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
UPDATE 1-US Senate Republicans pass measure to move forward on Trump’s tax cuts
Plunging stock market hovers over fiscal outlook
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House Republicans now must weigh Senate’s work
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Democrats warn that Medicaid under threat
(Updates with vote details, fresh quotes and background throughout)
By David Morgan, Richard Cowan and Bo Erickson
WASHINGTON, April 5 : The US Senate approved a Republican budget blueprint early on Saturday that aims to extend trillions of dollars worth of President Donald Trump’s 2017 tax cuts and sharply reduce government spending.
The 51-48 vote, following a late-night legislative session, unlocks a maneuver called budget reconciliation that will allow Republicans to bypass the Senate’s filibuster — a rule that imposes a 60-vote threshold on most legislation — and pass Trump’s tax, border security and military priorities later this year without Democratic votes.
“Tonight, the Senate took one small step toward reconciliation and one giant leap toward making the tax cuts permanent, securing the border, providing much-needed help for the military and finally cutting wasteful Washington spending,” Senate Budget Committee Chairman Lindsey Graham said.
Two Republicans — Senators Susan Collins and Rand Paul — joined Democrats in opposing the measure.
The Senate’s action sent the measure on to the Republican-led House of Representatives, which is expected to take it up next week.
Non-partisan analysts say the Trump agenda, if enacted, would add about $5.7 trillion to the federal government’s debt over the next decade. Senate Republicans contend the cost is $1.5 trillion, saying that the effects of extending existing tax policy that was scheduled to expire at the end of this year should not be counted in the measure’s cost.
The measure also aims to raise the federal government’s debt ceiling by $5 trillion, a move Congress has to make by summer or risk defaulting on $36.6 trillion in debt. It aims to partly offset the deficit-raising costs of tax cuts by cutting spending. Democrats have warned that Republican targets would imperil the Medicaid health insurance program for low-income Americans.
Republicans warned that allowing the 2017 tax cuts to expire would hit Americans hard, imposing a 22 percent tax hike on the average taxpayer. The cuts, Trump’s signature legislative achievement of his first term, reduced the top corporate tax rate to 21 percent from 35 percent, a move that is not set to expire.
The remainder of the cuts, for individual Americans, were set to expire, a decision made to limit the 2017 bill’s deficit-raising effects.
“Donald Trump has betrayed the American people. Tonight, Senate Republicans joined him in that betrayal. In voting for this bill, Senate Republicans sided with billionaires against the middle class, in total obeisance to Donald Trump,” Senate Democratic leader Chuck Schumer of New York said after the vote.
BRUTAL SELL-OFF
Hanging over the debate, which began late on Thursday, was a brutal stock market sell-off following Trump’s sweeping new trade tariffs, which economists warned will drive up prices and could trigger a recession.
Some Republicans said economic uncertainty could slow the path forward for Trump’s agenda if market weakness continues.
“My concern is, if we are having the kind of conversation today three weeks from now, then the distraction will be so great that it will slow down what we try to do,” Republican Senator Thom Tillis told reporters.
During a six-hour “vote-a-rama” session to consider amendments, Senate Republicans altered the blueprint to add a deficit-neutral reserve fund to help protect Medicaid and the Medicare health care program for the elderly.
Republicans also turned away dozens of Democratic amendments aimed at rescinding Trump trade tariffs and protecting Medicaid, Medicare, nutrition support for low-income women and children, the Social Security retirement system, veterans benefits and other government assistance.
Republican Senators Lisa Murkowski, Josh Hawley and Collins backed Democratic measures to safeguard social safety-net programs, but their support was not enough.
If House Republicans get their way, Congress could enact $2 trillion in spending cuts by overhauling Medicaid and food assistance programs and by eliminating popular environmental policies.
The budget blueprint would also make room for tighter security measures along the US border with Mexico, fund administration efforts to significantly ramp up immigrant deportations and bolster US military readiness. (Reporting by David Morgan, Richard Cowan and Bo Erickson; Editing by Scott Malone, Rosalba O’Brien, Aidan Lewis)
Verstappen takes pole for Japanese Grand Prix ahead of Norris
- Motor racing-Verstappen conjures up stunning pole lap at Suzuka
SUZUKA, JAPAN: Four-time world champion Max Verstappen smashed the track record to snatch pole position for Sunday’s Japanese Grand Prix ahead of McLaren’s Lando Norris, as Yuki Tsunoda qualified a lowly 15th in his Red Bull debut.
Verstappen clocked a blistering lap of 1min 26.983sec in his Red Bull, 0.012sec ahead of championship leader Norris, with McLaren’s Oscar Piastri third.
Verstappen set a new Suzuka track record with his final lap in Saturday’s qualifying, pipping Norris right at the death.
“Each session we kept making little improvements, then the last lap was flat out,” said Verstappen, who has won the Japanese GP for the last three years.
“In a Formula One car around here is insane. This is a proper highlight for us to be back on pole here.”
It was Verstappen’s first pole position of the season.
The Dutchman is still looking for his first grand prix win of the new campaign.
Ferrari’s Charles Leclerc was fourth ahead of Mercedes’ George Russell, with Mercedes’ Kimi Antonelli sixth and RB’s Isack Hadjar seventh.
Ferrari’s Lewis Hamilton was eighth, followed by Williams’s Alex Albon and Haas’s Oliver Bearman.
Norris is looking for his second grand prix win of the season, after triumphing in the season opener in Australia.
He finished second behind Piastri in China a fortnight ago in a dominant start to the campaign for McLaren.
“I’m happy, congrats to Max, he did a good job,” said Norris.
“You have to credit something when it is a lap that good that he must have done. I got everything out of the car today, the gaps are tiny.
“Good but not enough.”
Tsunoda was eliminated in Q2 in a disappointing first qualifying drive for Red Bull after being promoted in place of Liam Lawson last week.
The Japanese driver finished one place behind Lawson, who returned to RB after just two races for Red Bull in a ruthless driver swap.
Verstappen has not looked comfortable this week and he again complained to his team over the radio in Q1.
“I still have the same problem, the tires are not gripping on the front,” the Dutchman said.
Alpine’s Pierre Gasly, Williams’s Carlos Sainz and Aston Martin’s Fernando Alonso were eliminated in Q2 along with Lawson and Tsunoda.
Sauber pair Nico Hulkenberg and Gabriel Bortoleto, Haas’s Esteban Ocon, Alpine’s Jack Doohan and Aston Martin’s Lance Stroll were all eliminated in Q1.
Doohan’s practice on Friday ended when he crashed heavily into a barrier and mechanics had to work through the night to repair his badly damaged car.
Qualifying was suspended for about eight minutes in Q2 when a small trackside fire broke out as sparks from the cars ignited the grass in the dry conditions.
It was the fifth such incident of the weekend, with the second and third practice sessions also disrupted by fires.
Rain has been forecast for Sunday’s race.
Thousands rally for South Korea’s impeached ex-president Yoon
- The Constitutional Court unanimously ruled on Friday to remove Yoon over the December 3 attempt to subvert civilian rule
SEOUL: Thousands protested in the South Korean capital Saturday in support of disgraced ex-president Yoon Suk Yeol, who was removed from office a day earlier over his bungled martial law declaration.
South Korea’s Constitutional Court unanimously ruled on Friday to remove Yoon over the December 3 attempt to subvert civilian rule, triggering fresh elections to be held by June after months of political turmoil.
A long wait for the court’s ruling had heightened tensions in the Asian nation, fueling far-right support for Yoon and weekly rival rallies in capital Seoul.
His supporters took to the streets in the capital and braved the rain on Saturday, chanting “impeachment is invalid!” and “nullify the snap election!“
“The Constitutional Court’s decision destroyed our country’s free democracy,” said protester Yang Joo-young, 26.
“Speaking as someone in my 20s or 30s, I’m deeply worried about the future.”
Yoon had defended his martial law attempt as necessary to root out “anti-state forces” and what he claimed were threats from North Korea.
But there were many scenes of jubilation in Seoul on Friday from those opposed to Yoon’s rule, with people hugging and crying after the ruling was delivered.
Yet Yoon had found backing from extreme religious figures and right-wing YouTubers who experts say used misinformation to court support for the former star prosecutor.
“Yoon’s presidency has revealed the societal cracks based on political polarization and misinformation,” Minseon Ku, a postdoctoral fellow at William & Mary Global Research Institute, told AFP.
The court ruled that Yoon’s actions in December had posed a “grave threat” to the country’s stability.
Opposition leader Lee Jae-myung is seen as the frontrunner in the next election, experts say, and his party has taken a more conciliatory approach toward North Korea.
Some Yoon supporters were worried about the prospect of a Lee presidency.
“I honestly believe South Korea is finished,” said pro-Yoon supporter Park Jong-hwan, 59.
“It feels like we’ve already transitioned into a socialist, communist state.”
India’s Modi urges Bangladesh leader to avoid rhetoric that mars ties
- Indian official says both leaders discussed Bangladesh’s request for Hasina Wajid’s extradition
- Public opinion in Bangladesh has soured over India’s sheltering of the former prime minister
BANGKOK/NEW DELHI: India’s prime minister urged Bangladesh’s interim leader to avoid rhetoric that marred bilateral relations during their first meeting on Friday since the ouster of Bangladeshi premier Sheikh Hasina, India’s foreign ministry said.
Relations between the South Asian neighbors, which were robust under Hasina, have deteriorated since she fled the country last August, in the face of massive student-led protests, and sought shelter in India.
Muhammad Yunus, a Nobel Peace Prize winner who took over as the chief adviser of an interim government in Dhaka after Hasina’s exit, met Indian Prime Minister Narendra Modi on Friday on the fringes of the BIMSTEC summit in Bangkok.
“Prime Minister (Modi) urged ... that any rhetoric that vitiates the environment is best avoided,” India’s foreign secretary Vikram Misri told reporters.
“(Modi) reiterated India’s support for a democratic, stable, peaceful, progressive and inclusive Bangladesh,” Misri said, adding that the Indian leader had also stressed New Delhi’s desire for “a positive and constructive relationship with Bangladesh based on a spirit of pragmatism.”
Bangladesh described the 40-minute exchange between the two leaders as “candid, productive, and constructive.”
Yunus told Modi that Bangladesh wanted to work with him to set the relationship on the right track for the benefit of both countries, Yunus’s press office said in a statement.
Public opinion in Bangladesh has turned against India, in part over its decision to provide sanctuary to Hasina. New Delhi has not responded to Dhaka’s request to send her home for trial.
‘ATROCITIES’
The two leaders discussed Bangladesh’s request seeking Hasina’s extradition, Misri said, without elaborating further.
“She has consistently made false and inflammatory accusations against the interim government of Bangladesh,” the statement from Bangladesh quoted Yunus as saying.
Yunus requested New Delhi take appropriate measures to restrain Hasina from making incendiary remarks while she remained in India, said the statement, adding that Modi said India did not support any particular party in Bangladesh.
India’s Misri said Modi had asked Yunus to help maintain border security and stability, and expressed his hope that Bangladesh would thoroughly investigate all cases of “atrocities” committed against people from minority groups, including Hindus.
India has repeatedly urged Bangladesh to protect its minority Hindus, saying they were being targeted in the Muslim-majority country since Yunus took charge. Dhaka says the violence has been exaggerated and is not a communal issue.
“The hope would be that this meeting would start the process of rebuilding some engagement,” said Harsh Pant, foreign policy head at the Observer Research Foundation, an Indian think-tank.
“I think at this point, simply stabilizing the relationship perhaps should be the priority.”
With longstanding cultural and business ties, the two nations share a 4,000 km (2,500 mile) border. India also played a key role in the 1971 war with its rival Pakistan that led to the creation of Bangladesh.
Modi and Yunus met on the sidelines of a summit in Bangkok of BIMSTEC, or the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation, a grouping that also includes Thailand, Myanmar, Nepal, Sri Lanka and Bhutan.
Pakistan elected to UN narcotics commission with top regional vote share
- Pakistan’s term at the commission will begin in 2026 and run through 2029
- Commission members guide global drug policy and tackle transnational crime
ISLAMABAD: Pakistan was elected as a member of the UN Commission on Narcotic Drugs (CND) for a four-year term on Friday, securing the highest number of votes among member states contesting for seats from their respective regional groups, its UN mission said.
The CND, operating under the UN Economic and Social Council (ECOSOC), serves as the main policymaking body for international drug control.
Member states of the commission guide global narcotics regulations, including decisions on how certain substances are categorized and controlled.
Pakistan’s inclusion in the commission will allow it to influence international drug policy, particularly on issues affecting regional trafficking routes, public health and transnational crime.
“Pakistan is gratified by the resounding support received from ECOSOC,” the country’s mission to the United Nations said in a statement. “It reflects the confidence and trust reposed in Pakistan to play its active role in the CND as part of global counter narcotics efforts and multilateral policy discourse on drug related issues.”
“Pakistan has been at the forefront of global counter-narcotics efforts, playing a crucial role in combating illicit drug trafficking, production, and abuse,” the statement added.
Pakistan’s new term at the CND will begin in 2026 and continue through 2029.
The country has previously participated in global drug policy forums and says it looks forward to strengthening the role of the CND in ensuring effective and balanced international drug control in line with the UN conventions.
