Daily Personal Finance Insights – Commercial property down
UAB aims to double SME business
United Arab Bank (UAB) aims to double its SME business in the next six months. They expect to do this by increasing the number of employees focused on the SME sector and providing simpler solutions, “from short term cash flow requirements met through business installment loans to working capital facilities and other simplified trade services.”
DP World reveals big profit growth and increased dividends
DP World announced strong financial results from its global portfolio of marine terminals for the 12 months to 31 December 2012. Profit attributable to owners of the company before separately disclosed items was a whopping US $555 million, 21% ahead of last year.
Overall the company said: “DP World delivered increased profit for the year of US $749 million following a strong year of operational performance from its global operations, prudent financial management and proactive management of assets, whilst continuing to invest in the future growth of the Company.”
Ordinary dividends were set at US $0.21 cents per share, 10% ahead of the prior year. The company also announced a special dividend of US $0.3 cents per share, providing for total dividends of US $0.24 cents per share.
Fitch factors in Sovereign support to UAE bank debt ratings
Fitch Ratings says it is seeing a sharp increase in banks in the GCC region looking to issue subordinated debt in the international markets. In this context, it is worth highlighting that Fitch's ratings for GCC banks' subordinated debt often factor in a high probability that sovereign support will be available for this debt class if and when required.
Fitch's criteria recognise that in certain jurisdictions (such as the UAE) the likelihood of sovereign support remains strong.
At the present time, in Fitch's opinion, GCC sovereigns are exceptional in terms of being highly supportive of their banking systems. This is reflected in the authorities' strong track record of support, the high degree of state (or ruling family) ownership and influence in the banks, and the strong hands-on control exercised by regulators.
Apartment sales up, villa and commercial units down
Emaar Properties' revenue from the sale of apartments more than doubled last year. Its latest accounts issued this week revealed the company generated revenue of 2.5 billion dirhams ($680.64 million) from sales of condominiums last year, compared with 1.1 billion dirhams in 2011.
However, Emaar's revenue from villa sales in 2012 dropped slightly to 937.1 million dirhams from 958.7 million dirhams. Income from the sale of commercial units and plots dropped significantly to 682.2 million dirhams compared with 2.7 billion dirhams in the prior-year.