SOVEREIGN DEBT RESTRUCTURING | MASTERCLASS

A deep dive masterclass on sovereign debt restructuring, to be conducted virtually by Asian high yield bond expert Florian Schmidt.

30 June 2022 (Thu), 5pm Singapore/HK time

Abu Dhabi Commercial Bank (ADCB), National Bank of Kuwait (NBK) and Sharjah Islamic Bank reported strong results for the six months ended June.

  • ADCB reported a 76% jump in net profits to AED 2.52bn ($690mn) in 1H2021. Non-interest income rose 41% YoY to AED 840mn ($229mn) and cost to income ratio improved 150bp to 33.4% in Q2. Impairment charges were 1% higher to AED 678mn ($185mn). The bank’s NPL ratio stood at 5.86% vs. 5.16% in 1H2020. CAR and CET 1 ratios stood at 16.32% and 13.2%, up 1bp and 25bp YoY. ADCB’s bonds were stable – its 4.5% 2023s were at 105.8, yielding 0.93%
  • NBK reported a 45% YoY rise in H1 net profits to KWD 160.8mn ($534mn). Loans and advances grew 5.3% YoY to KWD 18.5bn ($61.5bn). Provisions for credit losses fell by 5% YoY to KWD 94mn ($313mn) while its NPL ratio rose 68bp to 2.45% during the same period. The bank reported its 2020 CAR and CET1 ratios at 18.4% and 16%. NBK’s 4.5% Perps were flat at 104.6, yielding 3.35%.
  • Sharjah Islamic Bank reported a rise in H1 net profits to AED 289.5mn ($79mn), up 15.2% YoY despite an increase of 58% in net impairment provisions to AED 127.8mn ($35mn). Net income on financing and investment products increased by 16.3% while expenses were flat. Its capital adequacy ratio (CAR) (Term of the Day, explained below) stood at 20.77%. The bank’s dollar bonds were flat with its 5% Perp at 104.6, yielding 3.73%
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