Sector Spotlight: Global Financials is a weekly summary of exclusive banking, financial services and insurance industry news and analysis from S&P Global Market Intelligence.
US and Canada
Loan and deposit betas stabilize as rate cycle turns over
The sensitivity of funding costs and asset yields to underlying rates converged in the third quarter as banks look for a bottom in net interest margins.
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US bank M&A stays hot in Illinois, slows in Texas in 2023
In 2023, eight out of 18 states with at least three bank M&A targets recorded declines in banks targeted for acquisitions on a year-over-year basis, while seven states logged increases compared with the previous year.
Bank stock rally leaves credit debate unresolved
Bank stocks rebounded to pre-Silicon Valley levels after a surge at the end of 2023. Credit questions remain an overhang.
Lending sluggish, deposits holding steady as US banks start reporting earnings
Loans barely grew at domestic US banks in the 2023 fourth quarter, according to weekly Fed data, but deposit flows improved from preceding periods.
Banks battle earnings pressures as liquidity remains king
Even with interest rates likely near their peak, bank net interest margins have not quite bottomed yet.
Piper Sandler finishes 2023 as top underwriter for bank common equity offerings
Piper Sandler & Co. ended 2023 as the top underwriter for common equity offerings in the US bank and thrift industry, passing Barclays Capital Inc., which led underwriters through the third quarter.
Piper Sandler tops bank M&A financial adviser rankings for 2023
Piper Sandler & Co. led financial advisers on US bank M&A deals in 2023 based on both deal value and deal count.
Fintech companies 'cautiously optimistic' about IPOs after 2-year doldrums
Few fintech companies went public in 2022 and 2023. The clock is ticking for fintechs to provide their investors with exit options, and the recent stock rally is making an IPO tempting again.
Investors look past dismal projections for Q4'23 bank earnings
Consensus forecasts predict broad declines in financial performance at the big US banks for the period. Investors appear to be anticipating brighter times ahead.
Europe, the Middle East and Africa
Barclays exhibits highest upside potential among European bank stocks
The UK lender, which is undergoing a restructuring following a year of weak share price performance, has an implied upside to price target of 35.1%.
Profits at Czech, Hungarian, Polish banks set to drop in 2024, 2025
Listed Czech, Hungarian and Polish banks enjoyed strong profits in 2023 but are forecast to report lower return on equity in 2024 and 2025, S&P Capital IQ consensus estimates show.
Nova Ljubljanska Banka shows biggest share price upside among CEE, SEE banks
The Slovenian lender has an implied upside to price target of about 36%, compared with a median of 4.4% for Central and Southeast Europe's largest banks, S&P Global Market Intelligence data shows.
Asia-Pacific
Japan's monetary policy change likely to favor major banks more
Japan's biggest banks will likely gain more from a possible end to negative interest rates in the country in 2024 as they have greater flexibility to pass higher rates to their customers.
Pakistani banks log best Q4 stock returns in Asia-Pacific amid record rally
Pakistani banks led their Asia-Pacific peers in posting some of the highest stock returns in the three months ended Dec. 31, 2023, after a stock rally on the Pakistan Stock Exchange (PSX) pushed the local benchmark index to record highs.
Indian banks improve market cap in Q4 as investors chase world's fastest growth
Indian banks racked up gains in their market capitalization for the quarter ended Dec. 31, 2023, while Japanese megabanks saw their market caps decline even as the overall market experienced high investor interest last year.
Global Insurance
Tesla eyes incentives to move Calif. insurance customers out of fronting carrier
Newly obtained documents provide details on how Tesla Inc.'s insurance managing general agency plans to migrate customers into an insurance company owned by the electric vehicle manufacturer.
US life insurance 2024 outlook: Rising interest rates to boost investment income
In 2024, the life insurance industry will also have to deal with developments around the US Labor Department's proposed fiduciary rule.
'Most US health insurers expected to report YOY revenue, EPS growth for Q4 2023
Seven of the nine largest publicly traded US health insurers are expected to book higher earnings per share for the 2023 fourth quarter on a year-over-year basis. The earnings season for managed care will start Jan. 12 with UnitedHealth Group Inc.
Hanover the most richly valued US underwriter stock
The Hanover Insurance Group Inc. was the most richly valued US property and casualty or life insurer, with a price-to-estimated multiple of 113.1x as of Dec. 29, 2023, according to an analysis of 41 companies by S&P Global Market Intelligence.
ASR leads European insurer market cap increases in Q4 2023
Seventeen of the top 20 insurers saw their market caps increase in the quarter, while eight companies showed double-digit percentage growth.