20 Dec, 2021
Cybercrime stokes costs for small lenders; Asian banks' bond issuances stay low
Note
Sector Spotlight: Global Financials is a weekly summary of exclusive banking, financial services and insurance industry news and analysis from S&P Global Market Intelligence.
US and Canada
* Cybercrime stokes costs for small lenders wrestling with online banking boom
There were more than 21,000 cyberattacks against financial institutions in the first 10 months, surging from more than 20,000 in all of 2020 and about 14,000 in 2019.
* Bottom may be in view as loan-to-deposit ratio hits new low
The industrywide loan-to-deposit ratio for U.S. banks fell again in the third quarter, but a pickup in lending helped keep the slide in check.
* Banks book fees as PPP loan forgiveness accelerates in Q3
JPMorgan Chase & Co. remained the largest lender after it shed 40.9% of outstanding Paycheck Protection Program loans quarter over quarter, according to an analysis by S&P Global Market Intelligence.
* FDIC board standoff raises new questions about getting bank deals done
A disagreement between Republican and Democratic members of the Federal Deposit Insurance Corp. has bank executives feeling anxious about the future of M&A.
Europe, Middle East and Africa
* Spain's BBVA increasingly reliant on Turkey, Mexico, other emerging markets
The group's assets in Mexico represented 17.1% of total assets as of end-September, up from 14.7% at the end of 2020, while those in Turkey rose to 9.2% from 8.0%, S&P Global Market Intelligence data showed.
* BPER-Carige deal would create Italy's 4th-largest bank by assets
The transaction would increase BPER's customer base by 20% and build on its acquisition of more than 500 Unione di Banche Italiane branches in 2020.
* EU's next temporary regime for UK clearing houses must be longer, experts say
Clearing market participants fear a return to the cliff-edge scenarios of the past two years if the European Union's next grant of temporary equivalence is too short.
Asia-Pacific
* Asian banks' November debt issuances stay tepid; rebound likely in 2022
Chinese, Australian and Indian banks are likely to lead a modest rebound of bond supply among Asia-Pacific lenders in 2022 after subdued activity in November.
* Digital bank WeLab seeks further Southeast Asia expansion after Indonesia deal
Hong Kong-headquartered WeLab Holdings Ltd. plans to further expand into Southeast Asian markets with large, tech-savvy populations as it seeks to become a pan-Asia digital bank following its proposed acquisition of PT Bank Jasa Jakarta in Indonesia.
* Credit losses, margins may slow Asia-Pacific banks' post-pandemic recovery – S&P
Many banking systems in the Asia-Pacific region will likely make a slow return to pre-pandemic levels of asset quality and profitability amid high credit losses and tight interest margins in 2022, according to S&P Global Ratings.
Global Insurance
* Chubb moves to put Boy Scouts claims in rearview with $800M settlement
The agreement Chubb reached with the Boy Scouts of America over childhood sexual abuse claims also broadly releases the insurer from any other claims related to the youth organization, something analysts largely view as a positive.
* Distressed La. property insurer's exposure concentrated around New Orleans
Americas Insurance Co., a financially distressed homeowners insurance company, has at least $3.52 billion in total coverage in Louisiana, according to a review of rate filings submitted to regulators.
* Losses from tornado outbreak in central US may hit historic levels
Total economic losses from the storms could reach $18 billion, AccuWeather CEO Joel Myers estimated, which would make this the costliest tornado outbreak in U.S. history.