Provisions by most banks in Gulf oil producers surged in the second quarter of 2012 after a decline in the previous quarter, stifling their net profits achieved mainly from higher interest income, according to a Kuwaiti bank. Four banks in the UAE, the second largest Arab economy with the biggest banking sector, were the only banks to record a decline in loan loss provisions in the second quarter, Global Investment House ( GIH ) said in a study. The collective non-performing loan provisions made by the 22 Gulf Cooperation Council (GCC) banks covered by the study plunged by 46 per cent in the first quarter compared with the previous quarter and by around five percent compared with the first quarter of 2011, GIH said. More»

The Egyptian Petroleum Development Company will start new programs for implementing plans to meet the requirements of the petroleum sector in drilling oil wells and other works, said Abdel Megid El-Rashidy, chairman of the Company. The Company plans to implement the latest technology in exploration of oil and natural gas, in addition to providing technical consultations and contributions in drilling for oil, maintaining wells and building oil reservoirs as well as training staff working in petroleum companies. El-Rashidy added that the company is negotiating with the National bank of Egypt (NBE) in order to receive a loan to be used in financing the purchasing of a new digger which costs about EGP 15 million, as part of the company’s efforts in developing the oil exploration system. A session will be held within the next two days to reach an agreement about purchasing the digger. More»

Credit Agricole SA, France’s third- largest bank by market value, posted a 67 percent decline in second-quarter profit on losses in Greece and a writedown of its stake in Intesa Sanpaolo SpA. (ISP) Net income fell to 111 million euros ($138.6 million) from 339 million euros a year earlier, the bank, based near Paris, said in a statement today. The company booked 370 million euros of losses in Greece, as well as a 427 million-euro charge on its holding in Milan-based Intesa, Italy’s second-largest bank. Credit Agricole, led by Chief Executive Officer Jean-Paul Chifflet, is shutting its riskiest investment-banking activities and weighing offers from Greece’s three largest lenders for its Emporiki Bank unit in the country, which is stuck in a five-year recession. The bank said it’s still studying the bids. “Greece and Italy keep poisoning their results,” said Gregory Moore, who helps manage 200 million euros at Montsegur Finance in Paris, including shares in Credit Agricole. (ACA) “It’s disappointing as we didn’t get more significant details” about the sale of Emporiki, he said. More»

Out of the top 50 banks in the Middle East ranked by assets for the period H1 2011, Saudi banks lead the pack "having a good track record of maintaining strong asset quality and adapting adequate lending practices and underwriting standards," Sheetal Kothari, research analyst, business and financial services practice, Frost & Sullivan, said. The Gulf Business Top 50 Banks in the Middle East report said "Saudi Arabia’s traditionally conservative fiscal polices coupled with the billion-dollar government budget, has buoyed the banking sector with four out of the five top ten banks being based in the Kingdom." Saudi Arabia is one of the world’s fastest growing banking markets. More»

Emirates NBD Asset Management Limited, the asset management arm of Emirates NBD Bank, announced strong dividends to be distributed on its income range of funds for the first half of 2012, on Monday. The dividends approved by the boards of the Jersey-based funds cover the trading period from January 1, 2012 to June 30 2012. They are as follows: Emirates Mena Fixed Income Fund: 2.5 per cent (based on June 30, NAV, annualised five per cent); Emirates Mena High Income Fund: 2.5 per cent (based on June 30, NAV, annualised five per cent) and Emirates Global Sukuk Fund: two per cent (based on June 30 2012 NAV, annualised four per cent). The year-to-date (YTD) total return for the Emirates Global Sukuk fund as at August 9, stands at 7.42 per cent, while the YTD total return for the Emirates Mena Fixed Income Fund 10.11 per cent. The Emirates Mena High Income Fund has returned an equally strong 5.80 per cent. More»