Busted Deals Have Cost Banks Over US$300 million

Busted Deals Have Cost Banks Over US$300 million

In the world of mergers and acquisitions, 2015 was a record breaking year. However 2016 is proving to be a year of broken deals. More than $395.4 billion in US mergers, including, most recently, Staples’s combination with Office Depot, have fallen apart in 2016, according to data provider Dealogic, felled by exacting regulators, rocky markets or reluctant targets .

“More than $395.4 billion in US mergers, including, most recently, Staples’s combination with Office Depot, have fallen apart in 2016.”

~ Dealogic

Three of the largest collapsed deals this year – Pfizer’s takeover of Allergan, Halliburton’s purchase of Baker Hughes and Staples’ merger with Office Depot – will cost banks more than $300 million in advisory fees, according to a review of regulatory filings. That does not include potentially large fees banks aren’t legally required to disclose.

Related Reports: Wall Street Journal, Financial News

 

About Dealogic

Uncertain markets, continued challenging trading conditions, tighter regulation and increased competition have placed greater pressure on banks to operate more efficient businesses with fewer resources for optimal performance.

Supporting the key businesses within an Investment Bank, the Dealogic Platform provides a consistent management framework across Equity Capital Markets, Fixed Income, Investment Banking and Sales, Trading & Research. Connecting professionals between each core unit, the Platform helps Investment Banking professionals better understand their clients so they can make better decisions, allocate resources and compete more effectively to optimize the flow of capital around the world.

Visit: Dealogic


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Brokerage CLSA Sees China Bad Loan with $1 Trillion of Losses

Brokerage CLSA Sees China Bad Loan with $1 Trillion of Losses

 According to an assessment by brokerage CLSA Ltd, Chinese banks’ bad loans are at least nine times bigger than official numbers indicate, which points to potential losses of more than $1 trillion.

“ The IMF said last month that the nation may have $1.3 trillion of risky loans, with potential losses equivalent to 7 percent of gross domestic product.”

~ Bloomberg

Potential losses could range from 6.9 trillion yuan ($1.1 trillion) to 9.1 trillion yuan, according to a report by brokerage. The estimates are based on public data on listed companies’ debt-servicing abilities and make assumptions about potential recovery rates for bad loans. The IMF said last month that the nation may have $1.3 trillion of risky loans, with potential losses equivalent to 7 percent of gross domestic product.

Related Reports: Bloomberg, The Economist

 

About CLSA Brokerage

CLSA is Asia’s leading and longest-running independent brokerage and investment group. The company provides equity broking and execution services, corporate finance and asset management services to global corporate and institutional clients.

Renowned for service excellence, product innovation and award-winning market intelligence, CLSA has been an unconflicted provider of research, sales and trading since 1986. CLSA has built its reputation on its unrivalled equity research and economic analysis, which is consistently ranked the best in Asia. With exchange memberships in every developed market in Asia and the USA, together with a dedicated team of experienced sales traders, CLSA is committed to delivering the best execution. 

Visit: CLSA Brokerage


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Barclays UK Brings back the 100% Mortgage

Barclays UK Brings back the 100% Mortgage

Barclays has brought back the 100% mortgage- the first major bank to do so ever since the last financial crisis. First time buyers can now get a three year fixed rate deal at 2.99% per annum without putting up their own cash. Previously buyers needed to give the bank at least a 5% cash deposit based on the purchase price.

Barclays has brought back the 100% mortgage- the first major  bank to do so ever since the last financial crisis.”

~ The Guardian

Barclays has revamped its ‘family springboard’ mortgage, removing the need for those buying their first home or home-movers to put down a penny in advance. A ‘helper’ has to put cash equating to 10 per cent of the house purchase price into a Barclays savings account and keep it there for three years. They will then get their money back, plus any interest accrued, providing their child has kept up with the mortgage repayments.

Related Reports: CNBC, Daily Mail, Independent

 

About Barclays UK

Barclays UK is a personal and business banking franchise with true scale, built around our customers’ needs with innovation at its core. It comprises our UK retail banking operations, our UK consumer credit cards business, our UK-based wealth offering, and corporate banking for smaller businesses. With around 22 million retail customers, and almost one million business banking clients, we are a pre-eminent UK financial services provider. This division will become our UK ring-fenced bank by 2019.

Visit: Barclays




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UK Banks Recovery from Crisis is Behind European Banks

UK Banks Recovery from Crisis is Behind European Banks

UK banks are lagging behind their European rivals in recovery since the financial crisis and are not expected to close the gap for years. Analysis by the Financial Times found that annual profits at the UK’s five biggest banks were still running 63 per cent below their 2007 high in 2015, while profits at their European competitors were 34 per cent away from 2007’s levels.

“Annual profits at the UK’s five biggest banks were still running 63 per cent below their 2007 high in 2015”

~ Financial Times

The figures show the toll the financial crisis has taken on UK banking industry which has been forced to shrink and restructure in the aftermath of the global financial crisis. All of the so-called big five UK banks — HSBC, Barclays, Lloyds, RBS, and Santander — had 2015 profits that were far lower than in 2007

Related Reports: Financial Times, Business Insider

 

About United Kingdom

Ridding the world of poverty is not only morally right, but would make the world a better place for everyone. In pursuit of this goal, the United Kingdom and the World Bank Group work together to develop policies on a wide range of issues, such as conflict prevention, governance, health, and education — trying to enable millions in the poorest countries to be immunized, gain access to roads and clean water, and become teachers, among other benefits. The Bank Group’s expertise, knowledge, and ability to work across sectors and countries helps further the goals of human, economic, and sustainable development around the world.

The United Kingdom became a member of the International Bank for Reconstruction and Development (IBRD) — the World Bank—in December 1945 and played a crucial role in helping found the Bretton Woods institutions (World Bank and International Monetary Fund). Today, the United Kingdom remains a major shareholder and an important and influential partner in global efforts to reduce poverty.

Visit: World Bank on United Kingdom

 


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Australian’s Westpac Clamps Down on Mortgage Lending to Foreigners

Australian’s Westpac Clamps Down on Mortgage Lending to Foreigners

Westpac is clamping down on mortgage lending to foreigners as concerns about the health of the nation’s housing market rise. Westpac Banking Corp will no longer lend to offshore customers who aren’t citizens or don hold appropriate residency visas. Commonwealth Bank of Australia, National Australia Bank Ltd. and Australia & New Zealand Banking Group Ltd have all tightened funding to overseas customers.

“ 55 percent jump in home prices across the nation’s capital cities in the past seven years ”

~ Bloomberg

The changes made by the biggest banks in the country are part of a broader scrutiny of foreign buying of Australian homes, which has helped drive a 55 percent jump in home prices across the nation’s capital cities in the past seven years

Related Reports: Bloomberg, Australian Financial Review, Reuters

 

About Westpac

Westpac Group’s portfolio of financial services brands and businesses is focused on our vision to be one of the World’s great service companies, helping our customers, communities and people to prosper and grow. From ensuring consumer customers can save and invest with confidence, to serving the financial needs of multi-national corporate, institutional and government clients, we put our customers at the centre of everything we do.

In supporting our vision, our structure is designed to accelerate the Group’s customer focused strategy by better aligning our business with key customer segments.  The structure involves 5 key divisions including:  Consumer Bank, Commercial and Business Bank, BT Financial Group, Westpac Institutional Bank and Westpac New Zealand.  Through these 5 divisions we serve over 13 million customers.

Visit: Westpac


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HSBC Faces Pay Pressure and Dividend Fears from Investors

HSBC Faces Pay Pressure and Dividend Fears from Investors

Pay is not the only thing HSBC investors will challenge. Calls for reassurance on dividends, Chinese expansion and succession planning are all set to feature in Friday’s annual meeting. Concerns about moving to Asia have been replaced by a batch of fresh worries, topped by fears about whether an 8 percent dividend yield can be sustained as the global economy stalls.

“ Concerns about moving to Asia have been replaced by another batch of fresh worries, topped by fears about whether an 8 percent dividend yield can be sustained as the global economy stalls ”

~ Reuters

Such concerns mean shareholders, reeling from a 25 percent fall in HSBC’s share price over the last year, have given a proposal to buy back shares a lukewarm reception, citing a weak revenue outlook and fears that HSBC’s management has run out of ideas to support short-term growth.

Related Reports: Reuters, The Edge

 

About HSBC

HSBC is one of the world’s largest banking and financial services organisations. With around 6,000 offices in both established and emerging markets, we aim to be where the growth is, connecting customers to opportunities, enabling businesses to thrive and economies to prosper, and, ultimately, helping people to fulfil their hopes and realise their ambitions.

We serve more than 47 million customers through our four Global Businesses: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking. Our network covers 71 countries and territories in Europe, Asia, the Middle East and Africa, North America and Latin America.

Listed on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by about 213,000 shareholders in 132 countries and territories

Visit: HSBC


The Wealth Insider is the world’s leading wealth intelligence for global wealth managers, investments managers, asset managers, high net-worth service providers and wealthy individuals.  Our global workforce seamlessly present the inside news of the most relevant news, insights, global wealth trends, innovation & digital transformation to our global audience.

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