trending Market Intelligence /marketintelligence/en/news-insights/trending/wfparn1XvUl1_0frg_OFsg2 content esgSubNav
In This List

Big banks post profits; LSE-Refinitiv deal; Carige to get €636M from FITD


Insight Weekly: US inflation soars; real estate faces slowdown; megadeals drive tech M&A


Commercial Banking: June 22nd Edition


Insight Weekly: Path to net-zero; US manufacturing momentum; China's lithium M&A frenzy


Commercial Banking Newsletter June Edition - 2022

Big banks post profits; LSE-Refinitiv deal; Carige to get €636M from FITD

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

France on the lead

* BNP Paribas SA's second-quarter net income rose year over year to €2.47 billion from €2.39 billion, with CFO Lars Machenil saying the group will likely hit its capital target a year ahead of schedule.

* Crédit Agricole SA's second-quarter net income group share declined on a yearly basis to €1.22 billion from €1.44 billion. Crédit Agricole Group, meanwhile, reported second-quarter net income group share of €1.81 billion, down from the year-ago €2.08 billion.

* Société Générale SA saw its second-quarter consolidated group net income fall to €1.05 billion from €1.22 billion a year ago and met its 2020 capital target ahead of schedule.

* Natixis posted a 32% year-over-year drop in restated second-quarter net income group share to €346 million. CEO François Riahi said the bank is conducting an audit of its H2O AM LLP investment fund following outflows on liquidity concerns and will alter its risk controls depending on the results. Parent Groupe BPCE's restated net income group share for the quarter fell 7.9% year over year to €956 million.

British beats

* Barclays PLC reported second-quarter attributable profit of £1.03 billion, down from £1.28 billion a year earlier. The bank declared a first-half dividend of 3.0 pence per share, up from 2.5 pence per share a year ago.

* Royal Bank of Scotland Group PLC reported second-quarter attributable profit of £1.33 billion, up from the year-ago £96 million. RBS declared dividends totaling £1.7 billion, comprising an interim dividend of 2 pence per ordinary share and a special dividend of 12 pence per ordinary share.

* Standard Chartered PLC posted first-half attributable profit of $1.48 billion, compared with the year-ago $1.56 billion, and said it plans to expand in China with options including potential joint-venture opportunities in securities business and virtual banking.

Over to greater Europe

* Credit Suisse Group AG's second-quarter attributable net income rose to CHF937 million from CHF647 million a year earlier, marking the bank's best quarterly performance since the second quarter of 2015.

* Amsterdam-based ING Groep NV's second-quarter consolidated group net result came in at €1.44 billion, up from the year-ago €1.43 billion.

* Spain's Banco Bilbao Vizcaya Argentaria SA reported second-quarter net attributable profit of €1.28 billion, up on a yearly basis from €1.25 billion. CEO Onur Genç said that although the allegations of wiretapping by the bank present a reputational risk, they do not have an impact on its business.

* Other financial firms that reported second-quarter and first-half earnings include Euronext NV, Lloyds Banking Group PLC, Liberbank SA, Erste Group Bank AG, PAO Sberbank of Russia, Yapı ve Kredi Bankası AŞ and Banca Monte dei Paschi di Siena SpA.

M&A hall

* London Stock Exchange Group PLC agreed to acquire financial data analytics platform Refinitiv in an all-share transaction for a total enterprise value of approximately $27 billion and reported total first-half unaudited profit attributable to equity holders of £246 million, unchanged from a year ago.

* Lloyds Banking Group began exclusive discussions to acquire a £3.7 billion mortgage loan book from Tesco Personal Finance PLC, or Tesco Bank, insiders told Sky News.

* Banca Monte dei Paschi di Siena will sell two tranches of nonperforming loans with an aggregate value of roughly €690 million to illimity Bank SpA.

In other news

* British banks with retail deposits of £50 billion or more will be required to publicly disclose by June 2021 whether they can shut down without drastically impacting customer deposits and the financial system.

* Italian deposit guarantee fund FITD will spend up to €636 million to help rescue Banca Carige SpA, Reuters reported, citing the fund's director general, Giuseppe Boccuzzi.

* RBS has reportedly approached Alison Brittain, CEO of hotel chain Whitbread PLC, about potentially becoming its new CEO. Brittain, however, is uninterested in the post.

Featured during the week on S&P Global Market Intelligence

Iceland's big banks face headwinds amid competition, weak economy: Arion banki, Íslandsbanki, Landsbankinn and Íbúðalánasjóður are struggling to retain profitability amid Iceland's economic difficulties and competition from pension funds, according to S&P Global Market Intelligence.

Turkish lira leads emerging market currency advances in July: The Turkish lira was the strongest-performing emerging market currency in July as seven of the 21 tracked by S&P Global Market Intelligence gained.