Vijaya Bank sees over 25% growth
by Richard Kilner
Story link: Vijaya Bank sees over 25% growth
Today Prakash P Mallya, chairman and managing director of Vijaya Bank, revealed that the bank had achieved growth of over 25%, surpassing its targets for the year.
In line with the first estimates, it recorded Rs 78,300 crore worth of business in the last financial year, beating its target of Rs 76,000 crore by 2,300.
At the […]
Northern Rock posts £167.6m loss and pays ex-chairman £760k
by Gill Montia
Story link: Northern Rock posts £167.6m loss and pays ex-chairman £760k
Northern Rock has reported a loss of £167.6 million for 2007, compared with a profit of £627 million in 2006.
Exceptional costs in connection with a strategic review and writedowns on mortgages and unsecured loans both contributed to the poor result.
Ron Sandler, the bank’s new chairman, has warned that the business is unlikely to break even […]
Friends Provident see falling profits but poised to reject Flowers
by Richard Kilner
Story link: Friends Provident see falling profits but poised to reject Flowers
JC Flowers, a US private equity firm, has put forward a second tentative bid for Friends Provident, thought to value the shares at 150p each.
Its earlier bid, made in January, put a price tag of 175p per share.
The new offer values the firm as a whole at £3.5bn, and prompted an emergency board meeting to […]
Shinginko Tokyo bailed out with ¥40bn
by Richard Kilner
Story link: Shinginko Tokyo bailed out with ¥40bn
Last week ¥40bn was pledged by the Tokyo Metropolitan Assembly to the Shinginko Tokyo, which is currently running at a loss.
The Shinginko Tokyo was set up almost three years ago, in April 2005, with ¥100bn of local government investment behind it.
It was the first bank to be established by local government, and was launched by […]
FSA seeks staff with market-based experience
by Gill Montia
Story link: FSA seeks staff with market-based experience
The Financial Services Authority (FSA) wants to increase its budget by around £15 million this year, to allow it to raise staff numbers.
The Authority is looking for some 100 new appointments, following its admissions of failure over the Northern Rock crisis.
It is understood that the internal audit into the collapse of the mortgage bank highlighted […]
CBI predicts 10,000 financial sector job losses
by Gill Montia
Story link: CBI predicts 10,000 financial sector job losses
The Confederation of British Industry (CBI) is predicting that over 10,000 jobs could be lost in the UK financial sector in the three months from the beginning of March.
Those most likely to be made redundant include securities traders and bankers based in the City.
In its latest Financial Services Survey, the Confederation has revealed that the […]
Britons save more as consumer confidence wanes
by Gill Montia
Story link: Britons save more as consumer confidence wanes
Britons have been saving more since the end of last year, prompting fears that a downturn in consumer spending will cause a slowdown in the economy.
Official figures show that growth in consumer spending fell to a two-year low of 0.1% in the fourth-quarter of 2007.
The level of growth was around half that forecast and […]
Slump in Asian IPOs hits bank revenues
by Dave Nixon
Story link: Slump in Asian IPOs hits bank revenues
Investment banks have suffered a bad start to the year in Asia after their most profitable year in the region in 2007.
Revenues from equity capital markets have fallen harshly as fewer companies have braved unstable market conditions to go public.
The region has been a harsh market for banks after a hefty number of companies […]
Pressure rises on Morgan Stanley board
by Dave Nixon
Story link: Pressure rises on Morgan Stanley board
Morgan Stanley’s board has come under renewed pressure to take accountability for the group’s latest lapses in risk control after two shareholder advisory firms called for a vote against several directors at next month’s annual meeting.
Nevertheless, both Glass Lewis and Proxy Governance, which advise investors on how to vote at company meetings, backed John Mack, […]
Citigroup appoints head of US consumer business
by Gill Montia
Story link: Citigroup appoints head of US consumer business
Citigroup has appointed Terri Dial as head of its US consumer business.
Ms Dial, who is currently executive director UK Retail Banking at Lloyds TSB, will replace Steven Freiberg.
In her new role as head of consumer strategy at the world’s largest bank, the 58-year-old Californian is charged with increasing profit in US retail banking and consumer […]
Australians banks well placed, says RBA governor
by Richard Kilner
Story link: Australians banks well placed, says RBA governor
Although Australian banks are well placed to handle the worldwide financial turmoil the nation will see a rise in mortgage defaults, according to Glenn Stevens, governor of the Reserve Bank of Australia.
The governor’s comments, made yesterday, also included his surprise that the credit crunch took as long as it did to manifest itself, given the […]
Profits up by more than 100% for CITIC bank
by Richard Kilner
Story link: Profits up by more than 100% for CITIC bank
Soaring income from fees and interest has led to China CITIC Bank’s profits more than doubling, the firm revealed in a statement to the Shanghai Stock Exchange.
Net profit hit 8.29bn yuan, having been just 3.73bn yuan the previous year.
Earnings per share were also up, from 0.12 to 0.23 yuan.
Operating revenue soared by 56.1% to hit […]
Cost of borrowing over 6%
by Richard Kilner
Story link: Cost of borrowing over 6%
Thursday saw the cost of borrowing between lenders pass the 6% mark, the first time it has done so since late 2007.
The alarming rise is being attributed to the persisting tightness of the credit markets, which shows little sign of rescinding.
In an effort to ease the difficult credit conditions the Bank of England has been […]
FSA powers to include “plea bargaining” for whistle-blowers
by Gill Montia
Story link: FSA powers to include “plea bargaining” for whistle-blowers
The Chancellor of the Exchequer, Alistair Darling, is considering extending the powers of the Financial Services Authority to allow it to plea bargain with City whistle-blowers.
The move comes days after market rumours wiped 20% of HBOS shares in the space of one hour.
The incident led to speculation that the rumours emanated from traders manipulating the […]
BoE auction oversubscribed by £24.4bn
by Gill Montia
Story link: BoE auction oversubscribed by £24.4bn
The Bank of England’s weekly auction of funds was oversubscribed again this week by bank’s struggling with the lack of liquidity in the money markets.
Following last Friday’s meeting between Mervyn King, the governor of the Bank of England, and the heads of leading UK banks, the central bank agreed to supply an extra £5 billion […]
Gulf banks performing well
by Richard Kilner
Story link: Gulf banks performing well
A report issued on Wednesday by Standard & Poor’s Ratings Services reveals that Gulf banks continue to defy global financial turmoil with strong performances.
Mohamed Damak, a credit analyst with the firm, explained that the Gulf banks were doing well because of their limited exposure to subprime mortgages and a healthy domestic market.
This positive situation means […]
Australia in good shape to deal with global turmoil, says central bank chief
by Richard Kilner
Story link: Australia in good shape to deal with global turmoil, says central bank chief
Governor Glenn Stevens, the chief of Australia’s central bank, has described the global financial turmoil as unsettling.
The comment was made in an address to a financial markets conference, and followed up by a confident addition that he believed the Australian system was in a good shape and resilient enough to withstand the difficulties.
However, the governor […]
New Islamic bank will be formed in 2008
by Richard Kilner
Story link: New Islamic bank will be formed in 2008
Shaikh Saleh Kamel, chairman of Al Baraka Banking Group (ABG), has stated that by the fourth quarter of 2008 there will be a new Islamic bank on the scene complete with a market cap of $321bn.
Kamel, who not only chairs the world’s largest Islamic banking group but is also a top flight Saudi businessman, made […]
RBA to protect Australian bank deposits
by Richard Kilner
Story link: RBA to protect Australian bank deposits
The Reserve Bank of Australia is beginning to formulate a means to insure deposits to the tune of $20,000, to protect consumers should a bank go bust.
The move comes as Australian regulators seek to prevent a run on a bank, as seen in the case of British firm Northern Rock.
Each $20,000 guarantee would cover a […]
EU Commission investigates Visa Europe charges
by Gill Montia
Story link: EU Commission investigates Visa Europe charges
The European Commission has announced that it will be making a formal investigation into the handling charges made by Visa Europe.
The anti-trust inquiry will look into the fees being charged to card holders for purchases made abroad.
The move follows a warning to Visa’s rival, MasterCard, late last year when the Competition Commissioner gave MasterCard six […]
