trending Market Intelligence /marketintelligence/en/news-insights/trending/c0H5yFOdKU2xzMRoE72H_w2 content esgSubNav
In This List

Weekly news through July 22


Banking Essentials Newsletter May 29th Edition


Managed Services Insights: The client lifecycle management solution


Technology & Automation Insights: Elevating KYC and onboarding efficiency


Banking Essentials Newsletter: May 15th Edition

Weekly news through July 22

S&P Global MarketIntelligence offers our top picks of banking news stories and more publishedthroughout the week.

Regulators' moves

* A failedcoup attempt promptedthe Turkish central bank to promise unlimited liquidity to banks to ensure financialstability. Thecentral bank also cuttwo key benchmark rates.

Elsewhere inTurkey, the activities of AsyaKatilim Bankasi AS were temporarily after authorities failed toreceive bids during the tender for the bank's sale. Bank Asya was founded byfollowers of U.S.-based cleric Fethullah Gülen, whom the government is blamingfor the failed putsch.  

* At itsfirst policy meeting after the U.K. voted to leave the EU, the ECB's GoverningCouncil kept keyinterest rates unchanged. ECB President Mario Draghi that the increase in uncertaintyand volatility that followed the vote was weathered "with encouragingresilience," but promised that the council will continue to keep a closeeye on economic and financial market developments.

* Germany'scentral bank said theEuropean Stability Mechanism's responsibilities must be expanded to includesome of those currently held by the European Commission and the ECB.

The bottom line

*Danske Bank A/Sposted second-quarter netprofit attributable to shareholders of the parent company of 4.26billion Danish kroner, compared to 4.31 billion kroner a year ago.

*Swedbank AB (publ)'ssecond-quarter profitattributable to shareholders increased year over year to 6.27 billion Swedishkronor from 3.67 billion kronor on the back of a tax-exempt windfall of 2.12billion kronor from Visa Europe's sale. CEO Birgitte Bonnesen an increase in riskprovisions to the early closing of loan restructuring negotiations.

*Nordea Bank AB (publ)reported second-quarter netprofit of €996 million, up year over year from €952 million. Netinterest income was basically flat quarter over quarter, but Nordea it to improve in thesecond half.

* Meanwhilein Spain, Banco de SabadellSA reported attributable net profit of €173.3 million in the second quarter, comparedto €177.6 million a year ago. Excluding unit TSB Banking Group Plc, Sabadell's second-quarter profitamounted to €89.3 million.

*Bankinter SA'ssecond-quarter netincome stood at €181.2 million, up from €102.2 million a yearearlier. Excluding Portugal or integration and strategic projects, the bank'snet income for the period was €98.2 million.

* Other Spanish lenders thatposted first-half this week were Bankia SA and ABANCA Corporación Bancaria SA.

Potential deals

*Santander UK Plc issaid to be looking into a restructured asset transfer to acquire 'sWilliams & Glyn business. Sources said it is unclear whether such adeal is feasible.

* Aplan that submitted to the ECB reportedly includes the sale of its entirebad loan portfolio at a loss of €1 billion to €2.7 billion.

* Italy'scentral bank reportedly received at least three binding for four small lenders rescued in2015. U.S.-based Apollo Global Management LLC and private equity firm Lone Starare among the biddersfor Banca delle MarcheSpA, Banca Popolaredell'Etruria e del Lazio SC, Cassa di Risparmio della Provincia di Chieti SpA andCARIFE SpA.

*Banca IFIS SpA isthought to be close to agreeing the purchase of fromGeneral Electric Co.for about €200 million.

*UK Asset ResolutionLtd.'s sale of a £13 billion asset to affiliates of U.S. privateequity firm Cerberus Capital Management is in the final stage.

Done deals

*BinckBank NV acquireda €340 million Dutch residential mortgage portfolio from unit . The is aligned with BinckBank'sstrategic goals to diversify its revenue streams and become less dependent ontransaction-related income.

*Nova Ljubljanska Bankadd agreed to sell a nonperforming loan package with a face value of€104 million from its retail business to an unnamed buyer.

*Anadolu Endüstri HoldingA.S. will sell its 25% stake in Alternatifbank AS to Qatar-based for at least$222.5 million.

*Banque Fédérative du CréditMutuel SA completed the acquisition of GE's leasing and factoring businesses inFrance and Germany.

In other news

*Deutsche Bank AG isreportedly considering dropping its plan to sell Deutsche Postbank AG and might instead reintegrate theunit into the parent group even though it recently started operatingindependently again.

* In response to an ElPaís report saying BancoPopular Español SA is planning a massive cost-cutting initiativethat could include layoffs of about 2,500 employees and the closure of some 300offices, the bank said it is undertaking an operational that will dictate the actionsit needs to take to achieve its objectives.

* BarclaysPlc and Royal Bank ofScotland Group Plc will earn cash of some £104 million and £150million, respectively, on the closing of MasterCard Inc.'s planned of a 92.4% stake inVocaLink HoldingsLtd. Co-operativeBank Plc said it stands to gain cash proceeds of approximately£25.1 million on closing.

* HSBCHoldings Plc found no breach of conduct in an internal of a $3.5 billioncurrency trade that has led to the arrest of one of its employees and the issuance of anarrest warrant for a former employee. Meanwhile, both HSBC and the U.S. Departmentof Justice are said to be looking to block the publication of an independent monitoringbody's report on the bank's program to improve its anti-money launderingcontrols.

*ABN AMRO Group NV CEOGerrit Zalm is reportedly looking to step down from his post earlier than expected. Executiveboard member Chris Vogelzang is said to be the most likely internal candidateto replace Zalm.

*Julius Bär Gruppe AGappointed Nic Dreckmann COO to replace Gregory Gatesman, among other managementchanges. Julius Bäralso appointed AlbertHenriques CEO of its Monaco unit. Henriques will succeed Alain Ucari, who willbecome chairman.

Featured during the week on S&P GlobalMarket Intelligence

: ECB President Mario Draghiexpressed support for state involvement in reducing nonperforming loans asItaly seeks to address the issue of Banca Monte dei Paschi.

: Nonperforming assets remain high in Spain andcould seriously threaten bank capital when stressed.

: U.K. banks are dumpingentire groups of customers perceived as posing a high risk of financial crime.The regulator isn't happy.

: German lenders, particularly in the savings and cooperativesectors, are proving slow to cut costs in response to the pressure from lowinterest rates.