trending Market Intelligence /marketintelligence/en/news-insights/trending/G6-8AnLQ5NqdQBu4tvJirg2 content esgSubNav
Log in to other products

 /


Looking for more?

Contact Us
In This List

RBS settlement stalemate; SocGen launches ALD IPO; BNP Paribas fined

BLOG

Banking Essentials Newsletter: June Edition

Case Study

กรณีศึกษา A Bank Takes its Project Finance Assessments to a New Level

Blog

Fintech Intelligence Digital Newsletter: May 2021

Blog

Financial Institutions Factor Transition Risk into Climate-Related Stress Testing


RBS settlement stalemate; SocGen launches ALD IPO; BNP Paribas fined

* Stefan Ingves, chairman of the Basel Committee on Banking Supervision, proposed a two-year extension to 2027 of the phase-in period for banks to adopt the new output floor for risk-weighted assets, but remains adamant on keeping the floor at 75%, Germany's Börsen-Zeitung reported.

* EU member states may be able to use taxpayer funds to help troubled banks dispose of nonperforming loans, Bloomberg News wrote, citing a May 31 EU report, which insisted that tackling banks' high NPLs "should not imply any deviation from the rules of the banking union."

* A survey by wealth manager Invesco showed that sovereign investors and central banks are making fewer investments in the U.K. following the country's decision to exit the EU, compared to other countries such as Germany and the U.S., City A.M. reported. The U.K.'s investment attractiveness fell to 5.5 of 10 in 2017, compared to 7.5 the previous year, while Germany's attractiveness rose to 7.8 from 7.0.

UK AND IRELAND

* Royal Bank of Scotland Group Plc failed to reach a final settlement agreement with a faction of shareholders within the RBoS Shareholder Action Group after CEO Ross McEwan declined to raise the 82 pence-per-share settlement offer to the remaining claimants suing the bank over its controversial capital increase in 2008, insiders told Sky News. Former RBS boss Fred Goodwin is due to appear in court if the trial goes ahead. The Financial Times and The Guardian also covered.

* HSBC Holdings Plc is offering staff cash bonuses of as much as £2,500 to encourage them to persuade colleagues to relocate to its new retail and commercial banking headquarters in Birmingham, which is due to open in January 2018, The Guardian reported. HSBC aims to have all staff in place by July 2018, City A.M. noted.

* Marlin Bidco Ltd., the company jointly owned by funds managed or advised by private equity firms Pollen Street Capital Ltd. and BC Partners LLP made an increased and final offer to acquire Shawbrook Group Plc. The new offer entitles Shawbrook shareholders to receive 340 pence per share which, along with an announced dividend, values the bank's entire share capital at approximately £868 million.

* Barclays Plc unit Barclays Bank Plc agreed to sell its majority stake in Barclays Bank of Zimbabwe Ltd. to Malawi-based First Merchant Bank Ltd. The British bank expects the transaction, which is expected to complete by the end of the third quarter, to result in a £292 million reduction in risk-weighted assets.

* Co-operative Bank Plc's U.S. hedge fund owners, including Silver Point Capital and Golden Tree Asset Management, are expected to invest £300 million and take full ownership of the bank, The Sunday Times reported. An insider told the paper that "the shape of the deal is expected in the coming weeks."

* AFH Financial Group Plc completed the acquisition of the entire issued share capital of face-to-face advisory firm Eunisure Ltd. for a maximum consideration of £4.5 million.

* The Investment Association warned the U.K. Financial Conduct Authority not to make any exception to the market rule requiring companies to list at least 25% of their shares to be included in the FTSE indexes, The Sunday Times reported. The statement comes amid reports that the London Stock Exchange Group Plc is seeking to host the secondary listing of a 5% stake of Saudi Arabian Oil Co. or Saudi Aramco.

* Leo Varadkar is expected to succeed Enda Kenny as Ireland's prime minister when the country's parliament sits June 13 after the ruling Fine Gael party elected him as its new leader Friday. Varadkar is expected to name Paschal Donohoe as finance minister to Michael Noonan, who is retiring.

* AXA's Irish unit AXA Insurance Ltd. named Dick O'Driscoll chairman, The Irish Times wrote.

GERMANY, SWITZERLAND AND AUSTRIA

* Former Deutsche Bank AG Chief Risk Officer Hugo Bänziger is rejecting demands by the lender's supervisory board to have former executives pay back bonuses as part of a plan to cover fines due to past misconduct, Frankfurter Allgemeine Zeitung wrote. Bänziger, who currently serves as a managing partner at Bank Lombard Odier & Co Ltd., said he had nothing to reproach himself for.

* Deutsche Bank did not respond to a request from U.S. Democratic lawmakers for details of internal reviews of U.S. President Donald Trump's personal accounts at the bank that were possibly linked to Russia and a Russian mirror trading scheme, Reuters wrote.

* Former Deutsche Bank trader David Liew pleaded guilty to fraud in a U.S. federal court in Chicago for his role in conspiring to manipulate futures contracts in precious metals, an insider told Bloomberg News. Liew is now cooperating with U.S. prosecutors.

* LBS Landesbausparkasse Südwest appointed Deputy CEO Wolfgang Kaltenbach to succeed outgoing CEO Tilmann Hesselbarth, who is stepping down due to family reasons, effective June 30. The lender also appointed Stefan Siebert, CEO of Sparkasse Baden-Baden Gaggenau, to its executive board, with the aim of having Siebert to take over as CEO in the medium term.

* The Cologne Regional Court postponed the criminal trial of Georg Baron von Ullmann, former supervisory board chairman of Sal. Oppenheim jr. & Cie. AG & Co. KGaA, Handelsblatt reported. Von Ullmann is facing a charge of breach of trust in connection with a property deal in Frankfurt. The trial, originally set for mid-June, will now begin Aug. 30 due to a personnel change at the court.

* Sparda-Bank Berlin eG will start charging a negative 0.4% annual interest rate on overnight deposits exceeding €100,000 from Sept. 1 and will calculate the rate on a quarterly basis, Handelsblatt reported.

* Portigon AG set aside provisions in its 2016 financial statement due to an ongoing investigation into possible dividend stripping, according to a DPA report carried by RP Online. Portigon is expecting an annual loss in the low three-digit-million range when it posts its 2016 figures, which were scheduled to be published in March but postponed to July 6.

* Credit Suisse Group AG plans to bundle its sales and trading services and global markets solutions division into a new unit, called International Trading Solution, which will launch in July, finews.ch reported.

FRANCE AND BENELUX

* Société Générale SA announced the launch of car leasing subsidiary ALD Automotive's IPO, outlining plans to sell a 20% stake in the unit, representing 80,820,728 million shares. The indicative price range for the offering was set at €14.20 to €17.40 per share, with gross proceeds expected to reach between €1.15 billion and €1.41 billion.

* French financial regulator ACPR fined BNP Paribas SA €10 million for insufficient controls for preventing money laundering and financing of terrorism, Reuters wrote. The French bank has two months to appeal against the fine, which followed a 2015 inspection that revealed shortcomings in its money laundering provisions.

* France's assurance-vie regulated savings accounts could enter the red with more money being taken out than taken in between now and 2020, Les Echos reported, citing a study by consultants Facts and Figures.

* Dutch life insurer Generali Leven needed a capital injection of €30 million from parent Generali Nederland in 2016 to stay afloat, Het Financieele Dagblad reported. The insurer received another capital injection in March of €40 million to keep its solvency above the 110% limit.

SPAIN AND PORTUGAL

* Íñigo Méndez de Vigo, a spokesman for the Spanish government, said Banco Popular Español SA is of "no major concern" to the government despite market concerns about the bank, adding that the lender will either be sold or undergo a capital increase and "nothing else," Expansión wrote. Separately, BlackRock Inc. has cut its stake in Banco Popular to 1.78% from 4%, according to Europa Press.

* BES Vénétie, the French arm of Novo Banco SA, is next in line for sale by the state-rescued bank as it seeks to offload nonstrategic assets, Jornal de Negócios reported. The Portuguese bank also sold its stake in Lisbon soccer club Benfica for nearly €2 million, the paper wrote.

* The Santa Casa da Misericórdia de Lisboa, a Portuguese charitable and social institution, is close to investing in Caixa Económica Montepio Geral, according to Jornal de Negócios. The charitable institution could buy a stake of up to 10% in the savings bank.

* The Banco de Portugal is working on regulations to allow bank accounts to be opened online, Lusa reported. Currently, customers are required to sign and present documents in person in order to open an account.

ITALY AND GREECE

* Private equity funds are not interested in investing in Banca Popolare di Vicenza SpA and Veneto Banca SpA, insiders told Reuters. The two banks are also seen reducing their workforce by a maximum 3,668 jobs through job cuts and asset sales, Milano Finanza said.

* Credito Fondiario SpA and Italfondiario have begun due diligence on a €29 billion nonperforming loan portfolio set to be disposed by Banca Monte dei Paschi di Siena SpA in a process that could wrap up at June-end and lead to a sales price of about 20% of the portfolio's nominal value, Milano Finanza wrote. Monte dei Paschi's shares could meanwhile resume trading in July after being suspended last December, Il Sole 24 Ore said.

* DoBank, the Italian nonperforming loan management group owned by Fortress, could list its shares on the Milan exchange in July, with the group's valuation seen at €700 million to €1 billion, Il Sole 24 Ore wrote.

* Maltese Prime Minister Joseph Muscat won a second term after calling a snap election last month amid corruption allegations against his wife and political allies, the Financial Times reported. Simon Busuttil, head of the opposition Nationalist Party, conceded defeat after Muscat's Labour Party won 55% of votes, securing an absolute majority in the 65-seat parliament, Reuters noted.

NORDIC COUNTRIES

* Yngve Slyngstad, CEO of Norges Bank Investment Management, said Norway's sovereign wealth fund intends to ask banks in which it has invested to disclose the carbon footprint of their loan books, Reuters reported.

* The Norwegian Consumer Council is taking a class-action lawsuit on behalf of 180,000 DNB ASA customers to the country's Court of Appeal, according to Dagens Næringsliv. The NCC contends that customers represented in the class-action lawsuit were promised actively managed funds by DNB, but that the bank delivered a passive investing service.

EASTERN EUROPE

* JSC Halyk Savings Bank of Kazakhstan and JSC Kazkommertsbank signed a framework agreement outlining further steps regarding a merger planned by the two banks, Reuters reported. Under the signed agreement, Halyk will acquire the stake of Kazkommertsbank's two biggest shareholders for a notional amount of 1 Kazakh tenge each, and will provide Kazkommertsbank with a capital injection after the latter transfers 2.4 trillion tenge of bad loans to Kazakhstan's state-run bad bank.

* Malgorzata Sadurska, Chief of the Chancellery of the Polish President, is expected to become new management board deputy president at PZU SA, Rzeczpospolita reported. She is reportedly set to replace Andrzej Jaworski, who resigned from the post at the end of May.

* The bonds of B&N Bank, Public Stock Co. Orient Express Bank, JSCB NOVIKOMBANK and five other banks with Fitch, Moody's and S&P ratings equal or lower than ?-/?3 and ?/?2 are accepted in repo transactions at 40% of their value as of June 1, and will not be accepted at all by the Russian central bank in repo deals from July 1, Vedomosti said. The regulator's decision is associated with excess liquidity of local banks and decrease in demand for refinancing.

* The Central Bank of Russia's deputy head Olga Skorobogatova said the regulator started working on a project aimed at introducing national cryptocurrency, Kommersant reported.

* The Polish Financial Supervision Authority filed for the bankruptcy of Polish savings and credit union SKOK Nike, Rzeczpospolita reported. SKOK Nike is the third credit union to collapse in Poland since the beginning of 2017, with banks and their customers continuing to pay for the Polish credit union sector's problems, the newspaper noted.

* S&P Global Ratings last week revised its outlook on Bulgaria to positive from stable, citing the country's continued economic recovery.

* NN Group NV's Romanian unit, NN Asigurari de Viata SA, appointed Anna Grzelonska CEO, effective July 1, Romania Insider reported. She replaces Marius Popescu, who was named general director of NN Hayat ve Emeklilik Turkey, with effect from April 1.

IN OTHER PARTS OF THE WORLD

Asia-Pacific: CIC, Blackstone ink deal; NAB, Israeli equity platform to collaborate

Middle East & Africa: S&P acts on Bahrain, South Africa; Kuwait values bourse for potential IPO

NOW FEATURED ON S&P GLOBAL MARKET INTELLIGENCE

Bail-in rules, easy ECB money curb covered bond issuance at Europe's banks: A slump in covered bond issuance is likely to prevail as long as European banks continue to feel the effects of new bail-in-able debt rules and ultra-cheap European Central Bank funding.

Deutsche Bank at disadvantage in sale of Polish unit: Deutsche Bank Polska is not likely to fetch much in a potential sale as the low profitability of the unit, the need sell it off in pieces and time pressure will leave little chance to negotiate a higher price, analysts say.

Leo Magno, Ed Meza, Meike Wijers, Gerard O'Dwyer, Beata Fojcik, Mike Hatzidakis, Ali Kayalar, Heather O'Brian, Brian McCulloch, Sophie Davies and Helen Popper contributed to this report.

The Daily Dose has an editorial deadline of 7 a.m. London time. Some external links may require a subscription. S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.