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BTG Pactual's Q1 profit jumps 25% annually

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BTG Pactual's Q1 profit jumps 25% annually

* Banco BTG PactualSA posted first-quarter net income of about 1.07 billion Brazilian reais, up 25%from 854 million reais in the year-ago period. The company's investment bankingrevenues increased 52% annually in the first quarter primarily due to higherfinancial advisory revenues. Separately, BTG Pactual Group will end up with a 30% in following thecompletion of a capital increase designed to fund the latter's acquisition ofBSI SA.

MEXICO ANDCENTRAL AMERICA

* Theimplementation of new regulatory requirements could affect Mexican insurers'balance sheets, particularly in their reserves and equity, to Fitch Ratings. The degreeto which companies are exposed to regulatory changes will depend on their focusand/or business concentration, the rating agency said.

* said theMexican Insurance Commission gave its approvalfor unit El Águila Compañía de Seguros SA de CV to launch specialty property& casualty operations in Mexico. Ydhelio Espinosa has been appointed divisionalpresident of the new operation, which plans to begin underwriting risks on July1.

* A.M. Best saidIstmo Compañía de ReasegurosInc.'s financial strength rating and issuer credit ratings remain unchangedfollowing regulatory intervention at Balboa Bank & Trust Corp., which was recently seizeddue to alleged links to money laundering. Istmo's exposure is limited to anapproximate 12.43% ownership in Balboa Bank.

* Banking activityin the Mexican state of Querétaro has seen significant improvementas the state's economy has become more dynamic, El Economista reported, citing Enrique Arce, president of thestate's banking center. Growth in loans and deposits in Querétaro has beenabove the national average of around 14%, Arce said.

BRAZIL

* Verde AssetManagement SA's Verde FIC FIM fund posted a consolidated returnof 1.76% in April, the strongest level since November 2015, Reuters reported,citing a letter to investors.

* Brazilian VicePresident Michel Temer, who would become the country's acting president if theSenate votes to put Dilma Rousseff on trial for violating accounting laws,plans to reducethe number of ministries to 22 from 32, Reuters reported, citing a closeadviser. The Senate will decidePresident Rousseff's fate on May 11.

* said it signed an agreement with Brazil's Defense Ministryto support the developmentof companies in the country's defense industry. BNDES also reached aninformation-sharing agreementwith Brazil's comptroller general, ValorEconômico reported.

* A new investmentfund from FIR Capital BZPlan will provide 50 million Brazilian reais in initialfinancingto 12 technology startups in the south of Brazil that have annual revenues ofup to 3.6 million reais, Valor Econômicoreported.

* The boards ofBanco Nacional de Desenvolvimento Econômico e Social and innovation agencyFinanciadora de Estudos e Projetos have approved1.2 billion Brazilian reais of investments in innovative mining projects, O Globo reported.

* Fitch Ratingsdowngraded Cielo SA'slong-term foreign and local currency issuer default ratings to BB+ and BBB-from BBB- and BBB, respectively. The movefollows the downgrade of Brazil's sovereign rating earlier in May.

* Brazilian closed pensionfunds will find it difficultto restore surpluses over the coming 12 to 18 months as actuarial targets,which are typically linked to inflation, are expected to remain elevated,Moody's said.

* booked first-quarter netincome of 8 million Brazilian reais, down from 10 million reais a year ago.The bank's fee income totaled 16 million reais in the quarter, down 23.1%compared to a year earlier.

ANDEAN

* Sevenfinancial institutions in Peru have subscribedto a new mobile wallet service called Bim, ElComercio reported, citing local banking association Asbanc.

SOUTHERN CONE

* Grupo FinancieroGalicia SA posted first-quarter net income of 1.35 billion Argentine pesos, up 40.7%from the 958 million pesos earned in the year-ago period. The company's financialincome for the quarter reached 8.79 billion pesos, growing from 5.57 billionpesos a year earlier.

* Fitch Ratings upgraded Argentina's long-term foreign currency issuerdefault rating to B from RD following the resumption of the country's debtpayments with restructured bondholders. Argentina was able to resume its debtservice through strong political support, even with President Mauricio Macri'ssmall party backing in Congress, Fitch noted.

* Grupo SupervielleSA and some of its shareholders commenced an initial publicoffering of thecompany's class B shares as part of a global offering. The offering entails104,166,667 class B shares that can be represented by American depositoryshares.

* Chilean holding company Empresas Juan Yarur SPA said it completed the of a 40% stake in insurancesubsidiaries BCI SegurosGenerales SA, BCISeguros Vida SA and Zenit Seguros Generales SA to Spain's for atotal of 156.97 billion Chilean pesos.

* Argentina's government is considering raisingthe lower limit at which a tax on personal assets becomes effective to 1.5million Argentine pesos from 305,000 pesos currently, La Nacion reported.

* Argentine President Mauricio Macri announced 137 billion Argentinepesos in loansfor small and medium-sized enterprises, as well as tax benefits to boostactivity and employment in the sector, LaNacion reported.

* Chilean legislators signed an agreement to create a working group thatwill promoteethical banking principles and practices in the country, Pulso reported.

PAN LATIN AMERICA

* The global speculative-grade default rate will continue to risein 2016 and reach 5.0% in November, according to Moody's. The default rate isexpected to stabilize in the range of 4.5% to 5.0% through April 2017.

* Interest rates will probably rise only very gradually and may notreturn to the average levels seen in the 10 to 20 years before the globalfinancial crisis, Moody's said. The lower level of interest rates reflects thedamage caused by the financial crisis in 2008 and 2009, which was followed byweaker economic growth, high unemployment and elevated debt levels in manycountries, the rating agency noted.

IN OTHER PARTSOF THE WORLD

* TheInternational Monetary Fund said that the Monetary Authority of Singapore should be prepared tomake more adjustments in case deflationtakes root, Bloomberg News reported. Singapore's central bank softened policylast month, announcing it will not seek currency appreciation.

* Australia's majorbanks laidoff over 2,500 employees in the first half, lowering costs throughrestructuring and increasing online transactions in a tough revenueenvironment, The Australian reported.

* Indonesia hasmandated Mizuho Financial Group Inc., Mitsubishi UFJ Morgan Stanley SecuritiesCo. Ltd. and SMBC Nikko Securities Inc. as book runners for its Samurai bond offering, which is expected to come withno guarantees from Japan Bank for International Cooperation, Reuters reported.

* The U.K.Financial Conduct Authority said former Deutsche Bank AG managing director Martyn Dodgson andchartered accountant Andrew Hind, ex-finance director of retail chain Topshop,were convictedof conspiring to engage in insider dealing between November 2006 and March2010. The pair faceup to seven years in prison, The Guardiannotes. Andrew Harrison, Ben Anderson and Iraj Parvizi, the other threedefendants in the case, were acquitted.

Matthew Crazecontributed to this article.

TheDaily Dose has an editorial deadline of 8:00 a.m. São Paulo time, and scansnews sources published in English, Portuguese and Spanish. Some external linksmay require a subscription.