)
Kuwait News
NBK reports lower-than-expected earnings in 2Q2011 National Bank of Kuwaits (NBK) [[Link]) 2Q2011 earnings miss forecasts on higher provisioning; revenue in line: NBK has reported a 2Q2011 net profit of KWD65.9 million, down 5% Y-o-Y and 18% Q-o-Q, missing our forecast by 19% on higher-than-expected provisioning charges. Revenues were in line with our forecast and grew 6% Y-o-Y (flat Q-o-Q). Operating earnings expansion of 13% Y-o-Y was above revenue growth, as operating expenses declined on a Y-o-Y basis. Our FY2011 earnings forecast offers downside risks following the high provisioning charge this quarter. Provisioning in 2Q2011 was the highest charge that NBK has reported over the past two years, and the fact that the charge relates mainly to specific provisions (as opposed to general provisions) suggests that credit quality will have deteriorated in 2Q2011. However, NBK reported a decline in the NPL ratio to 1.61% in June 2011 from 1.69% in March 2011. Our initial reading into these numbers is that the provisioning could be linked to NBKs exposure to Egypt through its subsidiary Al Watany Bank, which we estimate accounts for roughly 4% of NBKs loan book. Deposits declined 9% Q-o-Q after a strong 12% Q-o-Q growth in 1Q2011. The loan book contraction was slightly disappointing, as we were expecting a marginal 1% Q-o-Q increase in the loan book in 2Q2011. Credit growth in Kuwaits market continues to disappoint, as progress in the implementation of the government investment plan has been limited. Net interest income increased 6% Y-o-Y and was broadly flat Q-o-Q, marginally ahead of expectations. Asset yields continued to trend down in 2Q2011 although this was partly cushioned by a decline in funding costs. The overall net interest spread declined by around 10 bps Q-o-Q. We are not expecting any material improvement in net interest spreads until credit growth trends start improving. (Company Disclosure, Elena Sanchez-Cabezudo) National Bank of Kuwait: KWD1.14, Rating: Buy, FV: KWD1.33, MCap: USD13,810 million, NBK KK / [Link] National Bank of Kuwait appeals ruling in Madoff case According to press reports, National Bank of Kuwait (NBK) [[Link]] appealed a judges ruling in the Bernard Madoff case that barred investors of so-called feeder funds from filing claims against the Madoff estate as they were not customers of Madoffs firm. Similar appeals were filed today by the trustees of Tufts College, AXA Private Management and other investors. (Bloomberg) National Bank of Kuwait: KWD1.14, Rating: Buy, FV: KWD1.33, MCap: USD13,810 million, NBK KK / [Link] Zain Sudan in talks with South Sudan on new licence after countrys independence Zain Sudan, a unit of Zain Group ([Link]), is in talks with South Sudan to obtain a licence to operate in the newly independent country, according to the companys Managing Director Elfatih Erwa. Zain Sudan is one of the three carriers licensed from Khartoum and will continue to operate from the South as usual until a new licence is agreed. The
firm will split its Sudan operations after South Sudan obtains an international dialling code. According to Erwa, only one million of South Sudans estimated eight million people have mobile phones, but this will likely treble in three years. South Sudan is considered one of the least developed countries of the world, with a geographical size of France but a paved roads network, which stretches for only 50 km. (Arabian Business) Zain Group: KWD1.00, Rating: Sell, FV: KWD0.90, MCap: USD14,276 million, ZAIN KK / [Link]
Qatar News
Qatars Finance Minister Kamal replaces PM as Qatari Diar Chairman Qatars Finance Minister, Yousef Kamal, has replaced the Gulf-states Prime Minister, Sheikh Hamad bin Jassim bin Jaber Al Thani, as Chairman of Qatari Diar Real Estate Investment Co., Zawya Dow Jones reported, according to three unnamed sources familiar with the matter. Qatari Diar, the property arm of Qatars sovereign wealth fund, will play a key role in the implementation of Qatars USD100 billion infrastructure programme in preparation for the 2022 FIFA World Cup. Qatari Diar is 100% owned by the Qatar Investment Authority (QIA). (Zawya Dow Jones) S&P reviews Qatar for a potential upgrade to emerging market status Standard & Poors (S&P) announced that it is reviewing Qatar, the UAE and Jordan for a potential upgrade to emerging market status, Reuters reported. The consultations are currently ongoing and we aim to reach a decision by the first quarter of 2012, S&P Indices Head of Client Coverage for Middle East and Africa, Charbel Azzi, was quoted as saying. Obviously, we know that [the] UAE and Qatar have been contenders for the emerging market status, he added. S&P, which is currently in talks with institutional investors and other market participants, will complete its consultation process by 26 August 2011, Azzi explained. The feedback of the consultation will then be passed to S&Ps Index Committee who will make a decision whether to upgrade or not. (Reuters, The Peninsula Qatar)
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