TOP NEWS IN EUROPEAN FINANCIALS
* Barclays PLC is putting on hold its planned £1 billion share buyback, which was set to begin to the second quarter, amid discussions with the U.S. Securities and Exchange Commission over the potential restatement of its 2021 financial statements in relation to its overissuance of U.S. securities. The British bank said it intends to launch the repurchase program "as soon as practicable" following the resolution of the matter with the SEC.
* Barclays' first-quarter attributable profit fell 18% year over year to £1.40 billion from £1.70 billion as it booked £4.11 billion of total operating expenses, up from the year-ago £3.58 billion, due to litigation and conduct charges of £523 million, which included £320 million in provisions relating to its U.S. trading error. The lender now expects total operating expenses of roughly £15.0 billion for 2022, given the litigation and conduct charges booked in the quarter and current expectations for inflation and performance costs.
* Standard Chartered PLC's first-quarter statutory net profit grew 7% year over year to $1.18 billion from $1.10 billion, bolstered by a 9% increase in operating income to $4.29 billion. The U.K.-based, Asia-focused banking group booked a $197 million credit impairment charge in the quarter, widening from the year-ago $17 million, as it booked a $160 million charge relating to China commercial real estate exposures. StanChart said it forecasts income growth for the full year to slightly exceed the previously guided 5% to 7% range, backed by strong expectations of rising interest rates despite a less predictable economic recovery outlook.
➤ Credit Suisse faces limited cost flexibility after legal woes drive Q1 loss
"There is, whether we like it or not, a significant degree of short-term inflexibility in the cost base for 2022," outgoing CFO David Mathers said after Credit Suisse booked its second straight quarterly loss.
➤ Lloyds keeps wary eye on inflationary pressures as Q1 results beat expectations
The U.K. bank said its customers have cancelled around 1.2 million subscription payments for discretionary items such as streaming services and gym memberships since the summer of 2021.
➤ Deutsche Bank sticks to 2022 cost guidance amid pay hikes
Germany's largest bank still has a chance to reach its key cost reduction goal this year despite boosting pay to retain talent, CFO James von Moltke said.
READ MORE about the market reaction and industry impact of the evolving situation in Russia and Ukraine in our new Issue in Focus.
BANKING
* DNB Bank ASA recorded a group profit attributable to shareholders of 7.30 billion Norwegian kroner, up from 5.67 billion kroner a year earlier. Its common equity Tier 1 capital ratio declined to 18.1% at the end of March from 19.2% a year earlier, mainly due to the acquisition of local peer Sbanken ASA, which has been fully consolidated into the DNB group at the end of the quarter. DNB said it has "very limited" exposure to Russia and Ukraine.
* Nordea Bank Abp posted a net profit attributable to shareholders of €244 million in the first quarter, a sharp fall from €762 million a year before. The Finland-based group has initiated the final steps to liquidate its subsidiaries in Russia and its asset management business also decided to exit all fund investments linked to Russia, CEO Frank Vang-Jensen said. During the quarter, Nordea said it assessed the recoverability of its "very low" direct exposure to Russia and made provisions of €76 million.
* Sweden-based Swedbank AB (publ)'s first-quarter profit attributable to shareholders declined 5% to 4.62 billion kronor from 4.84 billion kronor in the linked quarter, mainly due to lower income, the introduction of the bank tax and higher credit impairments. The bank said it has "low exposure" to Russia, Belarus and Ukraine, as Sweden has limited trade with those three countries.
* Over in Spain, Banco de Sabadell SA's first-quarter group attributable net profit nearly tripled on a yearly basis to €213 million from €73 million on the back of improved core revenue, cost savings and fewer provisions booked. Excluding British unit TSB Banking Group PLC, Sabadell's attributable net profit was €194 million.
* Crédit Agricole SA agreed to sell its 78.7% stake in Moroccan unit Crédit du Maroc SA to Holmarcom Group, with the deal to be carried out in two stages. The French bank expects the transaction to have a positive impact of about 10 basis points on its CET1 ratio.
* Akbank TAS reported a net income of 8.05 billion Turkish lira in the first quarter, a nearly fourfold increase from 2.03 billion lira a year ago.
* After a jump in profits at the start of the year, Austrian bank Bawag Group AG is planning a share buyback worth €425 million, Börsen-Zeitung wrote.
* Hungary-based OTP Bank Nyrt. faced pressure from authorities in Ukraine, where it has a subsidiary, to sell or shut down its operations in Russia, Reuters reported, citing OTP Bank CEO Sandor Csanyi's interview with local broadcaster Inforadio. OTP Bank earlier said it has been winding down corporate lending in Russia and was considering a potential withdrawal from the country.
FINANCIAL SERVICES
* Starling Bank Ltd. raised £130.5 million from investors in its latest funding round, bringing the U.K.-based digital bank's valuation to more than £2.5 billion, The Times reported. The bank, which was valued at more than £1.1 billion after a previous funding round, said it is considering several potential M&A targets in a bid to expand through acquisitions.
* Belgium-based Euroclear SA/NV delayed until the second half its formal decision on the dividend payment of €88.5 per share as announced in its full-year 2021 results, in light of international sanctions against Russia, which resulted to increased cash held on the securities settlement house's balance sheet. Euroclear said the sanctions are not expected to affect its financial performance but it is working on the mitigation of "potential regulatory capital requirements" related to the swelling balance sheet.
POLICY AND REGULATION
* The Russian central bank said it limited the opportunities for the accelerated sale of foreign depositary receipts issued by Russia-registered companies and converted into Russian shares, setting a limit on the sale of such shares at 0.2% of the converted amount. This follows the recent signing of a bill obliging Russian companies to delist their depositary receipts from foreign stock exchanges and convert them into local securities.
Deza Mones, Daniel Stephens, Meike Wijers, Gerard O'Dwyer, Beata Fojcik, Heather O'Brian, Brian McCulloch, Praxilla Trabattoni and Mariana Aldano contributed to this report.
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