Berenberg warns investors should be underweight Britain’s big banks, including Barclays, Lloyds and Royal Bank of Scotland (RBS) March 15, 2016 Analysts at Berenberg have said investors should be wary of Britain’s big banks, amid expectations that mortgage profitability will fall below 10 per cent. “We think interest rates will remain at low levels and, as a result, expect mortgage margins to fall by six basis points per year,” Berenberg’s banks team said in a note [...]
Royal Bank of Scotland (RBS) is cutting nearly 500 jobs in its investment banking business March 15, 2016 Royal Bank of Scotland is getting rid of nearly 450 jobs in its investment banking business as part of a radical restructuring plan intended to cut costs and streamline the state-backed bank. RBS informed staff today that it is slashing 448 office and middle-office positions from its corporate and institutional bank in an effort to shrink [...]
Societe Generale confirms it is buying Kleinwort Benson in an effort to boost UK private banking business March 15, 2016 Societe Generale has announced that it is buying the British and Channel Islands wealth management businesses of Kleinwort Benson. SocGen, one of France's biggest banks, revealed this morning that it had signed a share purchase agreement to acquire 100 per cent of Kleinwort Benson from the Oddo Group, another French financial services company. The acquisition is still [...]
Morgan Stanley hikes risk of global recession to 30 per cent amid low growth and lack of faith in central banks March 14, 2016 Economists at Morgan Stanley are becoming increasingly worried the global economy is teetering on the brink of recession. They've placed the likelihood of the world economy falling back into recession at 30 per cent in 2016, blaming low oil prices and decreasing effects of central banks' extraordinary monetary stimulus measures to support economies. Experts at the US investment bank [...]
Cambridge & Counties bank reports fourfold increase in profit March 13, 2016 Small business lender Cambridge & Counties Bank has reported profit before tax of £10.2m, up fourfold on the £2.5m posted the year before. The bank’s loan book grew by 66 per cent to reach £416m, while deposits increased by 21 per cent to £472m. The bank, owned by the University of Cambridge’s Trinity Hall and [...]
The rise of the robots means job losses at Royal Bank of Scotland March 13, 2016 Royal Bank of Scotland is axing 550 jobs and replacing them with so-called robo-advisers, in the company's latest move to cut costs. The axe is set to fall on RBS's investment advice division as well as its protection advice team, with the bank blaming falling demand for face-to-face services for the job losses. Robo-advice, popularised [...]
Interim Financial Conduct Authority (FCA) chief executive Tracey McDermott says she is worried British banks will “stop caring” and “begin to turn a blind eye to bad behaviour” March 13, 2016 The interim boss of the City watchdog has warned that it would be "very, very easy" for Britain's biggest banks to stop caring about standards of conduct and behaviour. "It would be very, very easy for change to be reversed," Financial Conduct Authority (FCA) acting chief executive Tracey McDermott said in an interview with the Sunday Times [...]
UK bank bonus rounds 2016: Boss’ bonuses hit as banks reward junior staff instead – while Citigroup awarded the best bonuses this year March 13, 2016 Looking for a job in banking? You could do a lot worse than heading to Citigroup, which awarded the biggest rise in bonuses this year, according to new research. In fact, Citi was the only bank to increase bonuses for mid-ranking managers, according to salary benchmarking site Emolument. The bank increased its VPs’ bonuses four per [...]
EU referendum: Housebuilders, mid-caps, banks and retail will be the sectors worst-hit by a Brexit, says UBS March 11, 2016 The Brexit debate continues apace – and now UBS Wealth Management has waded in on the argument, pointing out some of the sectors most at risk if the UK votes in favour of leaving the European Union. The good news is fears around Brexit have already been priced into the market, said Caroline Simmons, deputy [...]
Hacker’s typo foiled a billion dollar bank heist involving the Bangladesh central bank and the New York Fed March 11, 2016 A spelling mistake in an online bank transfer helped halt a nearly $1bn heist last month, sparing the Bangladesh central bank and the New York Fed from an embarrassing episode. But the unknown cyber criminals still managed to get away with a hefty $80m, meaning it was still one of the largest bank thefts in [...]