No profit for Credit Suisse in first quarter of 2008
by Richard Kilner
Story link: No profit for Credit Suisse in first quarter of 2008
Today Credit Suisse suffered another financial hit from the subprime mortgage crisis, modifying figures released last month to record a reduced profit for 2007 of 7.76bn swiss francs.
The Swiss banking giant has also stated it believes it will not record a profit in the first quarter of 2008.
In February, when the initial profits estimate was [...]
Hong Kong’s banks enjoy strong growth in profits
by Richard Kilner
Story link: Hong Kong’s banks enjoy strong growth in profits
It was revealed yesterday that the Hong Kong retail banking sector enjoyed impressive growth over the course of 2007, recording a pre-tax operating profit increase of 31.1%.
Net interets income increased by 17.4%, with non-interest income increasing by 48%, largely due to the high level of stock market activity leading to a higher level of fees [...]
Bank chief meet with BoE Governor
by Gill Montia
Story link: Bank chief meet with BoE Governor
The chief executives of HBOS, Royal Bank of Scotland, Barclays, Lloyds TSB and HSBC will gather today to discuss the latest developments in the global banking sector with the Governor of the Bank of England, Mervyn King.
Speaking this morning on BBC Radio 4’s “Today” programme, Angela Knight, chief executive of the British Bankers’ Association, explained [...]
FSA head of retail departs
by Gill Montia
Story link: FSA head of retail departs
The Financial Services Authority (FSA) has announced that Clive Briault, the managing director of its retail business division, will be leaving his post at the end of April.
Mr Briault has been deeply involved in the Northern Rock debacle, in that he headed the team that monitored the mortgage bank.
During the enquiries that followed the UK’s [...]
“Super-bankers” criticised for stalling poverty alleviation
by Gill Montia
Story link: “Super-bankers” criticised for stalling poverty alleviation
The head of the United Nations Development Programme has criticised the financial sector for creating economic crises that threaten targets aimed at reducing poverty worldwide.
When delivering a lecture in Bombay, Kemal Dervis pointed out that as with the Asian crisis of 1997 and the dot-com crisis of 2001, the current US sub-prime crisis has been [...]
FSA warns on market rumours as HBOS shares plunge
by Gill Montia
Story link: FSA warns on market rumours as HBOS shares plunge
Rumours that HBOS has liquidity problems has led to an investigation by the Financial Services Authority (FSA), which will be looking at the possibility of market abuse, after the bank’s shares fell heavily today.
It is possible that the speculation, which included suggestions that the Bank of England is arranging an emergency meeting with HBOS, emanated [...]
UAE matches Federal Reserve’s rate cut
by Richard Kilner
Story link: UAE matches Federal Reserve’s rate cut
Today the UAE Central Bank has matched the Federal Reserve in cutting its repurchase rate by 75 basis points to 2.25%.
The bank has debunked rumours that its monetary policy was subject to US influence.
A spokesman for the central bank stated that the only considerations made were for the Gulf Cooperation Council and trying to give [...]
Deutsche Bank increases investment in Hua Xia Bank
by Richard Kilner
Story link: Deutsche Bank increases investment in Hua Xia Bank
Deutsche Bank has today declared it is to increase its stake in Chinese firm Hua Xia Bank of China from 9.9% to 13.7%.
The original stake was purchased two years ago, and increasing it will cost Germany’s largest bank US$550m.
However, the proposal will require approval from the Chinese regulatory authorities.
Colin Grassie, chief executive officer of Deutsche [...]
World Bank’s $180m grant to Nigeria not yet accessed
by Richard Kilner
Story link: World Bank’s $180m grant to Nigeria not yet accessed
Nigeria has not yet accessed a $180m grant established to assist in furthering the nation’s education system, according to the World Bank.
Speaking in Abuja, Mercy Agunbiade revealed that no projects had met the requirements necessary to access the grant.
Agunbiade went on to say that should the grant not be accessed, then the money would go [...]
Temporary governor for the Bank of Japan
by Richard Kilner
Story link: Temporary governor for the Bank of Japan
The Bank of Japan will not see a permanent replacement for Toshihiko Fukui, the incumbent governor whose term of office ends today.
The successor to Fukui must be agreed upon by both government and opposition, and weeks of wrangling have led to the necessity of appointing a temporary replacement instead.
Fukui leaves the position at midnight.
The Japanese [...]
Lloyds TSB backs expansion of Islamic banking
by Gill Montia
Story link: Lloyds TSB backs expansion of Islamic banking
Lloyds TSB is convinced that the Islamic finance market, which operates under the principals of Shari’a law, will continue to grow in the UK, with demand increasing from both within and without the Muslim community.
The bank’s media relations manager, Emile Abu-Shakra, points out that although Islamic finance products “are designed with Muslims in mind and [...]
Markets cheer as Lehman Brothers post 57% drop in profit
by Gill Montia
Story link: Markets cheer as Lehman Brothers post 57% drop in profit
Lehman Brothers has reported first-quarter profit that is above market expectations, while at the same time reassuring shareholders and creditors that it has adequate capital reserves.
The bank, which has been seen as vulnerable in the current market turmoil, recorded a 57% drop in first-quarter profit, to $489 million having written down $2 billion in losses [...]
US interest rates cut by 0.75%
by Gill Montia
Story link: US interest rates cut by 0.75%
The US Federal Reserve yesterday reduced interest rates by 0.75% to 2.25%.
The move follows the dramatic rescue of Bear Stearns over last weekend and the eventual acquisition of the investment bank by rival JPMorgan Chase, for $2 a share.
While the cut in US rates has been well received by global markets, it was less than [...]
UBS head takes 90% pay cut
by Gill Montia
Story link: UBS head takes 90% pay cut
The chairman of Swiss investment bank, UBS, has had a 90% pay cut.
Marcel Ospel earned SwFr26.6 million in 2006 but his remuneration for 2007 will be around SwFr 2.5 million as a result of the $18.4 billion written down by the bank last year on mortgage-rated investments.
UBS posted a SwFr4.4 billion net loss in 2007, [...]
Northern Rock cuts 2,000 jobs
by Gill Montia
Story link: Northern Rock cuts 2,000 jobs
Northern Rock has published its restructure plans, which include reducing the bank’s workforce from 6,500 to 4,500 by 2011.
The majority of the job losses will be in Tyneside and trade union, Unite, has said it will oppose any compulsory redundancies, arguing that the cut backs should be achieved through voluntary redundancies only.
The bank also plans [...]
Inflation rises to 2.5%
by Gill Montia
Story link: Inflation rises to 2.5%
The Office for National Statistics has confirmed that inflation rose to 2.5% in February, a nine month high.
The Consumer Prices Index (CPI), the official measure of inflation, rose 0.3% during the month, up from 2.2% in January.
The ONS has pointed out that the rise was largely due to a change in the way it calculates [...]
BCHB acquires large stake in Bank of Yingkou
by Richard Kilner
Story link: BCHB acquires large stake in Bank of Yingkou
Bumiputra-Commerce Holdings Bhd (BCHB) has acquired a 19.99% stake in Bank of Yingkou Co Ltd, formerly known as Yingkou City Commercial Bank.
There are a number of other large shareholders in the bank, including Liaoning Jinding Magnesium Mine Group with 14.86% and Yingkou Qunqi Refractories Ltd with 14.15%.
BCHB’s shares were acquired through a subscription valued at [...]
Second nominee to lead Bank of Japan to be revealed
by Richard Kilner
Story link: Second nominee to lead Bank of Japan to be revealed
The Japanese government is set to unveil its new nominee for the post of Bank of Japan governor today.
With just a single day left before the incumbent governor, Toshihiko Fukui, retires and Monday seeing worldwide stock market turmoil the necessity of picking a successor continues to grow in importance.
Deputy governor Toshiro Muto was the government’s [...]
South Africa struck by stock market turmoil
by Richard Kilner
Story link: South Africa struck by stock market turmoil
Yesterday’s market turmoil hit South Africa, where the JSE financial index was down 6.3% at its lowest ebb.
The index did make something of a recovery during the afternoon, closing 3.2% down.
Stock markets across the world suffered in the wake of Bear Stearns, the Wall Street investment bank that required emergency funding.
The FTSE closed down 217 [...]
Australian banks expected to raise rates
by Richard Kilner
Story link: Australian banks expected to raise rates
Commercial banks in Australia have been given the green light by the Reserve Bank of Australia to increase lending rates independent of the RBA’s own decisions.
The RBA has raised the cash rate to 7.25%, a rise of 25 basis points.
At the present time, the central bank is seeking to lessen inflationary pressures and hold back [...]
