LONDON: Banque Saudi Fransi shares fell by 3.1 percent on Sunday after a rise in impairments led to a drop in profits.
The increase in impairments was the main factor in a 6.4 percent fall in profit last year to SR3.31 billion ($882.56 million), the Riyadh-based lender said in a filing to the Tadawul.
Overall operating expenses spiked by more than 14 percent last year. “This increase in total operating expenses was primarily due to higher impairment charge for credit losses and for other financial assets,” the bank said in the statement.
However, the credit losses were partially offset by a reduction in other operating expenses at the bank, including rent, salaries and administrative costs.
Impairments for credit losses jumped by 69.5 percent over the quarter to SR878 million. The increase was even more pronounced over the year as total impairments rose by more than 80 percent to SR1.2 billion.
While successive US interest rate rises have helped regional lenders boost their interest income on loans in the past year, they are also coming under pressure from a weaker oil price and regional economic slowdown that is hurting many of their customers.
A wave of banking sector consolidation is underway in both the UAE and Saudi Arabia as lenders seek to trim costs
in response to changing economic realities.
Saudi Arabia’s biggest lender, National Commercial Bank, revealed in December that it was in takeover talks with Riyad Bank.
Meanwhile, in the UAE, Abu Dhabi Commercial Bank, Union National Bank and Al Hilal Bank have also agreed a three-way merger, creating the third-largest bank in the country.
Despite the tougher economic conditions across the region, some analysts remain upbeat on the performance of the banking sector in Saudi Arabia.
“The challenges for Saudi banks in 2019 include growing loan books outside of retail mortgages; containing any increase in cost of funds if oil prices remain weak; driving cost efficiency through digitization; and countering competition from digital-payment platforms,” Aqib Mehboob, an analyst at Saudi Fransi Capital in Riyadh, told Bloomberg last month.
“The SABB-Alawwal merger and potential NCB and Riyad Bank merger may drive other banks to evaluate opportunities to gain scale,” he said.
Saudi Fransi hit by impairment rise
Saudi Fransi hit by impairment rise
Pakistan urges religious devotees to postpone travel to Iran, Iraq amid regional tensions
- A senior government official says currently there are an estimated 5,000 Zaireen in Iran
- Israel launched strikes against Iranian military and nuclear facilities earlier in the day
ISLAMABAD: Pakistan on Friday advised its citizens planning religious travel to Iran and Iraq to reconsider their plans, citing security concerns after Israeli strikes on Iranian military and nuclear facilities earlier in the day.
The advisory mentions Pakistani “Zaireen,” or Shi’ite Muslim pilgrims who travel to Iran and Iraq to visit sacred religious sites, particularly in Mashhad, Qom, Najaf and Karbala.
The region has seen heightened tensions following Israeli attacks on key installations in Iran, prompting fears of broader instability.
“In view of the evolving security situation in the region, the Zaireen from Pakistan are advised to reconsider their travel plans to Iran and Iraq,” the foreign office said in a brief statement issued in Islamabad.
According to a senior government official who spoke on condition of anonymity, the number of Zaireen traveling to Iran fluctuates, and most do not contact the Pakistani diplomatic missions.
“Currently, there are an estimated 5,000 Zaireen in Iran,” he said, adding that Pakistan’s embassy in Tehran and its consulates remain available to assist citizens.
“Any Pakistani requiring guidance or support is encouraged to contact our relevant diplomatic missions, which will, as always, provide necessary assistance and facilitate their return to Pakistan,” the official added.
While no evacuation plans have been announced, the authorities say they are closely monitoring the regional situation.
India in mourning after over 240 killed in deadliest aviation disaster in decades
- Sole flight survivor Ramesh Viswashkumar a British national of Indian origin, is being treated at a hospital, airline confirms
- London-bound Dreamliner with 242 people on board also killed dozens more when it crashed into a medical college hostel
NEW DELHI, India: Indian authorities were combing the site of one of India’s deadliest aviation disasters on Friday, after an Air India plane crashed in the western city of Ahmedabad less than a minute after takeoff, killing all but one of its passengers.
The London-bound Boeing 787-8 Dreamliner, which had 242 people on board, also killed dozens more people when it crashed into a medical college hostel located just outside Ahmedabad airport and burst into flames on Thursday afternoon.
The sole survivor, a British national of Indian origin, is being treated in a hospital, the airline confirmed.
“We are all devastated by the air tragedy in Ahmedabad. The loss of so many lives in such a sudden and heartbreaking manner is beyond words. Condolences to all the bereaved families,” Indian Prime Minister Narendra Modi wrote on social media after visiting the crash site in the capital of his home state of Gujarat.
The passengers comprised 169 Indian nationals, 53 Britons, 7 Portuguese and one Canadian.
The surviving passenger, who was in seat 11A next to an emergency exit in front of the plane’s wing, reportedly managed to jump out. He told Indian media that he had heard a loud noise shortly after flight AI171 took off.
Various footage showed the plane taking off over a residential area and then sinking and disappearing from the screen, before a huge fireball could be seen rising into the sky from beyond the houses.
Those killed on board include a family who was visiting India for Eid, a newlywed who is moving to the UK and Vijay Rupani, former chief minister of Gujarat.
Health authorities are conducting DNA tests to identify bodies, which were mostly charred beyond recognition, as relatives take part and wait for officials to release the remains.
Suresh Khatika, who was waiting at the Ahmedabad Civil Hospital where the DNA testing was taking place, said his niece Payal Khatika was among the passengers.
“Payal was going for further studies and she has taken a loan for it. She was really preparing herself for the day when she would go to the UK for studies,” Khatika told Arab News.
“It is really tragic that her dream crashed like this. We are in deep pain, and don’t know how to react.”
Many Indians have also taken to social media to mourn the victims, as their stories circulated widely. Among them is Dr. Pratik Joshi, who was reportedly bringing his wife, Dr. Komi Vyas, and three young children to move to the UK. A picture of the family, believed to be taken on the plane and shared with relatives before takeoff, has garnered millions of views online as messages of condolence poured in.
In addition to the passengers and crew, dozens more people perished as they were caught in the path of the plane crash.
Thakur Ravi, a cook at B.J. Medical College, said his mother and two-year-old daughter, who had been on the side of the building where the plane had crashed, were missing.
“Other helpers and cooks managed to escape but my mother and daughter have been missing since yesterday,” Ravi told Arab News.
“We are frantically hoping against hope to have my family back. It was a horrible incident. It seemed as if the sky had fallen on us.”
Indian Civil Aviation Minister Ram Mohan Naidu said a formal investigation headed by the Aircraft Accident Investigation Bureau has been launched.
Boeing said it was in touch with Air India and stood “ready to support them” over the incident. The UK and US air accident investigation agencies also announced they were sending teams to support their Indian counterparts.
India, the world’s third-largest aviation market, has endured several fatal air crashes on its soil, including in 1996, when two planes collided mid-air over New Delhi, killing around 350 people. In 2010, an Air-India Express jet crashed and burst into flames at Mangalore airport in south-west India, killing 158 of the 166 passengers and crew onboard.
Saudi and UK foreign ministers discuss regional developments
LONDON: Saudi Foreign Minister Prince Faisal bin Farhan met in London with UK Foreign Secretary David Lammy on Friday to discuss ties and regional developments, the foreign ministry announced.
The meeting touched on areas of joint cooperation and ongoing efforts to address regional challenges, the ministry added.
Prince Musab bin Mohammed Al-Farhan, advisor to the Minister of Foreign Affairs for Political Affairs, was also present.
The talks come ahead of next week’s Saudi-French conference on Palestine in New York, where international officials will seek to revive momentum for a two-state solution and outline steps toward Palestinian statehood.
Judge blocks Trump’s election executive order, siding with Democrats who called it overreach
ATLANTA: A federal judge on Friday blocked President Donald Trump’s attempt to overhaul elections in the US, siding with a group of Democratic state attorneys general who challenged the effort as unconstitutional.
The Republican president’s March 25 executive order sought to compel officials to require documentary proof of citizenship for everyone registering to vote for federal elections, accept only mailed ballots received by Election Day and condition federal election grant funding on states adhering to the new ballot deadline.
The group of attorneys general said the directive “usurps the States’ constitutional power and seeks to amend election law by fiat.” The White House has defended the order as “standing up for free, fair and honest elections” and called proof of citizenship a “commonsense” requirement.
Pakistan’s Babar Azam to make Big Bash debut with Sydney Sixers in Australia
- Former Pakistan skipper says playing first-ever BBL match will be ‘something special’
- BBL is a Twenty20 cricket competition that features Australia’s eight city-based teams
ISLAMABAD: Former Pakistan captain Babar Azam has been picked by Sydney Sixers to debut in the upcoming 15th season of Australia’s Big Bash League (BBL), the club announced on Friday.
The BBL is a professional Twenty20 cricket competition in Australia that features eight city-based teams.
Launched in 2011, the league is held during the summer and features a mix of local and international players.
“The SCG [Sydney Cricket Ground] has been home to many legends. Now it’s home to the [king]. Welcome, Babar Azam,” the Sydney Sixers said in a post on X.
Azam said he was “super pumped” to join the team, highlighting that his BBL debut “will be something special.”
“Cannot wait to share the dressing room with my favorite batter Steve Smith and world class bowler Josh Hazlewood,” he was quoted saying in a video posted by BBL on X.
“So really excited and looking forward to getting over there and meeting my craziest cricket fans.”
Azam has featured in several major franchise leagues around the world.
Apart from competing in the Pakistan Super League, Azam has played for Guyana Amazon Warriors in the Caribbean Premier League, Sylhet Sixers and Rangpur Riders in the Bangladesh Premier League, and Somerset in England’s T20 Blast.
