All articles by Douglas Blakey
Douglas Blakey
Barclays secures capital boost, at a cost
Barclays, the UKs third-largest bank by assets, has confirmed it is to raise up to £7.3 billion ($11.8 billion) of additional capital from existing and new strategic and institutional investors. In the process, the bank has avoided tapping the UK government for funds to shore up its business unlike rivals Royal Bank of Scotland, HBOS and Lloyds TSB (see RBI 600). But Barclays latest cash injection it raised £4.5 billion as recently as June comes at a cost: it will have to pay annual interest of 14 percent on some of the capital instruments and pay £300 million in fees.
Standard Chartered to introduce Islamic banking in Bahrain
Standard Chartered is to roll out its Islamic banking brand, Standard Chartered Saadiq, in Bahrain before the end of 2008. A spokesperson for the bank told RBI the launch would feature a number of retail banking products, including current and savings accounts and personal loans as well as wholesale banking products.
Australia’s banks get direct
Twenty of the top US and European banks made a combined profit of $1.2 trillion in the decade between 1998-2007, according to RBI research, underscoring just how successful the industry has been and just how different the industry will be after the credit crunch William Cain and John Hill report.The industry turmoil demolishing banking markets in the US, UK and, threateningly, across the globe comes at the end of an unprecedented period of banking growth in many markets Banks in the US and UK particularly have enjoyed extremely profitable times unsurprisingly, it is the players in these two markets that have been hit hardest by the abrupt market collapse
A catastrophe measured in trillions
The once-mighty Wachovia has been sold to Citigroup for a paltry $2.2 billion, with Citi taking on an initial $30 billion in bad debt; Fortis has been part-nationalised by three European governments with an 11.2 billion ($16 billion) capital injection; and the UK government has had to broker two desperate deals in two weeks the nationalisation and part-sale of the countys eighth-largest bank, Bradford & Bingley, and the £10 billion ($18 billion) sale of Halifax-Bank of Scotland, the countrys largest retail lender with £681 billion in assets, to rival Lloyds TSB.
HSBC stands out from the crowd
HSBCs near-unparalleled strength in the face of the tornadoes blowing through global financial markets has been re-emphasised with a swift, internally funded £750 million ($1.3 billion) recapitalisation of its UK business The move came at a time when most of its rivals in the UK and the world have been forced to turn to governments to underwrite rights issues and inject capital. An HSBC spokesman said its recapitalisation fulfilled its agreed commitment to the UK governments banking sector scheme, which gives it access to central funding, even though it has been a recent provider of liquidity in the interbank market
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Deutsche Bank in big retail banking push
Fresh from its acquisition of a 29.75 percent stake in Deutsche Postbank with an option to buy another 18 percent before 2011 and first refusal on the remaining 52.25 percent (see RBI 599) Deutsche Bank has announced additional plans for its own retail banking business in Germany, Italy and Poland to 2012.
French mull new retail banking giant
Frances fourth and fifth-largest banking groups Groupe Caisse dEpargne and Groupe Banques Populaires are considering a merger that will form the countrys second-biggest player in a move that would radically alter Frances retail banking market. The combined group would have 35.2 million retail clients (of which 16 million are active clients); 8,108 branches; 40 billion ($53.6 billion) in capital; 480 billion in savings and deposits; net banking income of 17.5 billion; and close to 100,000 staff
SocGen’s foreign legion thrives
Jean-Louis Mattei, head of international retail banking at Socit Gnrale, says the banks aggressive international expansion strategy will continue as it seeks increased market share in Central and Eastern Europe Russia and the Mediterranean Basin also present high-growth potential, writes Douglas Blakey.Socit Gnrale (SocGen), Frances third-largest bank by assets and once considered a prime candidate for a takeover in the wake of the $7.1 billion trading scandal in January (see RBI 586), is, according to its management team, solid, profitable and well-placed to look at acquisition opportunities among its weakened international rivals
Middle East, Asia-Pac groups step forward
While a number of major Asian banks have expressed caution about investing in the West in the current market turmoil, notably Industrial and Commercial Bank of China and China Construction Bank, some remain upbeat: Bank of China says it is open to the possibility of buying into US banks in the wake of the global financial crisis
Nigeria’s global bank
Angela Nwabuoku, United Bank for Africas head of products and segments, says the bank will extend its operations to 15 countries this year and 35 countries by the end of 2009 West Africas largest financial services group, Nigeria-based United Bank for Africa (UBA), continues to grow at a breathless pace, boosted by infrastructure investments, Nigerian banking reforms and an impressive international expansion strategy