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 ADX fell 0.1% yesterday on turnover of AED 934.2 mn. The index is down 3.7% YTD.

In the green: Gulf Cement Co. (+7.9%), Phoenix Group (+3.9%) and National Bank of Umm Al Qaiwain (+2.6%).

In the red: Ooredoo (-7.5%), Response Plus Holding (-6.6%) and Burjeel Holdings (-4.7%).

Over on the DFM, the index closed up 0.1% on turnover of AED 324.1 mn. Meanwhile Nasdaq Dubai fell 0.2%.

CORPORATE ACTIONS-

Agthia’s board has proposed a dividend payout comprising AED 81.1 mn in cash dividends and AED 39.6 mn in stock dividends, totaling AED 120.7 mn, for 2023, according to an ADX disclosure (pdf). The company will make the final decision in its upcoming general assembly meeting on 23 April.

Fujairah Building Industries has proposed a dividend payout of AED 40.8 mn for 2023, an ADX disclosure (pdf) reads.

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