All articles by Douglas Blakey
Douglas Blakey
The top 10 banking trends for 2010
After two years of economic turmoil, the banking industry in the US and beyond will get back to the basics of its business, engaging in more long-term planning and rebuilding and less panic-driven firefighting, according to a report Top 10 Banking Trends for 2010 from consultancy Aite In a report from Aite Group, Top 10 Banking Trends for 2010, the consultants analysts set out the major issues that they expect will shape the banking industry in 2010, in the US and beyond.
Metro Bank to open first UK branches
Metro Bank is set to open its first branches in the UK by April, with plans to open another two branches later this year and a further eight in 2011, all located in the London area. Metro has reportedly raised around £75 million of capital from institutional investors but has had to delay its launch pending approval of its banking licence application from UK regulator the Financial Services Agency.
Bendigo and Adelaide launches PlanBig social site
Bendigo and Adelaide Bank has rolled out an online social community site that allows users with a project plan to connect with other people for support, resources and expertise Bendigo, Australias seventh biggest retail bank by deposits, said its PlanBig microsite, http:www.planbig.com, had been designed to capitalise on the strengths of social networking to help create partnerships in the community. PlanBig works in association with networking websites Facebook and Twitter, allowing visitors and users to vote and support different plans by signing up for progress updates
Clydesdale inks cricket sponsorship deal
National Australia Banks Scotland-based subsidiary, Clydesdale Bank, is to sponsor the UKs 40 over cricket competition in a three year deal agreed with the the England and Wales Cricket Board (ECB). The Clydesdale Bank 40 is set to become a regular weekend fixture throughout the UK summer and will be one of three competitions making up the 2010 UK cricket domestic season
Credit Agricole, Intesa agree shares, branches deal
Credit Agricole, Frances largest retail bank, is to buy between 150 and 200 branches in Italy from Intesa SanPaolo for an undisclosed price, bringing its total Italian branch network to more than 900 outlets. The French lender has also agreed to reduce its shareholding in Intesa to below 5 percent by the end of the year from its current 6 percent stake and to less than 2 percent by July 2011.
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BBVA completes Guaranty rebrand in the US
Spains second-largest bank by assets BBVA has completed the integration of US subsidiary Guaranty into its own US network, and rebranded under the BBVA Compass moniker the 105 Texan and 59 Californian branches acquired as part of the deal last year. In snapping up Guaranty, BBVA signed a purchase agreement with the Federal Deposit Insurance Corporation (FDIC), in terms of which BBVA acquired $12 billion of assets, assumed $11.5 billion of deposits and entered into a loss-sharing agreement with the FDIC covering all of the acquired loans.
Barclays’ retail profits plunge 43 percent
Barclays has posted pre-tax profits for fiscal 2009 of £11.6 billion ($18.1 billion), up 92 percent compared with a year ago, boosted by a one-off gain of £5.6 billion from the sale of asset management subsidiary Barclays Global Investors to BlackRock. But pre-tax profits at BarclaysGlobal Retail and Commercial Banking (GRCB) unit fell sharply, down by 42.7 percent from £4.4 billion in 2008 to £2.5 billion. The fall in GRCB earnings was most marked within the banks UK retail unit: a 55 percent fall in pre-tax profits to £612 million in 2009 from £1.37 billion in the previous year.
Mexico to regulate bank fees
Mexicos lower house of Congress has approved legislation giving the countrys central bank the power to establish the interest rates banks pay on deposits and charge on loans, banning some fees altogether, and requiring lenders to offer a basic credit card with a credit limit of no more than MXP11,500 ($892). The latest legislation follows the central banks proposal last year to ban several types of commission fees, with a view to promoting competition by giving banks a greater incentive to generate revenue from lending rather than depending on commission and fee income
Akbank posts 53 percent rise in annual profits
Akbank has reported a 53 percent increase in full-year net profits for fiscal 2009 to TRY2.72 billion ($1.79 billion) The Turkish-based lender, in which Citigroup has a 20 percent stake, grew net interest income by 32 percent to TRY4.59 billion while fees and commission income increased by 16 percent to TRY1.32 billion.
Lending losses slow but tough year in store
While 2009 full-year results for the major US banks show signs losses on retail lending may be starting to moderate, the sector faces a challenging 2010 with low economic growth and high unemployment keeping customers under pressure This years US banking full-year 2009 results are notable for a number of reasons but two stand out: retail banking units continue to haemorrhage money, especially in the credit cards sector; and a high level of credit costs and reduced demand for retail lending due to the economic environment.