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ING faces union ire; Novo Banco sees Chinese interest; Russian central bank overhauls


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Commercial Banking: June 22nd Edition


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Commercial Banking Newsletter June Edition - 2022

ING faces union ire; Novo Banco sees Chinese interest; Russian central bank overhauls

Mersch speaksagainst low rates: ECB Executive Board member Yves Mersch saidlow interest rates put pressure on banks' profitability and noted analystforecasts that ROE will fall to 2% from 6.5% over the next five years.

* Moody's said increasing nonperforming loans in Italy, Spain and Ireland continue toweigh on banks' balance sheets, the housing market and credit availability. Therating agency stressed that while securitization can help ease pressure onbanks' balance sheets to an extent, the efficiency of recovery processes playsa vital role in collateral performance.

* The European Commission will not hold talks with U.K.Prime Minister Theresa May until Article 50 of the Lisbon Treaty isofficially triggered, Bloomberg News writes.

* The Britishgovernment is poised to rule out an interim agreement with the EU that willmaintain financial services firms' access to the EU single market beyond thetwo-year period, insiders tell Bloomberg News. The pound yesterday fell 1.1% to $1.2834 — its weakest level since the referendum — amid growingspeculation that May could be prepared to give up membership of the Europeansingle market.

* CitigroupInc.'s U.K. head, JamesBardrick, said banks are likely to consider moving London-based jobs to otherEU countries even if Britain is able to negotiate access to the EU financialservices market, Reuters writes.


Stress test scenariosdouble for UK banks: The Bank of England yesterday that its 2017 stress testwill, for the first time, include two scenarios. The annual cyclical scenariowill be used in next year's test alongside a so-called exploratory scenario.The results of this year's stress test is set to be published Nov. 30.

*  said AngusWink retired as CEO for Europe, the Middle East and Africa after 26 years at thecompany. Tullett Prebon also announced the members of the global executive committee of TP ICAP, the enlargedcompany that will emerge on completion of its acquisition ofICAP Plc's globalhybrid voice broking and information business. Frits Vogels will become CEO ofTP ICAP EMEA, John Abularrage will become CEO of TP ICAP Americas and HughGallagher will become CEO of TP ICAP in Asia-Pacific, among other appointments.

*  appointedTorry Berntsen CEO and head of corporate and institutional banking for theAmericas region, Reuters notes.

*  agreedto pay $120 million to settle an investigation by the U.S. state ofConnecticut into the lender's underwriting of RMBS in the run-up to the2008 financial crisis, Reuters reports.

* Some 140 small businesses that claim RBS drove them to insolvency for its own gain are poised to launch acoordinated lawsuit against the bank early next year, City A.M. writes.

* Santander UKPlc is teaming up with equity crowdfunding site Crowdfunder toprovide £200,000 to social enterprises across the U.K., the Financial Times notes.The deal marks the first tie-up between a high street lender and an alternativefinance company.

* Gerry Cross, director of policy and risk at the CentralBank of Ireland, rejected the notion that the authorization process forfinancial firms seeking to move to Ireland from the U.K. could be expeditedjust because the firms had already been authorized by British regulators,Reuters reports.


UniCredit BankAustria names CFO: UniCreditBank Austria AG reshuffled its top management following the transferof its central and eastern European division to parent company , Die Presse reports.The bank named Gregor Hofstätter-Pobst CFO, replacing Mirko Bianchi, who movesto UniCredit in Milan. Hofstätter-Pobst most recently served as CFO anddirector of UniCredit Bank CzechRepublic and Slovakia a.s. Carlo Vivaldi, UniCredit Bank AustriaDeputy CEO and head of CEE banking, moves to the parent group and will bereplaced as deputy CEO in Vienna by current COO Romeo Collina.

*  named Brian Pitzco-head of its internet investment banking group alongside Riaz Ladhabhoy,Reuters notes. Pitz previously served as a managing director in equity research atJefferies Group.

* AutonomousResearch said Deutsche Bank will likely conduct a rights issue to raise fundsto cope with mounting legal costs, Bloomberg News writes.

* TalanxAG is forging partnerships with Silicon Valley innovation platformPlug and Play and London-based startup accelerator Startupbootcamp as it seeks tosecure a hold in the growing field of insurtechs. The company has alsoestablished its own digital laboratory, Handelsblattreports.

* Swiss property specialist Avobis appointed formerBank Julius Baer & Co.Ltd. executive Alessandro Carroccia CEO, reports.

* German tax investigators from the state of NorthRhine-Westphalia launched tax-evasion probes against 57 banks in Switzerland,Liechtenstein, Austria and Luxembourg over the last two years, Süddeutsche Zeitung reports.


Union uproar followsING strategy update: Belgian unions have called for a strike on Fridayafter the Belgian unit of INGGroep NV was hit hard in a drastic overhaul of the business, Het Financieele Dagblad reports.Belgian Prime Minister Charles Michel said on Twitter he is "supportive ofthe workers." Following the restructuring, ING's Belgian branch networkwill drop to 650, with Record Bank disappearing from Belgian streetsaltogether. ING BelgiëNV currently has 709 local offices while Record Bank has 536franchises. LesEchos and L'Echo alsoreport.

* BNP ParibasSA appointed Daniel Thielemans CEO of its operations in theNetherlands, replacing Anne Marie Verstraeten who was promoted to lead BNP'sBritish unit, Het Financieele Dagbladreports.

* AXA's AXA Investment Managers unit will merge itsstructured finance and alternative solutions teams to form a global alternativecredit platform headed by Deborah Shire, L'Agefireports.

* A French government bill aimed at reducing the cost ofrepatriating employees to France from the U.K. as a result of Brexit,especially in the banking and finance sector, is being pushed throughparliament, Les Echos reports.The government is alsoconsidering lowering payroll taxes in the finance sector.

* The €2.2 billion tax credit obtained by in connection withthe Jérôme Kerviel affair might be re-examined in light of court rulings thatthe bank was jointly responsible for the loss, the French junior minister incharge of the budget toldBFM Business.


China MinshengBanking in fray for Novo Banco: Chinese group hasbeen negotiating since May a potential acquisition of , Públicoreports. Observador writesthat Novo Banco has targeted the Chinese bank as a leading investor if aprivate placement were to take place. Jornalde Negócios also notes.

* MillenniumBCP CEO Nuno Amado believes negotiations with Chinese groupFosun Industrial HoldingsLtd. on the acquisition of a stake in the lender are progressingtoward a successful deal, Expresso reports.

* Customers hit by the collapse of refused Banco Santander Totta SA's solution to recover moneylost during the resolution of Banif, according to Jornal de Negócios. Totta said that in light of the refusal,negotiations with customers are over.

* The government of Portugal ruled out the possibility of asecond economic bailout, Jornal deNegócios writes. Observadoralso notes.

* Banco de Portugal Governor Carlos Costa saidlocal banks are in "criticalneed" of additional capital, Reuters writes.


Pioneer's new ownerto be picked after referendum: UniCreditwill wait until the Dec. 4 referendum on Italian Prime Minister MatteoRenzi's constitutional reform before choosing a buyer for unit ,insiders tell Reuters.

* Italian Economy Minister Pier Carlo Padoan met with Bankof Italy Governor Ignazio Visco and senior Italian bankers to discuss ways toproceed with the sale of the four banks rescued last year, Reuters writes. The Atlante fund, whose topmanagement was present at the meeting, could acquire 3.4 billion in bad loans present on the four banks'books, La Repubblica writes. Padoan said he saw no need fornationalizing troubled Italian banks, Reuters writes.

*  isprepared to acquire three of the four rescued Italian banks, but only at a"symbolic price," insiders tell Reuters.

* BancaPopolare di Milano Scarl chief Giuseppe Castagna tellsIl Sole 24 Ore that the bank could be taken over should shareholders notapprove its planned merger with Banco Popolare Società Cooperativa.

* Italian asset manager Azimut Holding SpA will pay an extraordinary dividend of1 per shareafter completing an internal reorganization, MF says.

* BancaPopolare dell'Emilia Romagna SC is simplifying its corporatestructure, reducing the number of organizational units to 339 from 650, MFwrites.

* did not manage to raisethe entire €748 million it needed in its capital hike, leaving a capital gap of€70 million, Euro2day says. Measures to fill the hole are expectedto be finalized by Monday.


CET1 needs at Nordea,Handelsbanken: The Swedish FSA increased the Common Equity Tier 1 ratiorequirement for Nordea Bank AB(publ) to 17.3%. Nordea, which had a CET1 ratio of 16.8% at the endof June, said it expects to meet the requirement by the end of the thirdquarter. The bank also said a final decision on its dividend policy will betaken by its shareholders meeting in 2017.

* Meanwhile, saidthe Swedish FSA assesses that its requirement for CET1 capital at 2016-endcorresponds to a 21.1% CET1, Reuters writes. The bank's CET1 ratio at the end ofJune was 23.0%.

* Separately,Handelsbanken appointed Carina Åkerström deputy group CEO. Åkerström currently serves as head ofHandelsbanken in Stockholm.


Russian central bankoverhaul: Russian central bank head Elvira Nabiullina took overresponsibility for monetary policy from First Deputy Dmitry Tulin, who willtake responsibility for banking supervision, replacing Mikhail Sukhov andAlexei Simanovsky, Vedomosti,Kommersant and RBK Dailyreport. Sukhov will leave the central bank, while Simanovsky will serve asNabiullina's adviser. Nabiullina said that the current supervision system needsan overhaul because it is unable to solve problems in the banking sector.Bloomberg News also reports.

* Vnesheconombank units GLOBEX Commercial Bank JSC and were excluded from thecentral bank's list of lenders in which asset managers can keep pension fundsas well as funds under military mortgage programs, Kommersant reports.

* The Russian Ministry of Agriculture is considering cuttingfunds earmarked for the 2017 recapitalization of to 5billion rubles from 10 billion rubles, Vedomostireports.

* The joint venture between 's SantanderConsumer Finance and Banque PSA Finance, the financial arm of automobile groupPSA Peugeot Citroën, is now fully operational in Poland, Expansión reports.

* PZUSA presented its new capital and dividend policy through 2020,under which not more than 20% of profits will be used to finance organic growthand innovations and up to 30% earmarked for potential M&A, Puls Biznesu reports. No less than 50% will be recommendedfor dividend payments.

* As of July 2017, the Czech central bank will have theauthority to set mortgage loan parameters for banks, E15 says.


Asia-Pacific: Australian banks to face probe; Canadian fund manager to buy stakein Edelweiss unit

Middle East & Africa: Kenya's Family Bank to shed jobs; Mozambican banks 'in goodhealth'

Latin America: Colombians reject FARC peace deal; MAPFRE Chile gets new CEO

North America: Janus, Henderson to merge; Illinois ready to suspend business withWells

North America Insurance: Wisconsin health co-op gets capital infusion; health insurers preferHMO over PPO plan


Janus,Henderson Global execs see shared industry vision as drivingmerger: The principal figures in a merger between Janus Capital andHenderson Group are confident that a proposed transaction will help spur diversification,while helping the companies expand their global presence.

Santanderlowers forecasts for UK, but analysts see light in emergingmarkets: The fallout of Britain's vote to leave the EU prompted adownward revision in targets for Santander's U.K. operations, but analystsexpressed optimism about units in a number of emerging markets, includingBrazil.

Data Dispatch:UK Lloyd's market a top target for deal-hungry, deep-pocketed insurers:Lloyd's of London has become a popular hunting ground for companies willing topay a premium for international growth, after Canada Pension Plan InvestmentBoard became the ninth acquirer in less than two years to pay more than $1billion for a Lloyd's platform.

Xana Kakoty, Ed Meza,Danielle Rossingh, Esben Svendsen, Beata Fojcik, Thanasis Kakalis, Ali Kayalar,Heather O'Brian, Brian McCulloch, Praxilla Trabattoni and Mariana Aldanocontributed to this report.

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