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S&P cuts Deutsche; RBS CFO to leave; political woes hit Spanish, Italian banks

S&P Global Market Intelligence offers our top picks of banking news stories and more published throughout the week.

Deutsche Bank in the news

* S&P Global Ratings lowered the long-term issuer credit ratings of Deutsche Bank AG and its core subsidiaries to BBB+ from A-, with a stable outlook, saying the bank's new strategy envisages a deeper restructuring than previously expected.

* Shares in the Germany's biggest bank hit an all-time low close of €9.16 per share May 31 after reports that the U.S. Federal Deposit Insurance Corp. has added unit Deutsche Bank Trust Co. Americas to its list of "problem banks."

* The bank is also expected to face criminal charges in Australia over alleged cartel conduct in relation to a 2015 share issuance by Australia & New Zealand Banking Group Ltd. The German lender has also started cutting jobs at its Australian equities and trading division as part of a global effort to reduce headcount, and is shutting down its equities research department in Dubai.

Political woes hit banks

* Italy's main banks saw their share prices plunge May 29 after President Sergio Mattarella blocked the appointment of Paolo Savona, the euroskeptic candidate for finance minister. The Italian political chaos, which has affected European markets, was also expected to delay the U.K. government's plan to sell a significant part of its 70% stake in Royal Bank of Scotland Group PLC.

* In Spain, shares in Spanish banks fell sharply in late trading May 31 as the likelihood of a change in government grew after the Basque Nationalist Party said it would support a motion of no confidence in Prime Minister Mariano Rajoy. Socialist Pedro Sánchez became prime minister of Spain after winning a no confidence vote against Rajoy, but the new minority government will struggle to muster parliamentary support and could be forced to call elections soon.

Buyers and sellers

* Piraeus Bank SA agreed to sell a portfolio of nonperforming exposures to U.S.-based Bain Capital Credit LP, subject to customary conditions and Greek regulatory approvals.

* Online trading services provider GAIN Capital Holdings Inc. has agreed to sell its GTX ECN business to Deutsche Börse AG's foreign exchange unit, 360T, for $100 million.

* Three potential buyers are eyeing Sberbank of Russia's Ukrainian unit Sberbank JSC.

* Union Bancaire Privée UBP SA will acquire, through unit Union Bancaire Privée (Europe) SA, the Luxembourg-based private banking subsidiary of Sweden's Carnegie Investment Bank AB (publ).

* The Polish Financial Supervision Authority allowed Bank Zachodni WBK SA to acquire the demerged part of Deutsche Bank Polska SA's operations.

Earnings

* National Bank of Greece SA reported first-quarter profit after tax from continuing operations of €20 million, compared to a loss of €9 million in the same period in 2017. Greek peers Alpha Bank AE and Eurobank Ergasias SA also reported first-quarter results.

* Landesbank Baden-Württemberg reported an IFRS 9 net consolidated profit for the first quarter of €84 million, up from the restated €79 million a year ago.

* Norddeutsche Landesbank Girozentrale reported first-quarter consolidated profit after tax of €43 million under IFRS 9, down from an adjusted €248 million under IAS 39 in the same period in 2017.

* Landesbank Hessen-Thüringen Girozentrale, known as Helaba, reported first-quarter consolidated net profit under International Financial Reporting Standards of €52 million, up from €47 million in the same period in 2017.

* PAO Sberbank of Russia reported a first-quarter group net profit of 212.1 billion Russian rubles under the new IFRS 9 accounting standards, up from 166.6 billion rubles in the same period in 2017.

* Bank of Cyprus Holdings PLC reported first-quarter unaudited consolidated profit attributable to owners of the company of €43.2 million on a statutory basis, up from €2.2 million earned in the same period in 2017.

In other news

* Ewen Stevenson has resigned as CFO and an executive director of the group to pursue another opportunity. The search for Stevenson's successor will commence immediately, but he will remain in the role to oversee an orderly handover. Stevenson is believed to be among the favorites to replace HSBC Holdings PLC Group Finance Director Iain Mackay.

* The U.K. Financial Conduct Authority said on overdrafts that it was considering directly intervening in how banks structure their prices, including a ban on fixed fees, introducing price-capping and requiring that the rate for unarranged overdrafts aligned with that for arranged overdrafts, as well as measures to ensure that banks take active steps to address repeat overdraft use.

* UBS Group AG appointed Jonathan Hill to be an adviser for matters related to Britain's exit from the EU. Hill resigned from the role of European Commissioner for financial stability, financial services and the capital markets union in 2016, and has since then helped to establish Prosperity UK, a forum for businessmen to debate Brexit and consider Britain's future outside the bloc.

Featured during the week on S&P Global Market Intelligence

RBS hints at a return to dividend payments as CFO quits: The recent Department of Justice settlement removed the final obstacle to Royal Bank of Scotland Group paying its first dividend for a decade, Chairman Sir Howard Davies told the lender's annual general meeting.

SocGen legal settlements set to quell investor worries: As the French bank seeks growth in a highly competitive, low-interest rate environment, putting the cases to bed will help assuage investors who are worried about SocGen's legal costs, industry experts said.

Boston Consulting Group: Sluggish growth to persist for western European banks: Revenues of Western European retail banks will grow at a slower pace than other global regions over the next three years as unfavorable regulation will outweigh any benefits from interest rate rises, according to the Boston Consulting Group.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings.