Weekly News Roundup 13-17/05/24

Explore the latest Finance happenings this week via our concise and easy-to-read Weekly News Round-up.

It is designed to be your most organised way to stay up-to-date on the major industry stories every week. We cram one week’s worth of news into a 5-minute read. You’re welcome!

Saudi Awwal Bank Opens New Integrated Branch in SAB Tower

Saudi Awwal Bank (SAB) has unveiled a new integrated branch within the SAB Tower, marking a significant step in enhancing customer experience and service excellence. The inauguration, attended by Chairperson Lubna Olayan and other key executives, highlights SAB's dedication to retail, SME, and investment banking sectors. This launch aligns with SAB's vision of becoming a preferred choice for innovative financial solutions while fostering strong customer relationships. Additionally, the SAB Tower headquarters has achieved SmartScore Platinum and LEED Gold certifications, highlighting the bank's commitment to sustainability and advanced banking infrastructure.

Alibaba Sees Decline in Stock Value

Alibaba Group Holding Limited experienced a decline in its stock value following the release of its fiscal fourth quarter of 2023 results. Despite reporting a 7% year-on-year revenue growth to $30.73 billion, surpassing the analyst estimate of $30.40 billion, the adjusted earnings per ADS fell short at $1.40 against the expected $1.41. Net income dropped by 86% to $453 million due to net losses from investments in publicly traded companies. Adjusted net income also decreased by 11% to $3.38 billion. While some segments like Alibaba International Digital Commerce and Cainiao Smart Logistics showed significant growth, the overall financial performance raised concerns, leading to a nearly 5% drop in Alibaba's stock price to $80.40 in premarket trading.

JPMorgan, Wells Fargo Launch First Bitcoin Investment

J.P. Morgan and Wells Fargo have announced their investment in Spot Bitcoin Exchange Traded Funds (ETFs). This move comes as Bitcoin's price dips to approximately $60,000. Both banks disclosed their investments in recent SEC filings, marking a departure from their previous cautious stance on cryptocurrencies. Wells Fargo reported converting its 2,245 shares of Grayscale Bitcoin Trust into an ETF and holding additional shares in the ProShares Bitcoin Strategy ETF. JPMorgan detailed its purchase of around $760,000 worth of shares in various Bitcoin trusts and ETFs, including those by BlackRock, Fidelity, and others.?

Credit Agricole CEO Advocates for Consolidation in Europe’s Finance Sector

Jér?me Grivet, deputy CEO of Groupe Crédit Agricole SA, highlighted the benefits of consolidation in Europe’s finance sector, particularly for corporate and investment banks. Grivet noted that, while larger and more powerful banks are crucial for these sectors, the absence of a unified retail banking market in Europe makes consolidation less relevant for retail banks. His comments come after French President Emmanuel Macron expressed openness to major French banks being acquired by EU rivals to foster financial integration. Grivet emphasised that European regulation has focused more on the robustness of lenders than on their competitiveness.

SCB Records Higher Net Profits

Suez Canal Bank (SCB) has announced a significant increase in net profits, reaching EGP 611 million in March 2024, marking a 144% rise from EGP 251 million in March 2023. CEO Akef El Maghraby attributes this surge to a 54% increase in net income, which rose to EGP 1.091 billion. The bank's financial position improved by 32%, reaching EGP 136 billion, driven by a 27% increase in customer deposits and an 18% rise in the net loan portfolio. El Maghraby highlighted a 24% growth in corporate loans and a 10% increase in retail banking, emphasising diversified investments in key sectors to expand SCB's clientele and mitigate risks.

Meta Ups Efforts to Recruit AI Talents

Meta is ramping up its recruitment of AI talent in 2024, with CEO Mark Zuckerberg actively reaching out to potential candidates, particularly from Google Deepmind and the finance sector. Onur Guzey, formerly head of machine learning engineering at JPMorgan, has joined Meta’s London office as an AI engineering manager for the core ads team. Guzey's fintech experience includes pivotal roles at OakNorth Bank and JPMorgan. Additionally, Xiang Li, a former staff engineer at Coinbase with a background at Microsoft and Google, joined Meta's ads team in March, showcasing Meta's strategic hires to bolster its AI capabilities.

BBVA Launches Hostile Takeover Bid for Sabadell in $13.1bn Move

BBVA has surprised the financial market with a $13.1 billion hostile takeover bid for Banco Sabadell , aiming to create a global banking powerhouse with over 100 million customers and assets exceeding 1 trillion euros. Despite opposition from the Spanish government and recent rejection from Sabadell’s board, BBVA remains confident in the bid’s potential benefits and its ability to secure shareholder approval by mid-2025.