Banks heading for profit decline in 2013; Stock market continues strong performance

A long, debilitating battle over the position of its chairman has led to much soul-searching and investigation at Ecobank, one of Africa’s leading banks. But the direction of the business is the most pressing issue for its bullish chief executive, Thierry Tanoh.

As international sanctions on the country are loosened after the ground-breaking, albeit tentative, nuclear deal, Iran’s influence in the region will undergo dramatic changes, argues Emad Mostaque, of Noah Capital Markets.

In an interview with Euromoney, Mike Brown, CEO of Johannesburg-based Nedbank, clarifies ownership and business intentions with Togo’s pan-African lender ETI – the two having operated a client-sharing service since 2008 – which has been subject of takeover rumours for years.

Bank analysts and equity investors give their opinions on which companies they think are the best by the individual company sectors.

Euromoney’s annual survey invites investors to rate the quality of bank research on Middle Eastern equity and debt bearing in mind overall performance and accuracy.

Euromoney’s annual Middle East survey was conducted between 2nd May and 21st June.

With resurging local interest and new catalysts for foreign investment, prospects are finally looking up for Gulf stock exchanges. Challenges remain, but new companies are already beginning to explore listings.

Euromoney’s annual Middle East survey was conducted between 2nd May and 21st June.

Emerging market lender's regional CEO targets Nigeria, Angola; Sets hopes on electronic channels

Follows ratings upgrades; Net profits up 12% to KD14.3mln

In January 2013, at the World Economic Forum annual meeting in Davos, Rwanda’s president, Paul Kagame, proudly announced the launch of the East African Commodity Exchange (EAX) in Kigali.

Rwanda’s ranking has improved significantly between March and September 2013 in Euromoney’s Country Risk Survey, with the country climbing six places to reach 124th in the global table. Although still included in ECR Tier 5 – meaning investors should consider the country a high-risk investment destination – Rwanda’s scores in the survey categories for Monetary Policy/Currency Stability and Access to Capital Markets have both risen in the last six months, suggesting that economists believe the country is becoming more attractive to investors while enjoying greater macroeconomic stability than in previous years. Both scores appear to have been influenced by the successful launch of the country’s debut Eurobond in April.

Kenya has waited nearly seven years to get its debut Eurobond issue off the ground, so why not wait a few more weeks?

Many Rwandans questioned the need for the country’s inaugural Eurobond. Initial plans were derailed by the UN. But its successful performance has encouraged policymakers to deepen the country’s capital markets and create a unique business platform.

Rwanda is landlocked. And although the land is fertile, the country has little to offer on the oil and gas front, setting it sharply against the usual commodity story that characterizes many other countries in Africa.

Refutes return to bubble-era practices; Repays Tamweel liabilities

Led by its confident and energetic chief executive, Ismail Douiri, Moroccan bank Attijariwafa is building a big franchise in sub-Saharan Africa as well as consolidating its ties with expatriate Moroccans in Europe.

Qatar remains the safest MENA country while the region’s average risk score in Euromoney’s Country Risk Survey slips again during the third quarter, as economists downgrade their views on most countries polled.

Although Kenya missed out on low nominal yields for emerging market issuance before the May to August rout, the country will not pay through the nose for credit-specific risk, despite the recent terrorist atrocities at Westgate Mall, its twin deficits and large size of the deal at $1.5 billion to $2 billion, say analysts. However, the country faces an uphill battle to issue before the Christmas holidays.

The sovereign’s declining score trend partially reversed at the end of the third quarter of 2013, but the country remains one of the riskiest in the MENA region, both in terms of its political and economic rating.

Bank grows trade finance volumes; Expansion continues in emerging markets

State Islamizes banking sector; Potential impact on global sukuk market

State approves $525 million capital raise; Move to longer-term, majority stakes

Figures from the IMF show that global reserve managers cut back their holdings of emerging market (EM) currencies aggressively in the second quarter.

Trade finance is renowned for its quaint reliance on paper documentation and relative lack of technological sophistication, but despite the pressure on IT budgets, the business is modernizing, albeit slowly.

Unilever this week became the latest company to attribute slowing sales growth to turmoil in emerging market (EM) currencies.