WASHINGTON: US payments processor PayPal Holdings Inc. said on Friday it was leaving Libra Association, the entity managing the Facebook-led effort to build global digital currency Libra, making it the first member to exit the group.
PayPal said it would forgo any further participation in the group and would instead focus on its own core businesses.
“We remain supportive of Libra’s aspirations and look forward to continued dialogue on ways to work together in the future,” PayPal said in a statement.
In response, Geneva-based Libra Association said it was aware of the challenges lying ahead in its attempts to “reconfigure” the financial system.
“The type of change that will reconfigure the financial system to be tilted toward people, not the institutions serving them, will be hard. Commitment to that mission is more important to us than anything else. We’re better off knowing about this lack of commitment now, rather than later,” Libra Association said in a statement. Facebook Inc. declined to comment.
Facebook announced plans to launch the digital currency in June 2020 in partnership with other members of Libra Association but the project quickly ran into trouble with skeptical regulators around the world.
Reuters reported last week that Facebook could push back the launch of Libra to tackle regulatory concerns.
Visa and Mastercard Inc. are also reconsidering their involvement in Libra as they do not want to attract regulatory scrutiny, the Wall Street Journal reported earlier this month.
France and Germany last month pledged to block Libra from operating in Europe and backed the development of a public cryptocurrency instead.
With the exit of PayPal, Libra Association now has 28 members, including Uber Technologies Inc, Lyft Inc. and Spotify Technologies.
“We look forward to the first Libra Council meeting in 10 days and will be sharing updates following that, including details of the 1,500 entities that have indicated enthusiastic interest to participate,” Libra Association said in a tweet.
PayPal becomes first member to exit Facebook’s Libra Association
PayPal becomes first member to exit Facebook’s Libra Association
- PayPal said it would forgo any further participation in the group and would instead focus on its own core businesses
- Facebook announced plans to launch the digital currency in June 2020
Saudi banks post 2.5% loan growth in Q3 as corporate credit leads: Alvarez & Marsal
RIYADH: Saudi Arabia’s 10 largest listed banks recorded a 2.5 percent increase in net loans and advances in the third quarter from the previous three months, underscoring sustained lending momentum in the Kingdom, a new analysis showed.
The growth was driven by corporate lending, which rose 3 percent during the period and accounted for roughly 59 percent of total loans, according to Alvarez & Marsal’s latest KSA Banking Pulse report.
This steady lending momentum aligns with the wider trend observed in the Gulf Cooperation Council region, where corporate lending continues to gain traction as economies diversify away from hydrocarbons.
In November, S&P Global Ratings said banks across the GCC are expected to maintain stable credit fundamentals in 2026, even as the region faces potential geopolitical and economic shocks.
The rating agency added that the sector’s outlook is supported by broadly steady profitability, solid capitalization, and resilient asset quality.
Commenting on the findings, Sam Gidoomal, managing director and head of Middle East Financial Services at Alvarez & Marsal, said: “Saudi banks continued to demonstrate operational resilience during the third quarter of 2025, supported by stable lending activity, disciplined cost management, and improving asset quality.”
Retail lending in the Kingdom increased by 1.7 percent quarter on quarter during the period, according to the report.
Deposit growth moderated to 2.2 percent, down from 2.7 percent in the second quarter.
“The deceleration in deposits was largely attributable to SNB, which recorded a 2.9 percent quarter on quarter decline, driven by a sharp 7.9 percent quarter on quarter contraction in time deposits,” the report stated.
Government-related entity deposits saw a marginal decline in the third quarter, with their share falling to 31.2 percent of total deposits.
Operating income among Saudi banks increased by 1.8 percent in the third quarter, moderating slightly from the 2 percent rise recorded over the previous three months.
Net interest income was broadly flat, edging up 0.1 percent quarter on quarter, while fee and commission income rose 3.8 percent during the same period.
Aggregate net income increased by 2.8 percent in the third quarter, compared with 3.4 percent growth in the previous three months.
“Despite margin compression, the sector’s strong capital position and consistent efficiency gains position banks well as they prepare for an evolving interest-rate environment in 2026,” added Gidoomal.
Net interest margins contracted by 7 basis points to 2.73 percent, reflecting continued pressure from rising funding costs, the report said.
Banks also demonstrated stronger cost discipline, with operating expenses declining 0.9 percent quarter on quarter, marking a third consecutive improvement in efficiency. The aggregate cost-to-income ratio fell 80 basis points to 28.7 percent in the third quarter.
Return on equity edged higher by 6 basis points to 15.5 percent, while return on assets remained steady at 2.1 percent, underscoring sustained sector resilience.
Asset quality strengthened further, with the non-performing loan ratio declining to 0.94 percent and the coverage ratio rising to 158.1 percent.
“Saudi banks are maintaining solid financial foundations despite periods of global market volatility,” said Quentin Mulet-Marquis, managing director, Financial Services at Alvarez & Marsal.
He added: “Strong earnings, low NPL rates, and comfortable capital buffers underpin investor confidence, while healthy valuation multiples and competitive dynamics continue to support growing appetite for mergers and acquisitions activity in the sector.”
The Saudi banks analyzed in the Alvarez & Marsal report are Saudi National Bank, Al Rajhi Bank, and Riyad Bank, as well as Saudi British Bank, and Banque Saudi Fransi.
Other banks covered include Arab National Bank, Alinma Bank, and Bank Albilad, alongside Saudi Investment Bank, and Bank Aljazira.
Earlier in December, a separate report by S&P Global said Saudi Arabia’s private credit market is set to expand rapidly as the Kingdom seeks to bridge funding gaps linked to its Vision 2030 transformation agenda.
The report noted that the Kingdom’s public and private sector debt — including bank lending, bond and sukuk issuance, and private capital financing — grew at a compound annual rate of 12 percent between 2021 and 2024.
