“Bank of Cairo” intends to list its shares on the Egyptian Stock Exchange

Major US banks are entering the season of announcing third-quarter results amid a new test of the earnings momentum that supported their performance in the first half of the year, with bond yields rising and inflationary pressures rising, at a time when markets are awaiting indications of the impact of financing costs on lending, consumer spending and deal activity.

JP Morgan Chase, Goldman Sachs, and Citigroup will begin announcing their results (Tuesday), and Bank of America and Morgan Stanley will announce their results (Wednesday).

These results are important beyond the performance of the banks themselves, as they provide indicators of the conditions of consumers and companies, trends in capital markets, and the ability of the US economy to continue growth in light of rising borrowing costs.

After strong results in the first half, analysts expect bank profits to decline compared to the second quarter, with some exceptional revenues from trading, deal-making and financing receding. However, expectations still indicate annual profit growth for most major banks, according to estimates reported by media reports.

Bond yields put pressure on bank stocks

US bank stocks have declined in recent weeks as Treasury bond yields have risen, a reflection of investors' concern about financing costs remaining at high levels and their impact on stock valuations and market activity.

The five largest American banks lost about $270 billion in market value, compared to the peaks their shares recorded during the summer, until Friday’s close, according to a Yahoo Finance report. The index of banks included in the Standard & Poor's 500 index also fell by about 7.5 percent during the previous month, according to Reuters.

The sector faces a complex equation; High interest rates may support returns on new loans, but it also raises the cost of deposits and financing from wholesale markets, puts pressure on the value of some investment portfolios, and makes financing acquisitions and mergers more expensive.

Attention is turning to the comments of executive departments regarding lending margins and the cost of deposits, especially with the intensification of competition between American banks to attract customer funds. Brendan Coughlin, Chairman of Citizens Financial Group, said that growing loans has become easier than attracting deposits, which increases pressure on the cost of financing.

Inflation puts the interest rate path under the microscope

The importance of the results week is not limited to the performance of banks, as markets are also awaiting data on consumer and producer prices and retail sales, searching for new signals about the path of inflation and spending in the United States.

The September consumer price report, due Wednesday, is expected to show a year-over-year rise in prices, with oil prices returning to above $100 a barrel and fuel costs continuing to rise. Increased energy prices add pressure on household budgets and corporate costs, and may complicate efforts to contain inflation.

The Federal Reserve raised the key interest rate last month for the first time since 2023, in an attempt to contain price pressures. Inflation and retail sales data will help determine whether markets will reprice their expectations for upcoming decisions, including the central bank meeting on October 27-28.

The yield on ten-year US Treasury bonds exceeded 5 percent, recording historically high levels in the recent period. Higher yields increase the attractiveness of bonds compared to stocks, and also raise the discount rate used in valuing assets, which may limit the ability of stocks to continue rising.

Transaction activity and artificial intelligence

While trading revenues may decline from the strong levels recorded during the first half, financing investment in artificial intelligence remains a promising area for banks, through loans, issuances of shares and bonds, and advisory services related to mergers and acquisitions.

But rising financing costs are beginning to pose challenges for some companies seeking to enter public markets. Companies have postponed plans for an initial offering, while Firmware Grid, which is backed by Nvidia, abandoned its listing plans this week after investors expressed reservations about the proposed valuation.

These developments indicate that strong demand for AI infrastructure financing does not mean that deals will continue at the same pace, especially if bond yields continue to rise or companies become more conservative in their valuations.

Thus, bank results and inflation data during the week will present a coherent picture of three main factors moving US markets: the ability of the banking sector to protect its profit margins, the extent of consumers’ resilience to rising prices, and whether borrowing costs will begin to slow corporate and market activity.

The Advanced Petrochemical Company recorded a net loss of 65 million riyals ($17.3 million) during the first 9 months of 2026, compared to net profits of 225 million riyals ($60 million) in the same period of the previous year.

In a statement published on Tadawul, the company attributed its shift to loss to the increase in the purchase prices of propane and propylene by 8 and 6 percent, respectively, in addition to recording depreciation expenses, fixed costs, and financing expenses associated with the “Advanced Polyolefins Company for Industry,” after the start of its commercial operations in the third quarter of 2025, while no similar burdens were recorded during the first half of that year. The loss came despite a 24 percent increase in net revenues, according to the statement.

In terms of stock performance, the company's shares declined by 1.34 percent to reach 21.31 riyals following the announcement of the financial results.

The company's net revenues increased by 23.6 percent during the first nine months, according to the official ratio, to 2.8 billion riyals ($746.7 million), compared to about 2.3 billion riyals ($613.3 million) in the same period of the previous year. The company attributed the increase to an increase in sales quantities by 11 percent. As a result of the operation of the two polypropylene production lines of the “Advanced Polyolefins Industrial Company” during the second half of 2025, in addition to an increase in net sales prices by 11 percent, despite the lack of production during the second quarter of 2026 due to the decrease in propane supplies in light of the geopolitical turmoil witnessed in the region.

On a quarterly basis, the company’s net profits declined to 4 million riyals ($1.1 million) in the third quarter of 2026, compared to profits amounting to 72 million riyals ($19.2 million) in the same quarter of the previous year, a decrease of 94.4 percent. The company attributed the decline to a decrease in net revenues by 4 percent, an increase in propane prices by 8 percent, in addition to recording depreciation expenses, fixed costs, and financing expenses for three months during the current quarter, compared to two and a half months in the same quarter of the previous year.

Third-quarter revenues decreased by 4.3 percent to 974 million riyals ($259.7 million), compared to about one billion riyals ($266.7 million) in the same period of the previous year. The company attributed the decline to a decrease in sales quantities by 20 percent as a result of logistical challenges related to geopolitical conditions, despite an increase in production quantities by 12 percent and average net selling prices by 20 percent.

The company explained that the estimated financial results for the period ending on September 30, 2026 were prepared by its management, and were not subject to audit or review by the external auditor.

Today (Sunday), a South Korean container ship completed the first round-trip commercial voyage between South Korea and Europe across the North Pole, away from the Suez Canal, at a time when the authorities are betting that this route will contribute to transforming the port of Busan into a global maritime center.

The Pan Star Acro ship docked in the port of Busan, southeast of the country, 50 days after it sailed on August 22. Authorities say the Arctic route could reduce the duration of regular flights by about a third.

South Korean President Lee Jae-myung has made trans-Arctic shipping services a priority, and officials hope to launch regular flights via this route by 2030.

But the project could raise tensions with Western allies who seek to keep Russia isolated over its war in Ukraine.

The route runs along Russia's Arctic coast, and Seoul has consulted with Moscow about the voyage, including whether the ship will need help with any potential problems, such as getting stuck in ice.

During the outward journey, the ship crossed Arctic waters and arrived at its first European port in Felixstowe, Britain, before stopping in Rotterdam and Gdansk and returning to South Korea via the same route.

The Arctic route is considered shorter in the period of time that ships need to pass through the Suez Canal, but the Arctic route is fraught with risks and has specific seasonal times, while the Suez Canal through the Red Sea is an open route throughout the year, in addition to the safety rate of this route.

The test flight highlighted the challenges that remain. Before sailing, Pan Star said, according to Reuters, that it was seeking to transport the equivalent of about 1,300 twenty-foot equivalent containers, but the ship left with only 737 containers on board, in addition to empty containers.

Experts in the shipping sector said that the feasibility of this route will depend on the regularity of flight schedules, the costs of reducing speed to avoid ice, special insurance premiums, and additional fuel consumption.