TOP NEWS IN EUROPEAN FINANCIALS
* Credit Suisse Group AG is headed for a first-quarter loss as it sets aside more money for legal issues and anticipates losses due to the Russia-Ukraine war. The Zurich-based bank said it will book an additional CHF600 million in litigation provisions, increasing the total amount it set aside for legal matters for the quarter to about CHF700 million. The bank also anticipates roughly CHF200 million of negative revenues and provisions for credit losses related to the war's impact on counterparties and credit risks. Credit Suisse will release its quarterly financial statement April 27.
* The U.K. intends to rescind PJSC Moscow Exchange MICEX-RTS's status as a recognized bourse in light of Russia's invasion of Ukraine. The move would remove certain U.K. tax incentives to investors trading in securities on the bourse in the future, although existing investments will be unaffected, the U.K.'s tax authority said.
➤ SocGen's exit from Russia off-loads business struggling to recover former glory
Russian subsidiary Rosbank had become a less profitable part of the Société Générale group since its peak years prior to the fall in global energy prices and Russia's annexation of Crimea in 2014.
READ MORE about the market reaction and industry impact of the evolving situation in Russia and Ukraine in our new Issue in Focus.
BANKING
* German financial regulator BaFin named a special representative to help manage Frankfurt-based VTB Bank (Europe) SE, the European arm of Russia-based VTB Bank PJSC, Reuters wrote, citing a statement from the regulator. The unnamed special representative will continue winding down VTB Bank (Europe)'s business, which began after its sanctions-hit parent could no longer provide liquidity.
* Separately, BaFin appointed a special representative for Frankfurt-based Ziraat Bank International AG, a unit of Turkish lender Türkiye Cumhuriyeti Ziraat Bankasi AS, Reuters reported. The move was to ensure the unit complies with the mandates of local anti-money laundering laws.
* In just a month, Spain's Banco Santander SA repurchased its own shares worth €467.4 million, or 54% of the €865 million maximum amount under its current share buyback program, Europa Press reported.
* The Icelandic government will not press ahead with the planned sale of its remaining stake in Íslandsbanki hf., citing a lack of transparency in last month's transaction. The state sold a 22.5% stake in the bank in March through an accelerated bookbuilding offering for a total of 52.65 billion Icelandic kronur.
* Jyske Bank A/S upgraded its 2022 profit outlook, saying its EPS is now expected to be between 44 Danish kroner to 50 kroner, equivalent to a net profit of 3.0 billion kroner to 3.4 billion kroner. The bank previously expected a 2022 EPS of 40 kroner to 46 kroner. For the first quarter, the bank said its pretax profit is expected to be slightly below 1.1 billion kroner.
* ABN AMRO Bank NV will begin charging retail clients a portion of due diligence and transaction monitoring costs beginning July 1. The Dutch lender said customers will soon receive letters on the additional charges, adding that the actual amount to be charged will depend "on the legal form of the business" with the bank.
* A new neobank backed by Hypothekarbank Lenzburg AG was launched in Switzerland, Handelszeitung wrote. EZYfinance will exclusively target small and medium-sized companies, offering automated invoicing and auditing and other digital business banking services. The portal is a brand of superVX AG, the software startup that developed automated billing and expense payment system EZYcount.
* Tim Tu stepped down as CEO of Credit Suisse Group's securities joint venture in China, Bloomberg News reported, citing a memo confirmed by a bank spokesperson. Daniel Qiu, investment banking and capital markets head at Credit Suisse Securities (China) Ltd., will serve as interim CEO of the venture. The departure comes as the Swiss bank ramps up its ambitions to gain market share in China.
FINANCIAL SERVICES
* U.S. online brokerage platform Robinhood Markets Inc. is acquiring Ziglu Ltd., a U.K.-based electronic money institution and crypto-asset firm, for an undisclosed sum. The deal is expected to accelerate Robinhood's expansion ambitions across Europe.
* U.K.-based investment company 17Capital LLP, which is backed by U.S. asset manager Oaktree Capital, has raised $2.9 billion for its first credit fund, managing partner Pierre-Antoine de Selancy told the Financial Times in an interview. The maiden credit fund is targeting a yield of up to 9%.
POLICY AND REGULATION
* Russian companies must delist their depositary receipts from foreign stock exchanges by May 5 and subsequently convert them into Russian securities, the Russian central bank said. Separately, the regulator said Russian banks will not be required to publish financial statements for the period beginning Dec. 31, 2021, to Oct. 1, 2022, while lenders operating in Russia will also not be required to disclose capital and risk information during the same period.
* The Russian central bank will no longer disclose the names of banks connected to the System for Transfer of Financial Messages, the Russian equivalent of the Swift financial messaging system, Reuters reported, citing an emailed statement from the central bank. Most Russian banks, as well as 52 financial institutions from 12 countries, have access to the Russian financial messaging system, central bank Governor Elvira Nabiullina recently said.
INDUSTRY NEWS
* Canada imposed additional sanctions against Russia over its invasion of Ukraine, targeting "14 close associates of the Russian regime," including Russian central bank Governor Elvira Nabiullina.
Deza Mones, Arno Maierbrugger, Meike Wijers, Esben Svendsen, Beata Fojcik, Yael Schrage, Stéphanie Salti, Praxilla Trabattoni and Nelson Siqueira contributed to this report.
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