HSBC, Europe’s biggest bank by market value, revealed in its third-quarter earnings that the Middle East and North Africa was one of its best performing regions amid an economic boom in the Arabian Gulf that has driven up demand for loans. Other services such as securities underwriting and wealth management also benefited.
The bank’s regional pretax profit in the three months ended September 30 rose 28 per cent to US$487 million compared to $379m in the same period a year earlier. Income before taxes from retail banking and wealth management in the region outperformed the bank’s other lines of business, jumping 54 per cent to $91m from $59m.
However, the bulk of the pretax profit, about $246m, came from its global banking and markets division, which includes investment banking services such as arranging initial public offerings for companies and equities trading.
Banks in the UAE have been the biggest beneficiaries of an economic resurgence that propelled GDP growth to more than 4 per cent last year as corporations and individuals took bank loans for everything from refinancing old debt to buying new homes and cars. But because interest rates are low, this has meant banks – of which there are more than 50 servicing a population of 9 million in the UAE – have had to compete for clients and search for other ways to make money apart the interest they make on loans in fields that include trade finance, asset management and securities brokerage.
Elsewhere for HSBC, things have not been as rewarding. The bank reported overall lower than estimated third-quarter profits as it set aside more than $1 billion for customer compensation and an investigation into rigging currency markets.
Pretax profit rose to $4.61bn from $4.53bn in the year-earlier period, the London-based lender said yesterday. That compares with the $5.47bn average estimate of seven analysts compiled by Bloomberg. The bank made a $378m provision towards a settlement of the currency benchmark-rigging investigation and set aside an additional $701m to redress customers in Britain.
The chief executive, Stuart Gulliver, has exited at least 68 businesses since taking over in 2011 as he shifts investment to the bank’s most profitable markets amid increased regulation and compliance costs in Europe and the United States. The lender, which gets most of its revenue from Asia, has provisioned $1.97bn this year for customer compensation, litigation and other charges, overshadowing gains in profit. Its North America profit fell 85 per cent this year to $58m because of this.
HSBC’s shares were down 1.1 per cent to 632.5 pence in late morning London trading after dropping as much as 3 per cent earlier. The stock has fallen 4.6 per cent this year, giving it a market value of about £121bn (Dh711.21bn).
HSBC’s best-performing region was Europe, which swung to a pretax profit of $493m from a $45m loss in the same period last year. The bank said loan impairment costs decreased by $1bn in the region, mainly driven by improvements to UK commercial banking and an improving economy.
In Asia, profit fell about 3 per cent to $3.5bn.
mkassem@thenational.ae
* with agencies
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Playing records of the top 10 in 2017
How many games the top 10 have undertaken in the 2017 ATP season
1. Rafael Nadal 58 (49-9)
2. Andy Murray 35 (25-10)
3. Roger Federer 38 (35-3)
4. Stan Wawrinka 37 (26-11)
5. Novak Djokovic 40 (32-8)
6. Alexander Zverev 60 (46-14)
7. Marin Cilic 43 (29-14)
8. Dominic Thiem 60 (41-19)
9. Grigor Dimitrov 48 (34-14)
10. Kei Nishikori 43 (30-13)
Mohammed bin Zayed Majlis
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UAE currency: the story behind the money in your pockets
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
Killing of Qassem Suleimani
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Killing of Qassem Suleimani
Read more about the coronavirus
Sunday's Super Four matches
Dubai, 3.30pm
India v Pakistan
Abu Dhabi, 3.30pm
Bangladesh v Afghanistan
More from Neighbourhood Watch:
What are the main cyber security threats?
Cyber crime - This includes fraud, impersonation, scams and deepfake technology, tactics that are increasingly targeting infrastructure and exploiting human vulnerabilities.
Cyber terrorism - Social media platforms are used to spread radical ideologies, misinformation and disinformation, often with the aim of disrupting critical infrastructure such as power grids.
Cyber warfare - Shaped by geopolitical tension, hostile actors seek to infiltrate and compromise national infrastructure, using one country’s systems as a springboard to launch attacks on others.
Mohammed bin Zayed Majlis
The specs: 2019 Mercedes-Benz C200 Coupe
Price, base: Dh201,153
Engine: 2.0-litre turbocharged four-cylinder
Transmission: Nine-speed automatic
Power: 204hp @ 5,800rpm
Torque: 300Nm @ 1,600rpm
Fuel economy, combined: 6.7L / 100km
Expert input
If you had all the money in the world, what’s the one sneaker you would buy or create?
“There are a few shoes that have ‘grail’ status for me. But the one I have always wanted is the Nike x Patta x Parra Air Max 1 - Cherrywood. To get a pair in my size brand new is would cost me between Dh8,000 and Dh 10,000.” Jack Brett
“If I had all the money, I would approach Nike and ask them to do my own Air Force 1, that’s one of my dreams.” Yaseen Benchouche
“There’s nothing out there yet that I’d pay an insane amount for, but I’d love to create my own shoe with Tinker Hatfield and Jordan.” Joshua Cox
“I think I’d buy a defunct footwear brand; I’d like the challenge of reinterpreting a brand’s history and changing options.” Kris Balerite
“I’d stir up a creative collaboration with designers Martin Margiela of the mixed patchwork sneakers, and Yohji Yamamoto.” Hussain Moloobhoy
“If I had all the money in the world, I’d live somewhere where I’d never have to wear shoes again.” Raj Malhotra
UAE currency: the story behind the money in your pockets
More coverage from the Future Forum
Killing of Qassem Suleimani
The bio
Studied up to grade 12 in Vatanappally, a village in India’s southern Thrissur district
Was a middle distance state athletics champion in school
Enjoys driving to Fujairah and Ras Al Khaimah with family
His dream is to continue working as a social worker and help people
Has seven diaries in which he has jotted down notes about his work and money he earned
Keeps the diaries in his car to remember his journey in the Emirates
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Ticket prices
- Golden circle - Dh995
- Floor Standing - Dh495
- Lower Bowl Platinum - Dh95
- Lower Bowl premium - Dh795
- Lower Bowl Plus - Dh695
- Lower Bowl Standard- Dh595
- Upper Bowl Premium - Dh395
- Upper Bowl standard - Dh295
Abu Dhabi traffic facts
Drivers in Abu Dhabi spend 10 per cent longer in congested conditions than they would on a free-flowing road
The highest volume of traffic on the roads is found between 7am and 8am on a Sunday.
Travelling before 7am on a Sunday could save up to four hours per year on a 30-minute commute.
The day was the least congestion in Abu Dhabi in 2019 was Tuesday, August 13.
The highest levels of traffic were found on Sunday, November 10.
Drivers in Abu Dhabi lost 41 hours spent in traffic jams in rush hour during 2019
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