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ABN AMRO, other banks' post Q2 earnings; Worldpay agrees to Vantiv's £8B offer

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


* Credito Valtellinese SpA reported a first-half loss after noncontrolling interests of €194.8 million, compared to a profit of €19.1 million in the same period in 2016. Its net interest income fell to €198.8 million, from €211.1 million a year earlier.

* Co-operative Bank Plc registered a first-half loss of £139.7 million, or 30.94 pence per share, compared to a year-ago loss of £132.1 million, or 29.26 pence per share. Its net interest income rose on a yearly basis to £115.8 million from £105.8 million. The bank's capital-raising proposal is progressing to plan and "is currently on track to conclude by September," CEO Liam Coleman said.

* KBC Group NV's second-quarter profit after tax attributable to equity holders of the parent rose to €855 million from €721 million earned in the same period of 2016, according to IFRS. Second-quarter EPS was €2.01 compared to the year-ago €1.69, higher than the S&P Capital IQ consensus normalized EPS estimate for the quarter of €1.88. The bank's profits are largely attributable to currency trading on its own account and writing back loan-loss provisions in key markets, CEO Johan Thijs told analysts.

* Raiffeisen Bank International AG's second-quarter consolidated profit rose to €367 million, up from €96 million earned in the year-ago period. Net interest income amounted to €792 million, up from €738 million in the second quarter of 2016. The bank's plan to restructure and then list 15% of its shares in an IPO is on course, CEO Johann Strobl told analysts. "What we can say is we will do our best to convince the market that the bank is improving," he added.

* Aareal Bank AG reported second-quarter consolidated net income attributable to shareholders of the bank of €66 million, down from the adjusted €77 million in the same period of 2016. The German lender noted that the 2016 figures were adjusted due to a separate disclosure of negative interest. Net interest income declined year over year to €158 million from €177 million.

* JSC VTB Bank's net profit attributable to shareholders of the parent for the second quarter was 31.0 billion Russian rubles, up from a restated profit of 16.0 billion rubles in the same period a year ago. Its EPS rose year over year to 0.203 kopeck from 0.08 kopeck, while net interest income amounted to 114.1 billion rubles compared to 108.7 billion rubles in the second quarter of 2016.

* ABN AMRO Group NV reported second-quarter profit attributable to owners of the company of €938 million, up from €380 million earned in the year-ago period. The result was positively impacted by a book gain of €200 million on the sale of the Dutch lender's private banking business in Singapore, Hong Kong and Dubai and refinements of two risk models. Underlying EPS for the period was €1, compared to 69 cents a year earlier. The bank has "always been very cautious about Basel IV," CEO Kees van Dijkhuizen told analysts, adding that ABN AMRO Bank would wait for clarity on the so-called Basel IV norms before spending the capital it has piled up.

* Banco BPM SpA reported a reclassified, consolidated second-quarter net loss of €21.0 million compared to net income of €46.8 million in the same period in 2016. The bank's net interest income fell on a yearly basis to €511.3 million from €535.8 million.

Nationwide Building Society, OTP Bank Nyrt. and Türkiye Vakiflar Bankasi TAO also reported their second-quarter earnings during the week.

Executive appointments

* Otkritie Holding JSC's largest shareholder, Vadim Belyaev, was appointed as management board chairman, replacing Alexey Karakhan. Belyaev, returns to the company's top job after a two-year absence.

* Barclays Plc named Barry Rodrigues, former head of digital payments for Citigroup Inc.'s global consumer bank, to serve as CEO of Barclaycard International, effective early November. Rodrigues — who will report directly to Tim Throsby, president of Barclays International and CEO of the corporate and investment bank — replaces Amer Sajed, who retired as CEO at the end of July.

The British bank also named Michael Tyndall a director and head of foreign exchange flow options, effective September, Bloomberg News reported, citing a "person familiar with the move." Tyndall joins from Nomura Holdings Inc., where he most recently worked as executive director and foreign exchange options trader. Both Rodrigues and Tyndall will be based in New York.

* BNP Paribas SA appointed Matthew Duff to a role at its financial institutions debt capital markets bond syndicate desk, Thomson Reuters' IFR reported, citing "market sources." He succeeds Jennie White, who was recently hired by BlackRock Inc., having served as an associate director at Lloyds Bank Plc on its bond syndicate since April 2016.

* Deutsche Börse AG's supervisory board is mulling over potential successors for CEO Carsten Kengeter, who is in the middle of an ongoing insider trading investigation, Wirtschaftswoche reported, citing insiders. The company's CFO Gregor Pottmeyer and deputy CEO Andreas Preuss have been named as potential successors, an insider told the publication.

On the deal table

* National Bank of Greece SA signed a definitive agreement to sell its 100% stake in Vojvodanska banka a.d. Novi Sad and NBG Leasing doo, along with a portfolio of Serbian-risk corporate loans, to OTP Bank Nyrt.'s unit OTP Banka Srbija a.d. Novi Sad for an agreed consideration of €125 million.

* Banco BPM SpA signed a binding MOU to sell its asset management business, Aletti Gestielle SGR SpA, to Anima Holding SpA for a cash consideration of €700 million, in addition to a deferred consideration estimated at about €250 million.

* Worldpay Group plc agreed to a formal offer from U.S. rival Vantiv Inc. to take over the British payments company for around £8.0 billion. Under the terms of the merger, Worldpay shareholders will receive 55 pence in cash and 0.0672 new Vantiv shares for each share that they hold in the British payments firm.

* Euronext NV signed an agreement to continue receiving derivatives clearing services from the French unit of London Stock Exchange Group Plc unit LCH Group Holdings Ltd. for another 10 years, with the deal expected to be completed in the fourth quarter. Euronext will swap its 2.3% stake in LCH Group for an 11.1% share in its French business, LCH SA, subject to regulatory approval. Euronext had previously said it would switch to Intercontinental Exchange Inc. in the Netherlands for clearing when its LCH contract expired in 2018.

* Otkritie Financial Corp. Bank acquired 12.2% of Cyprus-based QIWI plc, which provides payment services in Russia, for $99.5 million, Kommersant reported. Otkritie Holding JSC, which controls Otkritie Financial Corp. Bank, now owns 21.05% of QIWI's class B shares and holds a 15.66% stake in the company's capital, the newspaper added.

* U.S. financial technology firm Fiserv Inc. increased its offer for U.K. payments company Monitise plc, valuing the latter at about £75 million or 3.10 pence in cash per Monitise share, representing a 34.8% premium to Monitise's closing price June 12.

In other news

* EU Budget Commissioner Guenther Oettinger said the U.K. will have to deposit payments for long-term programs to the EU until at least 2020, even after it leaves the bloc in 2019, Reuters reported, citing Germany's Bild newspaper.

* The Central Bank of the Russian Federation and the Deposit Insurance Agency invited BANK ROSSIYA unit Joint Stock Bank Sobinbank to act as an investor in JSC GENBANK, jointly owned by the authorities of Crimea and Sevastopol, which is operating in Russia-annexed Crimea. The transfer is aimed at enhancing GENBANK's financial stability, taking into account its importance to Crimea and the city of Sevastopol, the central bank said.

* The European Court of Justice has admitted a complaint by a group of shareholders who represented around 6% of the troubled Banco Popular Español SA before it was rescued by Banco Santander SA in June, Expansión reported.

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