Government stake reduced to under 2% as bank’s profit of £1.8bn beats analyst forecasts by £200m
NatWest has reported a 36% increase in profits in the first three months of this year as the government reduced its stake in the bank to less than 2%, paving a return to fully private ownership after 17 years.
The bank reported operating profit before tax of £1.8bn, up from £1.3bn in the same period last year, beating analyst consensus forecasts by £200m.
Continue reading...Lenders expected to split into two camps: those focused on domestic customers and those with large operations in the US, China and the EU
UK banks’ earnings reports will be studied this week for signs of turmoil linked to Donald Trump’s tariff drama, with uncertainty over global growth likely to weigh on lenders with heavy exposure to China, including HSBC.
First-quarter profits only reflect the January-to-March period that preceded the US president’s “liberation day” tariff announcements on 2 April. But investors will be concerned about any hints of caution around earnings forecasts, as well as an uptick in money put aside for defaults by tariff-hit borrowers.
Continue reading...Chief executive says tensions ‘not impacting’ business as bank reports pre-tax profits of $1.6bn for second quarter
Fears of a China trade war erupting under a second Trump presidential term are overblown, according to bosses at Standard Chartered bank, as they suggested that the country’s real estate woes were “largely in the rearview mirror”.
While the London-headquartered bank makes most of its money in Asia, particularly in Hong Kong and Singapore, its chief executive, Bill Winters, played down the impact that increasingly strained relations between Washington and Beijing might have on the business.
Continue reading...Environmentalists from the Philippines urge investors to avoid LNG projects which they say threaten the Verde Island Passage
Campaigners from the Philippines have urged British banks not to fund the expansion of fossil fuel use in their country. It follows a huge oil spill that threatened a globally important marine biodiversity hotspot.
Filipino environmentalists have travelled to the UK to meet representatives from Barclays, Standard Chartered and HSBC as part of efforts to stop the expansion of liquefied natural gas (LNG) power plants and terminals in and around the Verde Island Passage, a global marine biodiversity hotspot known for its whale sharks, corals, turtles and rich fisheries, which was badly affected by the oil spill this year.
Continue reading...FTSE 100 rises and European banking shares are up after early jitters over what UBS takeover deal means for bondholders
Stocks climbed on Monday in London and New York after central bankers and politicians sought to soothe jitters triggered by the emergency rescue of Credit Suisse during the weekend.
Central banks in the UK and eurozone issued statements aimed at reassuring investors that – unlike the controversial approach taken by the Swiss authorities in the Credit Suisse deal – their jurisdictions would follow a hierarchy in which equity holders would lose out before bond holders.
Continue reading...Rebellions loom as Glass Lewis advises banks’ shareholders to reject higher base pay and excessive pensions
Barclays and Standard Chartered face the prospect of rebellions over executive pay after an influential adviser said investors should vote down pay and pensions packages for executives at the FTSE 100 banks.
Investors should defy directors and reject higher base pay for Barclays’ new chief executive and potentially “excessive” pension awards at Standard Chartered, according to Glass Lewis, which advises investors such as pension funds on how to vote at annual meetings.
Continue reading...Worsening Sino-US ties, strict Covid rules and the crackdown on dissent have dented the territory’s fabled allure as a business hub, say expats
In July 2018, Tara Joseph, president of the American Chamber of Commerce in Hong Kong, wrote an article in the best-known local English-language newspaper, the South China Morning Post, stressing to Americans the territory’s unique position as an Asian business hub.
“The US is forgetting the differences between Hong Kong and China. Let’s remind them,” she wrote. “Hong Kong continues to have a robust and hearty infrastructure of values, practices and institutions that could not contrast more starkly with those of the mainland system.”
Continue reading...Barclays and HSBC among banks booking money equivalent to 14% of annual profits in offshore entities
Leading European banks are booking around €20bn (£17bn) a year – equivalent to 14% of their total profits – in tax havens, with Barclays, HSBC and NatWest Group among those enjoying the lowest tax rates, according to a new report.
The figures emerge from an analysis, conducted by the EU Tax Observatory, of 36 big banks required to publicly report country-by-country data on their activities.
Continue reading...Campaigners say the deals revealed in new report are a breach of firms’ human rights responsibilities
Human rights groups are demanding that two of Britain’s biggest banks explain why they have lent tens of millions of pounds to a technology company building a telecoms network that is part-owned and used by the Myanmar military.
HSBC and Standard Chartered have loaned $60m (£44.5m) to Vietnamese telecom giant Viettel in the last four years, a period when the Myanmar military has been accused of committing war crimes, genocide and crimes against humanity. Viettel is a major investor in Mytel, a Myanmar mobile network that, since its launch in June 2018, has grown to become the second-biggest operator in the country with over 10 million users.
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