Saudi banks witness 11% surge in loans to $716bn, fueled by corporate activities

RIYADH: Saudi Arabia’s Tadawul All Share Index dropped on Monday, losing 32.84 points, or 0.26 percent, to close at 12,377.03.  

The total trading turnover of the benchmark index was SR6.55 billion ($1.75 billion), as 65 of the listed stocks advanced, while 170 retreated.   

The MSCI Tadawul Index also dropped by 3.79 points, or 0.25 percent, to close at 1,541.82.  

The Kingdom’s parallel market Nomu lost 48.69 points, or 0.16 percent, to close at 31,056.38. This comes as 37 of the listed stocks advanced and 43 retreated.  

Mutakamela Insurance Co. was the best-performing stock of the day, with its share price surging by 4.88 percent to SR18.90.  

Other top performers included Saudi Arabian Cooperative Insurance Co., which saw its share price rise by 4.59 percent to SR18.70, and Saudi Cable Co., which saw a 3.30 percent increase to SR131.60.  

Arriyadh Development Co. rose 3.01 percent to SR35.95, while Al Mawarid Manpower Co. gained 2.87 percent to SR136. 

The National Co. for Glass Industries saw the steepest decline of the day, with its share price easing 3.72 percent to close at SR54.40. 

Elm Co. fell 2.84 percent to SR1,123, while Mouwasat Medical Services Co. dropped 2.78 percent to SR87.50. 

Bawan Co. also faced losses, with its share price dipping 2.75 percent to SR56.50, while Saudi Awwal Bank saw a 2.46 percent decline to settle at SR35.75. 

Saudi Tadawul Group Holding Co. announced that its subsidiary, Tadawul Advanced Solutions Co., also known as WAMID, has finalized the acquisition of the remaining 49 percent stake in Direct Financial Network Co., completing the regulatory requirements on Feb.2. 

The shares, previously owned by National Two Ventures, were acquired for SR220.5 million, making WAMID the sole owner of DirectFN. 

The transaction follows WAMID’s initial purchase of a 51 percent stake in DirectFN in May 2023 for SR134 million. 

With this latest acquisition, WAMID now holds full ownership of the financial technology company, aligning with Saudi Tadawul Group’s strategy to enhance its technological and financial services offerings. 

Saudi Tadawul Group Holding Co.’s share price saw a slight 0.76 percent dip on Monday to settle at SR209.80. 

Riyad Bank announced its financial results for 2024, posting a 15.9 increase in net profit, reaching SR9.32 billion, up from SR8.04 billion in 2023. 

The growth was driven by an 18.16 percent rise in total income from special commissions, which reached SR21.62 billion, supported by higher income from loans and investments. 

Total operating profit rose 8.71 percent to SR17.28 billion, bolstered by increases in fee income, exchange income, and gains on non-trading investments. 

Operating expenses related to credit losses and asset impairments dropped 17.2 percent to SR1.63 billion, reflecting improved asset quality. 

Assets grew by 16.42 percent to SR450.37 billion, with loans and advances rising 16.65 percent to SR320.08 billion. 

Client deposits also increased significantly, up 20.21 percent to SR306.42 billion. Earnings per share rose from SR2.58 in 2023 to SR3.01 in 2024. 

Riyad Bank saw a 0.34 percent increase in its share price on Monday to reach SR29.60. 

LONDON: Oil prices rose on Monday after US President Donald Trump imposed tariffs on Canada, Mexico and China, raising fears of supply disruption, though gains were capped by concern over what could be an economically damaging trade war.

Brent crude futures rose $1.28, or 1.7 percent, to $76.95 a barrel by 3:32 p.m. Saudi time after touching a high of $77.34.

US West Texas Intermediate crude futures were up $1.89, or 2.6 percent, at $74.42 after touching their highest since Jan. 24 at $75.18.

Trump’s sweeping tariffs on goods from Mexico, Canada and China kicked off a trade war that could dent global growth and reignite inflation.

The tariffs, which will take effect on Feb. 4, include a 25 percent levy on most goods from Mexico and Canada, with a 10 percent tariff on energy imports from Canada and a 10 percent tariff on Chinese imports.

“The relatively soft stance on Canadian energy imports is likely rooted in caution,” Barclays analyst Amarpreet Singh said in a note.

“Tariffs on Canadian energy imports would likely be more disruptive for domestic energy markets than those on Mexican imports and might even be counterproductive to one of the president’s key objectives — lowering energy costs.”

Goldman Sachs analysts expect the tariffs to have limited near-term impact on global oil and gas prices.

Canada and Mexico are the top sources of US crude imports, together accounting for about a quarter of the oil US refiners process into fuels such as gasoline and heating oil, according to the US Department of Energy.

The tariffs will raise costs for the heavier crude grades that US refineries need for optimum production, industry sources said.

Gasoline pump prices in the US are certainly expected to rise with the loss of crude for refineries and the loss of imported products, said Mukesh Sahdev at Rystad Energy.

Trump has already warned that the tariffs could cause “short-term” pain for Americans.

US gasoline futures jumped 2.5 percent to $2.11 a gallon after touching the highest level since Jan. 16 at $2.162.

“It is clear that the tariffs will have a negative effect on the global economy, with physical markets set to get tighter in near term, pushing crude prices higher,” said Panmure Liberum analyst Ashley Kelty.

Investors will also be watching for news from an OPEC+ meeting on Monday, with expectations that the oil producer group will stick to its current plan of gradual increases to output.

Rystad’s Sahdev added that tariffs, if kept for long, have the potential to cause production losses in Canada and Mexico, which could help OPEC+ to unwind output curbs.