UBS chief slams European banking regs: Swiss banking giant UBS CEO Sergio Ermotti criticized European regulators for intentionally hindering European banks and allowing US rivals to get ahead in a podcast interview with Nicolai Tangen, CEO of Norwegian sovereign wealth fund Norges Bank Investment Management.

“Europe did everything they could have done to not allow banks to be bigger or successful” following the financial crisis, said Ermotti, who is overseeing the UBS takeover of embattled Swiss rival Credit Suisse. “There’s a political desire to not allow banks to become too big” in Europe, Ermotti added. By contrast, US policymakers wanted banks "to be the leading force going forward in the financial services industry, so they allowed them to grow," he argued.

A fragmented regulatory environment is a prime culprit: The absence of capital market and banking unions “has prevented the creation of strong and alternative players," Ermotti said.

As is the “parochial” mindset of European policymakers: "There is … still a lot of parochial thinking in Europe about big banks," he said. "Each wants to have their own national champions, forgetting that winning the national championships doesn't take you very far [globally]."

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THE CLOSING BELL-

The TASI rose 0.7% yesterday on turnover of SAR 9.2 bn. The index is up 5% YTD.

In the green: Wataniya (+10%), SGS (+10%) and Al Rajhi Takaful (+10%).

In the red: Sasco (-5.7%), SSP (-5.5%) and Al Arabia (-5%).

CORPORATE ACTIONS-

#1- Al Jouf Agricultural Development’s board of directors has approved a dividend payout of SAR 15 mn at SAR 0.5 a share for 2H 2023, it said in a filing to Tadawul. The distribution will be made within 15 working days from the due date of Monday, 15 April.

#2- Almarai fully redeemed its Tadawul-listed RegS USD 500 mn sukuk (Series I) on Tuesday, according to a disclosure to Tadawul.

#3- Nomu-listed Saudi AZM’s board of directors recommended buying back 1 mn shares for the company’s ESOP programs, it said in disclosure to Tadawul. The buybacks would be funded by the company’s own resources.

#4- Aldrees Petroleum is set to hike its capital via a SAR 250 mn bonus share issuance to SAR 1 bn, after receiving regulatory approval from the Capital Market Authority, according to a statement.

#5- Bank Albilad is set to hike its capital to SAR 12.5 bn by issuing bonus shares worth SAR 2.5 bn, after receiving regulatory approval from the Capital Market Authority, according to a statement.

#6- Quencia Capital is now licensed to manage securities investments after receiving a license from the Capital Market Authority, according to a statement.

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