Foreign bank market – Arab Center Sun, 20 Nov 2022 19:54:34 +0000 en-US hourly 1 Foreign bank market – Arab Center 32 32 Breakthrough on climate compensation and 7 more takeaways from COP27 Sun, 20 Nov 2022 17:57:36 +0000

(Bloomberg) — They finally got there. After dawn on Sunday morning in Egypt, cloudy-eyed ministers adopted a final agreement for COP27 and completed more than two weeks of UN climate negotiations in the Sinai Peninsula.

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The agreement included a historic provision to create a fund to help the poorest countries cope with the damage caused by climate change, and this result was rightly celebrated by nations on the front lines of a world that heats. “A mission of 30 years of preparation has been accomplished,” said Molwyn Joseph, Minister of Antigua and Barbuda and Chairman of the AOSIS Group of Small Island Nations.

But beyond loss and damage – the COP-world term for paying for climate disasters – the final deal was a distinct disappointment for those who wanted to raise the ambitions of last year’s Glasgow accord. The statement did not include a commitment to expand the pledge to phase out coal emissions to cover all fossil fuels, and there was no reference to peaking global greenhouse gas emissions by 2025.

The endgame was clearly tough for the European Commission’s climate chief, Frans Timmermans, who had taken center stage at the summit, offering a big deal on loss and damage in return for greater ambition in on emissions, then threatening a belated walkout by the European Union.

In the end, the EU and its allies had to make do with a few technical changes to the so-called mitigation work programme. Now that the books are closed on COP27, here’s a look at eight key takeaways from two weeks of climate talks involving nearly 200 countries.

1. A new fund for loss and damage

Climate change creates inequalities and exacerbates them. Rich countries have derived their wealth from fossil fuels, leaving poor countries that have not benefited from these emissions with huge bills due to the resulting climate impacts. After decades of calls to compensate climate victims in developing countries, COP27 finally resulted in an agreement to create a fund that would address loss and damage.

But this breakthrough comes with huge question marks. No money was actually committed in Sharm el-Sheikh, and the rules for the operation of the fund were to be decided at next year’s COP28 in the United Arab Emirates. Henry Kokofu, Ghanaian politician and head of the Climate Vulnerable Forum, warned that without further concrete action there is a risk of simply creating “an empty bank account”.

2. Possible changes for multilateral lenders

For the first time, a COP meeting included a call to reform the global financial architecture so that it is better aligned with climate goals. The idea is to adjust the mandates of multilateral development banks such as the World Bank and international financial institutions, such as the International Monetary Fund, to ensure a greater flow of funding for energy transition projects and efforts. adaptation to global warming.

“The time has come,” said Laurence Tubiana, chief executive of the European Climate Foundation. “Climate impacts are beginning to be understood as a macroeconomic risk.”

3. The struggle for serious things

The issue that delayed the negotiations and made COP27 the second longest running UN climate summit was the “mitigation work programme”. The idea is to ensure that countries set clear targets, plans and actions to reduce emissions at the rate needed to meet climate goals. Commitments so far have not followed the same standard, with countries using different benchmarks and baselines for their targets. Without a common system, these promises may not turn into real emissions reductions.

Climate-lead countries wanted to run the program until 2030. But opposition from laggards led to a compromise to run it until 2026, with a chance to extend it. If the program succeeds, it could have stronger implications than countries simply agreeing to political declarations of phasing out all fossil fuels.

4. Weak rules for carbon markets

Countries agreed at COP26 to create the rules that would allow nations to trade carbon credits. This means that Norway, for example, could pay to preserve Indonesian forests and, in return, eliminate emissions from the Norwegian carbon registry. At COP27, negotiators presented a more detailed framework on how such a carbon market would work, including allowing companies to buy credits from governments.

But experts have warned that the rules are still not strict enough. “The spirit of Glasgow’s carbon market has turned into the compensatory ghost of Sharm el-Sheikh, which is likely to haunt effective climate action for years to come,” said Sam Van den plas, director of policy at Carbon. Market Watch.

5. The 1.5°C target remains under serious threat

Despite attempts by major powers such as the United States, India and the European Union, the Sharm el-Sheikh accord failed to meet emissions reduction ambitions. This could mean the world misses the 1.5 degree Celsius warming target enshrined in the 2015 Paris Agreement. Calls for phasing out all fossil fuels (not just coal) and peaking Global emissions by 2025 (which is likely to happen anyway, according to the International Energy Agency) have been rejected by many oil-exporting countries.

While phasing out all fossil fuels didn’t make it to final text, momentum built around an idea that wasn’t even on the cards before the summit. As many as 80 countries now support it, Timmermans said, with the EU and others expected to press the issue over the coming year.

As the world grapples with an energy crisis and high fossil fuel prices fill the coffers of major producers, the political clout of the carbon powerhouses was on full display at COP27. Annalena Baerbock, Germany’s foreign minister, expressed frustration at having “been blocked by a number of big emitters and oil producers”. This fight is likely to get tougher as COP28 heads to the United Arab Emirates, an oil and gas giant.

6. Unfreeze US-China relations

The United States and China resumed working together on climate at COP27. US climate envoy John Kerry and his counterpart Xie Zhenhua said on Saturday they had resumed their formal cooperation, which was suspended after House Speaker Nancy Pelosi’s visit to Taiwan earlier this year.

7. Methane dynamics continue

More countries have signed up to the methane pledge launched in Glasgow last year. There are now 150 nations that have pledged to cut emissions of the super-powerful greenhouse gas by 30% by the end of the decade. Even China said it had drafted a plan to reduce methane emissions, although it did not join the global pledge.

8. Show some money

A consistent theme in these discussions has been “show me the money” – or climate finance – for developing countries, and there has been real progress in recent weeks on financing cleaner energy transitions. At COP27, two new funding agreements from the Partnership for a Just Energy Transition were announced, moving Vietnam and Indonesia away from coal power. South Africa has also won final donor approval on its own $8.5 billion JETP plan and Indonesia is set to strike an even bigger $20 billion deal to secure itself. away from coal.

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Zee Business Stock, Trading Guide: 10 things to know before the market opens on November 18, 2022 Thu, 17 Nov 2022 18:16:04 +0000

Zee Business Stock and Trading Guide: Indian markets remained subdued and fell nearly half a percent amid mixed readings. The Nifty index traded lackluster in a tight range for most of the session, but the decline over the past half hour pushed the index into the red.

Nifty and Sensex settled at 18,343.9 and 61,750, each down around 0.4%. The decline was widespread in which automotive, media and IT lost more than one percent each. The broader indexes also remained under pressure and fell nearly half a percent each on Thursday.

Here’s a list of things to watch out for on November 18, 2022

What should investors do?

The recent structure of the market indicates the possibility of profit taking or consolidation ahead. However, we expect Nifty to hold the 17800-18100 zone.

The prevailing underperformance on the broader front is already hurting sentiment and could deteriorate further during the corrective phase. We therefore reaffirm our desire to remain selective and to focus on the sizing of positions.

– Ajit Mishra, Vice President – Research, Religare Broking Ltd

Key support and resistance levels for Nifty50:

The Nifty50 closed 0.36% higher at 18,343. Key pivot point (Fibonacci) support for the index is placed at 18318.14, 18293.43 and 18253.43, while resistance is placed at 18398.13, 18422.84 and 18462.83.

Key support and resistance levels for Nifty Bank:

Nifty Bank closed 0.18% higher at 42,458. Key pivot point (Fibonacci) support for the index is placed at 42384.64, 42324.17 and 42226.3, while resistance is placed at 42580.37, 42640.84 and 42738.7.

Gross open interest:

Open Interest means the number of open or open contracts in NSE Futures at any given time. A seller and a buyer together create a contract.

Here, the gross values ​​of open interest positions taken by the four participants, i.e. Clients are Clients are individual retail investors who invest in derivatives, DIIs are domestic individual investors, FIIs are retail investors foreign institutional and Pro are the owners and brokerage firms that trade. in their own name.

Image source – Stockedge

Actions in the news:

CSB Bank: Reserve Bank of India approves appointment of Bhama Krishnamurthy as part-time chairman

Vedanta Board meeting on November 22 to consider the third interim dividend for FY23.

Fortis Healthcare: SEBI urges IHH to secure an order from Delhi HC to proceed with the open offer

BEL signs MoU with AWEI to meet domestic and export market needs

Ultratech Cement starts operations at the company’s third Birla White Wall Care Putty plant in Nathdwara, Rajasthan with a capacity of 4 lakh mt per year at a total cost of Rs 187 cr

Securities transaction

Astral Limited: ex-date interim dividend of 120% at Rs 1.25 per share

Emami: ex-date interim dividend of 400% at Rs 4 per share

ESAB India: ex-date interim dividend of 300% at Rs 30 per share

HAL: ex-date interim dividend of 200% at Rs 20 per share

Info Edge: Interim dividend ex-date 100% at Rs 10 per share

La Opala RG: Interim dividend ex-date 100% at Rs 2 per share

MSTC: ex-date interim dividend of 55% at Rs 5 per share

FII activity on Thursday:

Foreign portfolio investors (REITs) remained net buyers at Rs 618.37 crore in Indian markets while domestic institutional investors (DIIs) were net buyers at Rs 449.22 crore, preliminary data showed on the NSE.

FII Index and F&O Stock:

Image source – Stockedge


One 97 Communications Ltd: SVF India Holdings (Cayman) Limited has sold 2,93,50,000 shares of the company at a weighted average price of 555.67 rupees per share on the NSE, according to wholesale trading data.

Hi-Tech Pipes Limited: Mahesh Dinkar Vaze has sold 1,35,000 shares of the company at a weighted average price of Rs 596.61 per share on the NSE, according to wholesale trading data.

CMS Info Systems Limited: Purvi Prabhatchandra Jain has sold 56,067 shares in the company at a weighted average price of Rs 235.22 per share on the NSE, according to wholesale trading data.

Amiable Logistics (I) Ltd: Prakashbhai Mahendrabhai Dave bought 17,600 shares in the company at a weighted average price of Rs 143.2 per share on the NSE, according to wholesale trading data.

Stocks under F&O ban on NSE

Balrampur Chini, BHEL, Delta Corp, GNFC, Sun TV and Indiabulls Housing Finance are placed under the F&O ban for Friday. Blackout securities in the F&O segment include companies in which the security has exceeded 95% of the market-wide position limit.

Foreign banks consider bilateral settlement agreements Mon, 14 Nov 2022 19:20:00 +0000

Foreign banks are considering alternative settlement arrangements and seeking to appoint sub-custodians who can handle all fixed income transactions in India, three senior officials said.

This decision follows the decision of the European Securities and Markets Authority to derecognise six Indian central counterparties (CCPs), including Clearing Corp. of India Ltd (CCIL) and Indian Clearing Corp., from April 30, 2023. This effectively means that European banks cannot settle their transactions. through clearinghouses and may have to seek bilateral settlement agreements if the matter is not resolved.

Central counterparties provide infrastructure that contributes to safer, more efficient and more transparent global financial markets.

Under the proposed arrangement, banks will have to deal with sub-custodian banks, which can trade directly on the CCIL platform to assist banks that are not permitted to trade directly on the CCIL system. “In stock markets, if you have an account with a brokerage firm, you have a relationship with the firm, not with the stock exchange. We are considering a similar arrangement for all fixed income transactions,” said a senior banker at a foreign bank seeking anonymity. “But we need to check if all regulators are kosher with this arrangement,” he added.

This arrangement will not only help foreign banks bypass the straight-through process with clearing houses, but they will also gain access to the trading and clearing platform if the sub-custodian model works. That said, the talks are in the discussion stage and a formal proposal has yet to be made to the Reserves. Bank of India or CCIL, the second official said, also requesting anonymity.

“Currently, CCIL has a tiered structure where direct members and clients of clearing members in certain segments can operate. Maybe the banks are considering such an arrangement,” he said.

The impasse between Indian regulators and the European Securities and Markets Authority over the powers of supervision and audit of clearing companies after the derecognition of six Indian CCPs is raging. Indian regulators, such as the Securities and Exchange Board of India (Sebi), RBI and the International Financial Services Centers Authority (IFSCA) are not comfortable leaving scrutiny and inspection by foreign market regulators, as this could result in a cession of land to an authority that is exercising extraterritorial jurisdiction over the activities of Indian CCPs. European banks are concerned about such actions as they will not be able to settle foreign exchange, gilts, currencies and interest rate derivatives trades made on Indian exchanges. If the issue is not resolved by April 30, 2023, foreign lenders will have to start unwinding their positions through central counterparties. Banks also risk losing customers if foreign portfolio investors consider doing business with other custodian banks where there is regulatory certainty.

In addition, the removal of CCIL as a counterparty may lead to a higher capital requirement for transactions compliant with Basel standards. In addition, US banks are not involved in swap derivatives trading on the CCIL because the US Commodity Futures Trading Commission has not recognized the clearing house as a derivatives clearing organization. These transactions are therefore carried out bilaterally by banks outside the framework, with the CCIL acting as counterparty.

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The Rupee gains 45 paise to close at 81.47 against the US Dollar Wed, 09 Nov 2022 10:42:15 +0000

The rupee appreciated 45 paise to close at 81.47 (provisional) against the US dollar on Wednesday amid falling crude oil prices, a weaker dollar and continued inflows of foreign funds.

In the interbank forex market, the local unit opened at 81.43 and saw an intraday high of Rs 81.23 and a low of Rs 81.62 during the session.

The local unit eventually stabilized at 81.47 against the US currency, registering a rise of 45 paise from its previous close.

On Monday, the rupee had settled at 81.92 against the US dollar. The foreign exchange market was closed on Tuesday due to “Gurunanak Jayanti”.

Meanwhile, the dollar index, which gauges the strength of the greenback against a basket of six currencies, rose 0.18% to 109.83.

Brent futures, the global oil benchmark, fell 0.64% to $94.75 a barrel.

“The rupiah continued to strengthen as the broader dollar saw selling pressure at higher levels. The greenback continued to remain weighed down as well ahead of the US midterm election results,” said Gaurang Somaiya, Forex and Bullion Analyst, Motilal Oswal Financial Services.

Some market participants are suggesting a strong chance of Republicans securing a majority in the House and a close race for control of the Senate.

“We expect USD-INR (spot) to trade sideways and range between 81.30 and 81.80,” Somaiya said.

On the domestic stock market front, the 30-stock BSE Sensex fell 151.60 points or 0.25% to end at 61,033.55, while the broader NSE Nifty fell 45.80 points or 0. .25% to 18,157.00.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets as they bought shares worth Rs 1,948.51 crore on Monday, according to data from the exchange.

Top 5 things to watch in the markets in the coming week Sun, 06 Nov 2022 11:04:04 +0000

By Noreen Burke — Thursday’s U.S. inflation data could provide some insight into when the Federal Reserve might begin to ease the pace of rate hikes. The outcome of Tuesday’s U.S. midterm elections, where congressional oversight is at stake, will also be a focus. China to release trade and inflation data as Beijing’s zero COVID policy continues to wreak economic damage. Meanwhile, the UK is due to release GDP data on Friday which is expected to show the economy has entered a recession. Here’s what you need to know to start your week.

  1. US Inflation Data

The United States is due to release inflation data for October on Thursday, with market watchers on the lookout for indications that price pressures are easing after a series of outsized rate hikes by the Fed.

Fed Chairman Jerome Powell said last week that policymakers are likely to take higher-than-expected rates in their bid to rein in soaring inflation, so a warmer-than-expected reading would likely cement stocks. expectations that the Fed would continue its hawkish trajectory.

But a colder-than-expected reading could cause markets to focus more on the higher probability of a recession.

Economists expect the annual inflation rate to reach and the monthly inflation rate to increase by .

  1. US midterm elections

The United States is gearing up for Tuesday’s midterm elections, where control of Congress and President Joe Biden’s agenda for the remaining two years of his term are at stake.

Republicans are leading in the polls, and many analysts believe the likely outcome will be a divided government, with GOP control of the House of Representatives and possibly the Senate during the second half of Biden’s term.

Democrats’ electoral hopes have been hammered by voter concerns over high inflation, and Biden’s public approval rating has remained below 50% for more than a year, hitting 40% in a recent Reuters/Ipsos poll. .


Wall Street rebounded on Friday to end a soft week, but the rally in troubled stocks will be tested in the coming days by the double whammy of inflation data and US intermediaries.

Despite Friday’s gains, dropping 1.39% for the week to snap a four-week winning streak, losing 3.34% for the week and dropping 5.65%, its biggest drop weekly as a percentage since January.

Inflation data has led to huge market moves this year as consistently high readings have forced investors to raise their expectations for the Fed

rate hikes


Analysts said a surprise Democrat victory could stoke concerns about increased fiscal spending and the outlook for inflation.

According to Reuters data, U.S. stocks have performed better during a period of divided government, with an annual average S&P500 returns of 14% in a divided Congress and 13% in a Republican-held Congress under a Democratic president, compared to 10% when the Democrats controlled both the presidency and Congress.

  1. China data

Chinese and Hong Kong stocks jumped sharply on Friday amid speculation that Beijing could soon ease its strict zero-COVID restrictions, but officials said on Saturday the country was sticking to its policy.

China is due to release data on , and in the coming week, which should point to continued weakness in the world’s second-largest economy as COVID dampens demand.

Beijing is also due to release data on foreign exchange reserves, which are running low as authorities seek to shore up the yuan which is on track for its worst year since 1994.

Falling for eight consecutive months, China’s foreign exchange reserves are a hair’s breadth from the psychological level of $3 trillion amid broad dollar strength since the Fed began raising rates in March.

  1. UK GDP

The UK is due to release preliminary third-quarter growth data on Friday, which is expected to show the economy contracted in the three months to September.

Last Thursday, the Bank of England aggressively sought to combat the risks of an inflation rate above 10% and warned of a long recession.

The BoE expects inflation to hit a 40-year high of around 11% in the current quarter, but Britain has already entered a recession that could potentially last two years – longer than in the financial crisis of 2008-09.

–Reuters contributed to this report

‘Stars aligned’ for Palestinian startups, say Gulf investors Wed, 02 Nov 2022 22:51:24 +0000

About 20 Palestinian startups traveled to Dubai this week for the fourth edition of the International Conference on Entrepreneurship in Palestine (ICEP), to present their business ideas to investors.

ICEP participant Christina Ganim is co-founder of Kenz, an e-commerce platform selling intimate apparel for women in the Gulf. “We are currently in the process of raising a $1.5 million investment to expand and dominate our current markets,” said Ganim, who closed 15% of his company’s pre-Series A round.

Saudi Arabia is her main target due to its high purchasing power, established payment gateways, logistics and supply chains, the Ramallah-based businesswoman said.

One of the reasons is that “PayPal doesn’t work in Palestine. They don’t recognize Palestine as a country. …So how is our company even supposed to set up and operate when the biggest payment gateway don’t actually work? Or allow them to operate in a legitimate way, like every other startup in the world?’ she told Al-Monitor.

“Having a startup is kind of overcoming the bureaucracy of the [Israeli] occupation,” she added. “So we avoid it.”

Its method has proven itself, with Kenz being the only Palestinian company to raise funds from 249 startups in the Middle East and North Africa (MENA) in the first half of 2021, which totaled a record $1 billion, according Wamda.

Ganim said six investors at the event from the United Arab Emirates, Palestine and Saudi Arabia had scheduled meetings with her.

Expansion Seeds

In 2022, startups in the MENA region raised $2.2 billion in the first eight months, a 29% increase from the $1.7 billion recorded in the same period last year, a reported Wamda.

The United Arab Emirates racked up the most funding with $233 million, followed by Saudi Arabia with $103 million and Egypt with $38 million.

As the world becomes increasingly dependent on online payment systems and conducting business in environments such as the Metaverse, palestinian startups find new ways to invest and more.

“The beauty of digital technology, technology-driven companiesit’s that…they don’t see borders,” said Hashim Shawa, president of the Bank of Palestine and co-chair of the ICEP.

“It’s a good time to be a palestinian entrepreneur and a startup. You have all the stars aligned, or the success factors, where the ecosystem is ready and built,” said Shawa, who also said there was a lot of interest in venture capital from the public. of ICEP and indications of regional collaboration during the event, which was organized for the first time in Dubai.

“We have just signed with the [Dubai International Finance Center] a cooperation agreement between the [Bank of Palestine] and our innovation center,” he told Al-Monitor, citing four centers in the West Bank and Gaza.

More than 300 startups have been created in the West Bank and Gaza since 2010 according to ICEPwith much of it only recently and 35% of the ecosystem being developed between 2020 and 2021.

The predominant fields are e-commerce (22.8%), education technology (13.9%), health technology (11.9%) and fintech (10.9%).

Average 19 additional startups were created in the West Bank and Gaza each year from 2009 to 2018, according to a World Bank report.

Talented and highly skilled founders were seen as major assets in the Palestinian ecosystem, while limited management experience and insight were barriers, according to the 2018 report. , foreign investment was seen as the most influential factor for their long-term success.

Conscious investments

“There’s huge profit potential,” said Habib Hazzan, co-founder and managing partner of Ibtikar Fund, which has funded 29 startups.

“There is a lot of talent in Palestine; it’s affordable and very accessible,” said Hazzan, who helped raise $10.5 million in 2016 when the fund was created and $30 million in 2022 pending closing.

He said there are two things that Palestinian startups need to thrive: access to finance and access in general.

“Because you have movement restrictions, sometimes [there are] restrictions imposed on foreign experts coming to Palestine. So we have to make up for that,” he added.

One of the success stories of the Ibtikar Fund is Tawazon, the first Mindfulness and meditation app in Arabic language, which uses cognitive processing therapy to help reduce stress and anxiety. Founded in 2019, it has made a name for itself in the App Store and Google Play, reaching consumers around the world. “Today we have 250,000 Tawazon users; 20,000 of them are active monthly users,” said Suna Zoabi, founder and CEO of the mental health app.

She says Ibtikar is the only fund startups have access to in Palestine, and while that is starting to change, they need direct access to Middle Eastern, European or American funds to really grow.

Zoabi said that in addition to the Ibtikar Fund, she also found a Kuwaiti investor for her pre-Series A fundraising and hoped to find more in the Greater Middle East.

“We are looking for someone who can open doors in the GCC to the specific Saudi market,” she said, adding that events such as ICEP bring her closer to the 70% of her clients who come from countries around the world. Gulf.

Is the banking sector announcing a recovery? – Guardian of Trinidad Mon, 31 Oct 2022 11:03:49 +0000

For our comprehensive research and analysis, please visit

This week on the Exchange, we review the banking sector of the T&T Stock Exchange (TTSE), the largest sector by value or market capitalization, accounting for more than half of the total market value of the TTSE. Despite financial market volatility and heightened global uncertainty, earnings in the banking sector have – overall – largely improved over the course of 2022. The positive earnings momentum in the larger TTSE sector signals t Brighter economic fortunes ahead, or could swirling economic headwinds dampen economic activity in the months ahead? We discuss below.

Rebound in bank profits

The banking sector accounts for approximately 53.5% of the total index value on the TTSE. For the nine-month period of the banks’ respective fiscal year 2022 (9M2022), earnings improved compared to the prior comparable period. Banks’ total earnings per share (EPS) – assuming an investor owns one share of each company/banking group – for 9M2022 was $12.92 compared to $11.49 in 9M2021, which represents a 12.5% ​​year-over-year increase. Although not yet back to 9M2019 ($13.64) levels, banking sector earnings continued to recover from the recent 9M2020 low of $8.77 per share when the COVID-19 pandemic has virtually crippled entire economies.

Declining banking market capitalization

Despite a recovery in profits for each of the bank stocks, four of the five listed banks have recorded lower prices since the start of the year, with shares of NCBFG (down 40.0%) dragging the sector lower. SBTT is the only bank stock with a positive evolution of its price since the beginning of the year (↑13.6%).

Data from the Trinidad and Tobago Stock Exchange (TTSE) showed that the value (market capitalization) of publicly traded bank stocks appreciated 12.0% from $71.5 billion in 2018 to $80.1 billion by the end of 2021. Year-to-date, the sector’s market capitalization has contracted by 14.9% to $68.1 billion.

Better valuation of banking stocks?

The banking sector’s average price-to-earnings (P/E) ratio increased continuously between 9M2018 and 9M2021, from 14.1 times to 21.7 times. The P/E ratio is a simple but effective indicator of how much investors are willing to pay for every dollar of profit generated by a company. Higher P/E multiples suggest stocks are more expensive. High P/E multiples were evident in the 9 months of 2021, with the most expensive bank stocks trading at a P/E of 30.5x and the cheapest at a P/E multiple of 20.1x, with fairly rapid price increases outpacing earnings growth.

Some degree of mean reversion has occurred in 2022, with a combination of stock price correction and improved earnings leading to improved P/E multiples. Banking sector P/E multiples are now fairly comparable to pre-COVID levels, with the sector’s average P/E of 14.5x in 9M2022 compared to the pre-Covid19 level of 14.1x in 9M2018.

The range of P/E multiples between individual stocks has also widened, suggesting that investors may be more discerning in stock picking. For example, in 9M2022, FirstCaribbean International Bank Ltd (FCI) is currently trading at the most relatively attractive P/E ratio (7.5x), compared to Scotiabank T&T Ltd (SBTT) which is trading at the relatively more attractive P/E. the most expensive multiple (20.7x).

In terms of the market/book value (M/B) multiple – the market price per share relative to the book/book value of a company’s net assets per share, the industry average has remained relatively constant around 2.0 times between 9M2018 and 9M2022.

While average M/B ratios showed stability, the range of M/B ratios between individual stocks widened in 9M2022 after narrowing in 9M2020 and 9M2021. The broadening of the range suggests that there may be opportunities for investors to be more selective in choosing individual stocks within the banking sector if they are looking for relative value. For example, at 9M2022, FCI is currently trading at the more attractive M/B ratio (1.0x), compared to SBTT which is trading at the more expensive M/B multiple (3.2x).

Cost management improves

The efficiency ratio is a measure of how well banks manage their expenses in relation to revenue generation (lower ratio = better performance). Most banks were able to improve their efficiency ratios during 9M2022 compared to the previous comparable period. NCBFG improved its efficiency ratio from 77.9% in 9M2021 to 73.1% in 9M2022. FCI lowered its ratio to 67.6% in 9M2022 from 72.1% in 9M2021. Other banks, including RFHL and SBTT, also managed to reduce their efficiency ratios in 9M2022. The FCGFH efficiency ratio increased from 54.8% to 59.0% in 9M2022. This general improvement in efficiency ratios could be an indicator of improved bank profitability in later periods.

Credit quality is recovering

Impairment losses as a percentage of total loans have declined from highs seen in 2020. Heightened uncertainty caused by the COVID-19 pandemic has pushed provisions up to an industry average of 1.7%. Despite mounting inflationary pressures across the region, impairments fell to 0.3% on average over 9M 2022 amid recovering economic activity. Reduced impairments may signal an improvement in the perceived quality of banks’ loan portfolios as the likelihood of delinquency, distress, and/or default decreases.

Considerations for Investors

The banking sector has, thanks to a combination of factors, returned to more attractive territory from an investment point of view. Investors considering banking stocks on the TTSE have a fairly wide menu, ranging from T&T-focused franchises specializing in more traditional banking services such as SBTT, to regionally diversified conglomerates with large banking and insurance operations. (like NCBFG).

For income-oriented investors, stocks such as SBTT and FCI currently offer more attractive dividend yields of 4.1% and 5.4% respectively, while FCI also offers the added benefit of receiving dollar dividends. Americans. Growth-oriented banking investors could look to RFHL and NCBFG, which have made several acquisitions over the past few years. FCGFH might also be on the minds of investors looking for banks with expansionary ambitions, given the Group’s recent (but ultimately unsuccessful) attempt to enter the Guyana market, as well as its relatively recent acquisition of a 19.9% ​​stake in online lender Term Finance. (Holdings) Ltd.

From a macroeconomic perspective, the financial performance of banks in future periods will depend on the health of regional economies and related activity. For now, the impact of inflationary pressures and the rising cost of living on disposable income and demand for credit appears to have been more than offset by the momentum generated by the “post-COVID” economic reopening. While it remains to be seen whether this momentum will continue, recent results suggest that banks (and the underlying economies they serve) appear to be recovering reasonably well from a difficult two-year period.

Waipa’s View: From Direct Investment to Direct Engagement | fDi Intelligence – Your source of information on foreign direct investment Fri, 28 Oct 2022 11:00:00 +0000
  • The world needs better IDEs.
  • This requires a profound transformation of investment promotion agencies (IPAs).
  • FDI has yet to master how to bridge the global divide.

As the Foreign Direct Investment (FDI) industry gathered at WAIPA’s World Investment Conference in September, a clear message resonated: the world needs better FDI, a message that requires significant transformation. investment promotion agencies (IPAs).

Professionals around the world are wondering how to address challenges such as climate change, disruption of value chains or food insecurity. FDI practitioners, policy makers and economic developers have come a long way to improve the lives of millions of people and the many initiatives on green investment, sustainable IPAs or diversity are just some of the tremendous effort by many people. However, the reality of things speaks of an outstanding task. In all geographic areas, homelessness, unemployment or deprived neighborhoods without access to basic services are commonplace. They remind us that FDI has yet to master how to bridge the global divide.

The bottom of the pyramid

The reality is telling: as many as 648 million people lived on less than $2.15 a day in 2019, according to World Bank data. This group is generally referred to as “low [or base] of the pyramid”, commonly referred to as the BOP. It is clear that global aid alone cannot meet the challenge they pose, and that even rapid economic growth often coexists with inequality. Quoting CK Prahalad and his seminal book “Wealth at the Bottom of the Pyramid: Eradicating Poverty Through Profits”, we believe that “typical images of poverty obscure the fact that the very poor represent resilient entrepreneurs and conscious consumers. values. What is needed is a better approach to helping the poor, one that involves partnering with them to innovate and achieve sustainable win-win scenarios where the poor are actively engaged and, at the same time, the businesses that provide them with products and services are profitable.”

What if we could make those words a leitmotif of what a better IDE might look like? What if we were to give a more strategic role to FDI so that it benefits sectors of society that it has not yet reached? For this to happen, there are at least three areas to focus on.

First, consider BOPs as a market. Economists and social entrepreneurs have recognized for years that the poorer sectors of society represent a market with distinct consumption patterns. GE, Unilever and Novartis are among many global companies that have expanded their markets and innovation capabilities by engaging in BOP markets. Additionally, a significantly improved digital and payment infrastructure has made engaging with the BOP more accessible for a wide variety of investors, as proven by many money transfer, payment and microfinance services. mobile phone based.

Retail and food industry investors have also begun to cater to the needs of BOPs. However, this segment presents specific challenges such as high price sensitivity, demand for maximum utility, brand awareness and affordability. As companies adapt to compete in these segments, they often gain a cost advantage and the ability to personalize and attract talent, which directly relates to the bottom line.

Serving BOPs generally forces companies to review and/or adapt their value creation methodologies. Information asymmetry is likely to prevent multinationals offering balance of payments-oriented products and services, or wishing to develop them, from taking full advantage of this opportunity. Why do we expect businesses to find their own way? The foundations are already tracking BOP-specific data that we could use to better understand the “story” of BOP, consumer aspirations, and other key insights. Fostering balance-of-payments-focused private-public collaboration would remove the current barriers that foreign (and often local) companies catering to this market often find.

Second, poverty must be understood as a component of sustainability. According to the International Institute for Sustainable Development (IISD), an international think tank based in Canada: “From an environmental perspective, poverty and unsustainable production and consumption patterns are the main drivers of the environment. At the same time, environmental degradation and climate change can deepen poverty [and vice versa]. Although there is no easy solution, poverty and the environment must be tackled together.

APIs are already working with foreign investors to stimulate green investments. How can we leverage companies that are already committed to carbon neutrality, so that they also integrate the fight against poverty into their work, not only from a CSR point of view, but through the design of their services and the value chains that support them? How can we help investors understand the links between sustainability and poverty, while helping them meet the performance imperatives of their boards? What data do we need to generate to help companies scale up their sustainability efforts to have a broader impact?

Third, it is about intentionally inducing FDI to promote social mobility. Governments – and therefore agencies that use public funds – are expected to play a greater role in poverty reduction and help households cope with a range of inequalities (from access to water to health, life expectancy or income). According to the WEF, Brazil, South Africa, Hungary, China and India are the five countries “that have the most to gain from a better social mobility score”, adding that “an increase in social mobility of 10% would benefit social cohesion and boost global economies by nearly 5% by 2030.” This is in addition to other intangible benefits such as stability and improved opportunities for a more people to reach their potential. Many other countries could also benefit.

Market-driven solutions

The task at hand is to redirect FDI from working with businesses to invest in a certain location, to working with businesses to invest in solving pressing problems through market-driven solutions who develop profitable products and services that provide BOP segments with better alternatives and more options for self-improvement.

This gives the possibility of co-created and innovative approaches that companies could develop internationally in the different markets they serve. Admittedly, many companies might not be interested in this segment. However, ROI is a topic discussed at every board meeting. What if the FDI industry could better articulate the business opportunity when working with BOPs? How could we open new conversations and foster the launch of new products and services that offer an attractive return on investment and at the same time respond to the call for a transformation of the FDI industry?

For this to happen, FDI professionals need to rethink how they market their host economy as an investment destination, the type of incentives it offers and the services it provides. The work ahead is less about shouting about a ranking they’ve topped, and more about helping companies engage with the realities on the ground and co-create solutions that matter. What if potential investors, motivated by new market opportunities with BOPs, based their decisions not only on the ease of doing business, but also on social mobility?

No time to waste

It’s urgent; the World Bank says climate change will push millions of people into poverty by 2030, especially in areas where the world’s poor are already concentrated today. Now is the perfect time for practitioners, policy makers and the business community to rethink how FDI can be structured for much wider impact. Linking FDI to balance-of-payments profit, as many social entrepreneurs and innovative firms have already done, will attract more foreign investors, skills and approaches, including those overlooked by current industry practices.

At a time when the FDI industry needs to reinvent itself, engaging with BOPs offers the FDI sector a pathway to increase its impact. We believe that the best “direct investment” should include “direct engagement” with those who need FDI the most. There is no time to wait for this change. Balance-of-payments initiatives, where the private and public sectors bring their best design resources and services that create a new kind of FDI value, offer a pathway to answer the call for better FDI. The FDI sandbox expansion provides an opportunity to create a powerful legacy that might actually leave no one behind. Who will be the first to enter this exciting new space?

Caroline Arriagada Peters is an international FDI consultant, author and trainer with clients around the world. She is a thought leader who is always looking to push the boundaries of the FDI industry. Twitter: @askcarolina

Deepa Prahalad is a design strategist, author and innovation expert in emerging markets. She works with corporations and startups, mentors leading social entrepreneurs, and sits on several nonprofit boards. Twitter: @deepaprahalad

This article first appeared in the October/November 2022 print edition of fDi Intelligence. See a digital edition of the magazine here.

Ontario Canada raises speculation tax on foreign home buyers to 25% Tue, 25 Oct 2022 22:51:00 +0000

Oct 25 (Reuters) – The Ontario government said on Tuesday it was raising the real estate speculation tax for foreign buyers from 20% to 25% as part of a plan to tackle the housing crisis in Canada’s most populous province.

“For too many Ontarians, including young people, newcomers and seniors, finding the right housing is still too difficult,” provincial Housing Minister Steve Clark said in a statement.

Ontario, home to Canada’s financial capital, Toronto, is expected to have more new households than new homes by 2030, according to Canada’s national housing agency.

The 25% tax rate would apply across the province and is intended to discourage foreign speculation in Ontario’s real estate market, the provincial government said in the release.

The government’s housing plan also includes proposals to freeze, reduce or waive fees associated with building new homes as well as allocations for up to three residential units to be built on certain land zoned for single-family homes.

House prices jumped more than 50% during the COVID-19 pandemic, driven by low interest rates, a desire for more space and speculative activity.

Although home prices are easing after steep interest rate hikes by the Bank of Canada, higher qualifying rates are still keeping some potential buyers out of the market.

To curb speculation, the federal government also implemented a temporary ban on foreign buyers starting in January.

Reporting by Ismail Shakil in Ottawa; Editing by Josie Kao

Our standards: The Thomson Reuters Trust Principles.

Bitcoin Group: Bitcoin Group Evaluates Offer From 268-Year-Old German Bank Fri, 21 Oct 2022 18:57:00 +0000 Bitcoin Group SE is considering an offer for Bankhaus von der Heydt, the 268-year-old German bank that has stumbled with its own moves in cryptocurrencies and digital assets, people familiar with the matter have said.

Founded in 1754, Munich-based Bankhaus von der Heydt spoke to potential buyers after a failed deal to sell on crypto derivatives exchange BitMEX, the people said. A sale could value the bank at around ₹20 million ($19.6 million), the people said, asking not to be identified discussing confidential information.

Bitcoin Group is a Germany-based crypto and blockchain investor that owns futurum bank AG, a trading platform for digital currencies.

Deliberations are ongoing and there is no certainty that they will result in a sale, people say. A spokeswoman for Bankhaus von der Heydt declined to comment, while a representative for Bitcoin Group had no immediate comment.

Bankhaus von der Heydt has become one of the first lenders in Germany to offer digital asset trading and custody services, betting the demand for cryptocurrencies would help it reverse years of losses. But the costs of developing the technology pushed the bank further into the red.

Owner Dietrich von Boetticher is reluctant to continue injecting capital and without a new source of cash the bank could be forced to close, people say.

Bitcoin Persists Below $20,000 For Longest Period Since Late 2020

Bitcoin has spent more than two weeks trading below a key $20,000 threshold for the first time since breaking that level in late 2020, indicating a lack of optimism among traders as volatility the hallmark of the asset class dissipates in the face of rising interest rates. The largest cryptocurrency by market value edged lower for a fourth trading session, falling less than 1% to $18,969 as of 9:33 a.m. New York.