The SABB/HSBC Emerging Markets Index (EMI), a monthly indicator derived from the PM surveys, fell for the fourth month running to 50.3 in March, from 51.1 in February, indicating only a marginal increase in private sector output across global emerging markets.
Notably, output contracted since February in three of the four largest emerging economies. China posted a marginal decline for the second month running, while India slipped back into contraction. Meanwhile, Russian private sector output fell at the fastest rate since May 2009.
Emerging market manufacturing output fell for the first time in eight months in March, albeit marginally. Meanwhile services activity rose at the weakest rate since July 2013. A faster increase in Chinese service sector activity was offset by declines in Russia and India.
New business growth across global emerging markets eased to a fractional pace in March, and backlogs of work continued to decline. Subsequently, employment growth remained weak.
Input price inflation in emerging markets hit a nine-month low in March. Russia bucked this downward trend, seeing the strongest rise in input prices in three years – mainly due to the weakening ruble. In contrast, China posted a fall in average input prices for the third month running.
The March data from the SABB/HSBC index signalled declines in output and new orders in South Africa’s private sector amid reports of disruptions caused by the mining strike and unusually bad weather. However, the rates of contraction were indicative of only marginal reductions. The fall in new orders was driven by lower domestic demand, while new export orders rose for a second successive month.
In the Middle East, PMI data signalled the continued strong expansion of Saudi Arabia’s non-oil private sector economy in March. Growth was supported by improved demand from abroad, with the rate of expansion a joint-series high amid evidence of an improvement in demand from key export exports.
The UAE’s non-oil private sector companies reported a steep rise in output during March, with the pace of expansion accelerating to the highest since data collection began in August 2009. New order growth also picked up, falling just short of November’s record high. Meanwhile, employment levels rose further and buying activity increased sharply.
Egypt’s non-oil producing private sector companies reported a fractional rise in output in March, while new order intakes declined for the second time in the past three months. Employment levels continued to fall, although at the weakest pace in a year-and-a-half. Meanwhile, companies reduced their output charges, despite an accelerated increase in input costs.
The Saudi British Bank ("SABB") recorded a net profit of SAR 1,081 million for the quarter ended 31 March 2014. This is an increase of SAR 133 million or 14.0% compared to SAR 948 million for the same period in 2013, and an increase of SAR 105 million or 10.8% compared to SAR 976 million for three months ended 31 December 2013.
Operating income of SAR 1,621 million for the quarter ended 31 March 2014 – an increase of SAR 183 million, or 12.8 %, compared with SAR 1,438 million at 31 March 2013.
Customer deposits of SAR 137.0 billion at 31 March 2014 – an increase of SAR 14.9 billion, or 12.2 %, compared with SAR 122.1 billion at 31 March 2013.
Loans and advances to customers of SAR 109.9 billion at 31 March 2014 – an increase of SAR 8.7 billion, or 8.6 %, from SAR 101.2 billion at 31 March 2013.
The bank's investment portfolio increased by SAR 5.7 billion to SAR 38.1 billion at 31 March 2014 - an increase of 17.6 % from 31 March 2013.
Total assets increased by SAR 16.6 billion to SAR 175.4 billion at 31 March 2014 - an increase of 10.5 % from 31 March 2013.
Earnings per share is SAR 1.08 against SAR 0.95 for the corresponding quarter of the previous year.
Sheikh Khaled Olayan, Chairman of SABB, said: "SABB’s strategy of diversifying its income streams and controlling its costs has enabled the bank to record a strong financial performance for the quarter ended 31 March 2014. SABB’s continued focus on risk management, asset quality and maintaining strong capital and liquidity positions continues to provide SABB with growth opportunities in line with our strategic objectives."
"We would again like to thank our customers for their continued support and our staff for their commitment and contribution to the bank's success."
The SABB/HSBC Emerging Markets Index (EMI), a monthly indicator derived from the PMI™ surveys, fell for the third month running to 51.1 in February, from 51.4 in the first month of 2014. That signaled the weakest growth in global emerging market output since last September, with the EMI also remaining well below its long-run trend level of 54.0.
The moderation in growth in the latest period reflected the weakest rise in manufacturing output in five months, in contrast to January when the slowdown reflected weaker expansion in the service sector. Services activity in emerging markets rose at a slightly stronger rate in February, albeit one that remained relatively weak.
Manufacturing output in emerging markets was weighed down by contractions in China, Russia and South Korea. Growth slowed in Mexico and remained weak in Brazil. In contrast, Poland and the Czech Republic posted sharp increases, as did Taiwan.
Conditions are likely to remain subdued in March, with incoming new business rising at the slowest rate in five months. Reflecting this lack of pressure on capacity, employment was broadly unchanged over the month and backlogs of work declined further. Finally, inflationary pressures remained weak overall, despite evidence of cost pressures in Brazil, Russia, Turkey and the Czech Republic linked to exchange rates.
February PMI data indicated the continued expansion of Saudi Arabia’s non-oil private sector economy with output, new orders, and employment all continuing to rise, albeit at slower rates. Meanwhile, in the United Arab Emirates there were solid expansions in output and new orders at non-oil private sector companies. New export business rose at the quickest pace in the series history and input costs increased at the slowest pace for six months.
SABB/HSBC Emerging Markets Index report signaled renewed expansions in output and new orders at Egyptian non-oil producing private sector firms in February, after declines were reported in January. But new export business fell for the first time in four months, linked to unusually bad weather in export markets and shipping problems.
Private sector output growth in South Africa hit a ten-month high in February, but remained modest overall. New business increased at the fastest rate since November 2012, and new export orders rose for the first time in three months. Notably, average input prices and charges both increased at the fastest rates in the 32-month survey history.
The Saudi British Bank "SABB" has published the results of the headline SABB HSBC Saudi Arabia Purchasing Managers' Index (PMI) for February 2014 – a monthly report issued by SABB and HSBC. It reflects the economic performance of Saudi Arabian non-oil producing private sector companies through monitoring a number of variables, including output, orders, prices, stocks and employment.
February data indicated the continued expansion of Saudi Arabia's non-oil private sector economy, with output, new orders, and employment all continuing to rise. However, growth rates were a little softer.
Latest data showed that output continued to rise during February, supported by ongoing increases in new orders. Rates of expansions remained sharp, albeit lower than the survey averages. Study participants commented that economic conditions remained supportive for conducting and securing new business, both at home and abroad. February's study results showed that export orders strengthened during the latest survey period, with the rate of growth accelerating to the sharpest for four months.
A number of companies responded to increased workloads and sustained growth in new business by adding to their payrolls. Latest data showed that staffing levels increased for the twenty-ninth successive month. February's net gain in staffing levels was, however, the slowest recorded in recent months.
Higher business requirements also encouraged higher purchasing activity in February. Growth was sharp, as companies not only sought to service current projects but also to build stock in anticipation of continued growth. Latest data showed that inventories of purchases rose to the greatest degree for 11 months.
In spite of continued growth of demand for inputs, suppliers to Saudi Arabia's non-oil private sector economy were again able to exceed average delivery times compared to a month ago. SABB/HSBC study participants commented that vendors improved their performance in response to demands for faster deliveries.
Finally, on the price front, output prices were raised at a modest, but accelerated pace in February. The rate of price increase was the sharpest recorded in a year as companies responded to further rises in average input prices.
Overall input costs continued to rise at a marked pace, albeit one that was the slowest for seven months. Purchase price increase was slightly softer, while average salaries rose to the weakest degree since last September. Where wages were increased, it was to mainly compensate.
SABB was named the winner of "Best Private Banking Services" award for the year 2014, which was offered by Euromoney magazine. The award was offered to SABB for the third consecutive year by the prestigious magazine.
Euromoney magazine’s private banking awards are considered the most prominent recognition in the area of wealth management and it covers over 60 countries each year. Winning the award indicated a high degree of excellence achieved in a competitive environment that can only be attained through a well-thought strategy and meticulous execution that positions the client to be the sole focus of overall business operations.
Commenting on winning the Euromoney awards, Naif Alabdulkareem, General Manager of Branches and Wealth Management at SABB, said "We are delighted to be selected for this prestigious acknowledgment. SABB will continue to be a pioneer in the private banking field, as we continue to seek all means possible to secure the highest client satisfaction levels."
The Saudi British Bank (SABB) has received the "Best Commercial Bank" award in a ceremony held in Dubai recently. The awards event was organized by the UK-based International Finance Magazine.
The criteria utilized to arrive at the winners included profit increases, growth in number of clients, ranges of products offered, innovative product lines, CSR activities, as well as the brand image of the company.
Mohammed Bindawood, General Manager of Commercial Banking at SABB, said: "we are delighted to get this important recognition. At SABB, we seek to understand our clients’ needs thoroughly to better address their needs. An optimal client experience is a central goal for us, as we continue to work towards being the most reliable, knowledgeable, and capable banking partner in the market."
Saudi Company for Tools and Hardware ("SACO"), a pioneer in the hardware retail and wholesale business, and the largest total-solution home improvement superstores in Saudi Arabia, has appointed HSBC Saudi Arabia as financial adviser, lead manager and underwriter for its planned Initial Public Offering.
Established in 1985, SACO currently operates 21 retail outlets, including 3 SACO World superstores, in 12 cities throughout the Kingdom, with over 45,000 different products on display in stores ranging from 2,500 to 24,000 sqm and has over 1,900 employees.
Khaled Al-Hamidi, the Chairman of SACO, stated "We are proud to announce our shareholders’ decision to file for listing SACO on the Tadawul Stock Exchange; this is a strategic milestone in our continued development journey. We are aiming for an efficient and successful process in accordance with applicable regulations, and are excited to offer Saudi investors and citizens the opportunity to participate in and be part of the SACO success story".
Sameer Al-Hamidi, the CEO of SACO, said "SACO is among the most innovative companies in its field throughout the Kingdom, offering its customers a unique one-stop-shop experience with the widest products range at competitive prices. As the exclusive dealer and partner in Saudi Arabia for numerous global brands, SACO offers quality merchandise to its customers from all over the world. SACO has achieved outstanding growth over the last years and has developed a significant and growing market share in the Saudi retail sector".
He added: "This IPO will be a major step forward in our expansion strategy, and we are confident that HSBC Saudi Arabia, with its track-record and reputation as a leading investment company in the Kingdom and internationally, will deliver a successful and seamless IPO process for SACO".
Walid Khoury, the CEO of HSBC Saudi Arabia Ltd, stated "We are delighted to be selected to lead the IPO of SACO, which we believe will be an excellent addition to the Saudi financial markets. This is another testament to our unparalleled track-record in Saudi Arabia, with 20 completed IPOs and equity issues since 2003, based on our unique combination of a strong Saudi-based team supported by the global HSBC platform providing world-class sector expertise".
SABB Takaful’s line of Family Takaful products won an award -for the second time in a row- at the MENA Insurance Awards which was held recently in Dubai. SABB Takaful competed for the award with global providers of conventional insurance, as well as Takaful companies, from 22 Middle Eastern and North African countries.
Winning the award came after a careful consideration of candidates by a panel of independent and world-renowned industry experts, based on clear criteria such as market share growth and quality of product offerings. The "MENA Insurance Awards" were organized by the MENA Insurance Review.
Mr. Yousef Alburshaid, Chairman of SABB Takaful, said "We are delighted by the selection of SABB Takaful for this prestigious award. Our diverse offerings seek to address our client needs in a comprehensive manner. We are committed to promoting a culture of family Takaful to financially and socially improve the standard of living of our clients, while operating in full harmony with Islamic values and principles."
HSBC Saudi Arabia Limited has won "Nine" awards including the coveted 'Saudi Asset Manager of the Year' award for its performance over the year 2013 at the MENA Fund Manager Performance Awards ceremony held recently. The MENA Fund Manager Performance Awards are presented annually based on the performance track record of the asset managers in the GCC region and the ceremony attracts the single largest gathering of the region's asset managers.
In addition to the Saudi Asset Manager for the Year, HSBC Saudi Arabia won the following awards:
HSBC GCC Equity Fund for GCC Equity fund – over $30m 1 & 3 Year performances.
HSBC Saudi Construction and Cement Companies fund for Sector fund for 1 & 3 Year performance
HSBC Saudi Freestyle Equity Fund for Best Saudi Equity fund
HSBC Saudi Freestyle Equity Fund for Best Shariah Compliant Equity fund
HSBC Saudi Companies Equity fund for Best Saudi Equity fund – 3 Year performance
HSBC Saudi Freestyle Equity Fund for Best New Comer fund.
Walid Khoury, the Chief Executive Officer of HSBC Saudi Arabia Limited said: "This is a remarkable achievement for HSBC as no other regional firm has ever won as many awards in one year. HSBC Saudi Arabia is not only the best asset manager in Saudi but also in the MENA region as a whole."
Osama Shaker, Managing Director & Head of Financial Markets at HSBC Saudi Arabia commented: "We are extremely pleased to have won nine awards which reflects our strong commitment to deliver superior investment products and performance. We strive to always deliver excellent investment returns to our clients via our dedicated team of investment professionals by offering comprehensive and unparalleled investment solutions and services."
The Saudi British Bank (SABB) has been named by Global Finance magazine as the “Best Trade Finance Bank” in Saudi Arabia for 2014. This is the 6th consecutive year that SABB has picked up this coveted award, widely acknowledging SABB as the preeminent trade finance bank in the Kingdom.
The recognition from Global Finance magazine comes after an assessment of transaction volumes, scope of global coverage, customer service, competitive pricing and innovation of the leading trade finance providers in the Kingdom. This also takes into account feedback from key decision makers in multinational companies globally, alongside traditional input from industry analysts, corporate executives and technology experts.
In 2013, SABB continued its focus on client service, product innovation, and the development of trade opportunities for clients. During the year, SABB successfully rolled out a number of key initiatives directed towards helping its clients grow their trade-related businesses. SABB provides unrivalled global connectivity through its association with HSBC Group, and a range of sophisticated and customized conventional and Sharia-compliant trade finance solutions to meet growing trade and supply chain needs of its clients.
Commenting on winning the award, Mohammed Bindawood, General Manager of Commercial Banking at SABB, stated "Customer service and experience remains a priority for us and we are delighted to win this award and to be recognized as the leading trade finance bank in the Kingdom. The award serves to highlight that we continue to lead from the front in providing innovative and customized solutions for the increasingly diverse, challenging and complex trade and supply chain needs of our clients and we are proud to be recognized by them and the market in this respect".
The Saudi British Bank - SABB recorded a net profit of SAR 3,774 million for the year ended 31 December 2013. This is an increase of SAR 534 million or 16.5% compared to SAR 3,240 million for the same period in 2012. SABB recorded a net profit of SAR 976 million for the three months ended 31 December 2013, an increase of SAR 161 million or 19.6%, compared to the three months ended 31 December 2012, which amounted to SAR 815 million.
Operating income of SAR 5,815 million for the year ended 31 December 2013 – an increase of SAR 649 million, or 12.6%, compared with SAR 5,166 million for the same period in 2012.
Customer deposits of SAR 139.0 billion at 31 December 2013 – an increase of SAR 18.6 billion, or 15.4%, compared with SAR 120.4 billion at 31 December 2012.
Loans and advances to customers of SAR 106.1 billion at 31 December 2013 – an increase of SAR 10.0 billion, or 10.4%, from SAR 96.1 billion at 31 December 2012.
The bank’s investment portfolio totaled SAR 37.4 billion at 31 December 2013, an increase of SAR 9.8 billion, or 35.6%, from SAR 27.6 billion at 31 December 2012.
Total assets were SAR 177.3 billion at 31 December 2013, compared with SAR 156.7 billion at 31 December 2012, an increase of 13.2% or SAR 20.6 billion.
Earnings per share is SAR 3.77 for the year ended 31 December 2013 against SAR 3.24 at 31 December 2012.
Sheikh Khaled Olayan, Chairman of SABB, said: "SABB’s strategy of diversifying its income streams and controlling its costs ensured another strong financial performance in 2013. SABB’s continued focus on risk management, asset quality and maintaining strong capital and liquidity positions provides SABB with growth opportunities in line with our strategic objectives."
"We would again like to thank our customers for their continued support and our staff for their commitment and contribution to the bank's success."