Credit Suisse selling China JV stake; Visa nears deal to buy Brazil's Pismo

TOP NEWS IN GLOBAL FINANCIALS

– Credit Suisse Group AG has put its China securities brokerage joint venture up for sale amid its takeover by Swiss rival UBS Group AG, sources told Reuters. Credit Suisse, which holds a 51% stake in the loss-making securities venture, signed a deal to buy out local partner Founder Securities in September last year, but the transaction has yet to obtain regulatory approval, according to the report. The banks declined to comment.

– Visa Inc. is close to sealing a deal for the acquisition of Brazilian financial technology firm Pismo, Bloomberg News reported, citing people familiar with the matter. The company, which is in advanced discussions with the São Paulo-based payments provider, may announce an agreement that could be valued at $1 billion this month, the news outlet reported, noting the talks could still fall through.

➤ US banks' efficiency ratio hits 10-year low as noninterest income spikes

US banks posted an aggregate efficiency ratio of 52.83% in the first quarter, down from 54.87% in the fourth quarter of 2022 and 61.62% in the year-ago period, according to S&P Global Market Intelligence data.

➤ M&A drives some major US lenders' commercial real estate balances higher

Commercial real estate (CRE) loans at US banks rose to $2.436 trillion as of March 31, up 0.54% from $2.423 trillion at the end of 2022. On a year-over-year basis, CRE loans were up 10.51%.

➤ Europe's banks brace for more bad loans

In a sample of 21 large European banks, 17 are expected to have higher nonperforming asset (NPA) ratios year over year in 2023, according to analyst consensus estimates compiled by Market Intelligence.

READ MORE about the liquidity crunch and the fallout for the financial sector in our new Issue in Focus.

AMERICAS

– Global investment banks including Morgan Stanley, JPMorgan Chase & Co. and Goldman Sachs Group Inc. are moving to distance themselves from Odey Asset Management LLP amid new allegations of sexual misconduct by its founder, Crispin Odey, news outlets including Bloomberg News and The Wall Street Journal reported, citing unnamed sources. Morgan Stanley is reportedly starting to cut its prime brokerage dealings with the London-based hedge fund, while JPMorgan and Goldman Sachs are said to be reviewing their ties with the company. The news came after the Financial Times reported that 13 women have accused Odey of "harassment, abuse and fostering a toxic workplace" over a 25-year period.

The UK Financial Conduct Authority, which is in the middle of a two-year probe into Odey Asset Management, may widen its investigation to consider the latest accusations, the FT wrote. Odey told the FT the allegations were "rubbish." Representatives for Odey Asset Management, Morgan Stanley, JPMorgan and Goldman declined to comment to Bloomberg, while a spokesperson for the FCA declined to comment specifically on Odey.

– US bank Citigroup Inc. has dismantled its global team that gives commentary and analysis on foreign exchange markets, Bloomberg reported, citing people familiar with the matter. The Wall Street bank also dismantled its Latin America corporate bond trading team amid tight liquidity and a lackluster market, according to the report.

Click here for more of the day's essential bank and financial services news in the US and Canada.

EUROPE

– London-listed payments provider Network International Holdings PLC said it has agreed to a roughly £2.2 billion cash offer from Canada's Brookfield Asset Management Ltd.'s 400-pence-per-share offer represents a premium of about 64% to Network International's closing price of 243.6 pence per share on April 12, the last business day before the start of the offer period.

– UK high-street banks must "up their game" in passing on the benefits of higher interest rates to customers, the parliament's Treasury Select Committee said. Its inquiry found that the big four banks — Barclays PLC, HSBC Holdings PLC, Lloyds Banking Group PLC and NatWest Group PLC — have increased their easy access savings rates to between 0.7% and 1.35% as of June 8 from between 0.5% and 0.65% in February, against the Bank of England's interest rate, which currently stands at 4.5%.

Click here for more of the day's essential financial news in Europe.

MIDDLE EAST & AFRICA

– Angola President Joao Lourenco appointed central bank governor José de Lima Massano to replace Manuel Nunes Junior as minister of state for economic coordination, Bloomberg reported, citing an emailed statement. Lourenco dismissed Nunes Junior following deadly protests that stemmed from the reduction of fuel subsidies, the report said.

– The International Monetary Fund said Lebanon needs urgent economic reforms to address the "severe and deepening crisis" in the nation's economy, Reuters reported, citing IMF spokesperson Julie Kozack.

ASIA-PACIFIC

– The Bangko Sentral ng Pilipinas will cut reserve requirement ratios for banks and other financial institutions by up to 250 basis points starting June 30 to avoid market volatility when alternative compliance methods for the requirements end. The Philippine central bank said the move is meant to ensure stable market conditions as it shifts to more active liquidity management, though it emphasized the cuts do not signal a change in monetary policy.

– Commonwealth Bank of Australia will now delay or deny certain customer payments to cryptocurrency exchanges for up to 24 hours and cap monthly payments to such platforms at A$10,000 to curb scam risks, the bank said in a release. The measures aim to curb cryptocurrency fraud, according to James Roberts, the bank's general manager of group fraud management services.

Click here for more of the day's essential financial news in Asia-Pacific.

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