European banking correspondent
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Jul 31, 2015

Lloyds’ profit below hopes after new mis-selling charge

LONDON, July 31 (Reuters) – Lloyds Banking Group
set aside a further 1.4 billion pounds ($2.2 billion) to
compensate customers mis-sold loan insurance, pushing its
first-half profit below analysts’ forecasts.

The charges take Lloyds’ bill for mis-selling loan insurance
to 13.4 billion, more than any other bank, and overshadowed
plans by the bank to return excess capital to shareholders
through special dividends or share buybacks.

Jul 30, 2015

UK ruling could land banks with 33 billion pounds compensation bill: study

LONDON (Reuters) – British banks and financial firms could face a compensation bill of up to 33 billion pounds ($52 billion) for not being transparent about commission charges if a landmark legal ruling is applied broadly across the industry, a research firm has estimated.

The study from Autonomous, chaired by a former financial services minister, follows the Supreme Court decision that a loans company broke consumer protection rules by failing to tell a customer a payment protection insurance (PPI) policy they bought included a big commission charge.

Jul 30, 2015

Unexpected RBS profit boosts chance of early share sale

LONDON, July 30 (Reuters) – State-owned Royal Bank of
Scotland (RBS) posted an unexpected profit in the second
quarter, benefiting from write-backs on problem loans and
boosting its stock ahead of an impending first sale of a chunk
of the government’s shares.

An RBS share sale, following successive disposals of
government holdings in Lloyds Banking Group, would mark
another milestone in Britain’s recovery since the 2007-2009
financial crisis and could contribute billions of pounds to
state coffers.

Jul 29, 2015

Barclays to speed up cost-cuts after new mis-selling hit

LONDON, July 29 (Reuters) – Barclays’ new executive
chairman sought to stamp his mark on the bank on Wednesday by
accelerating the sale of assets and cost cutting, after the
group reported an 12 percent rise in profit and another big
charge to compensate customers.

Chairman John McFarlane, who arrived at Barclays in April
with a reputation for taking bold action, laid out plans for the
bank’s revival after ousting Chief Executive Antony Jenkins
earlier this month, saying the pace of change had been too slow.

Jul 28, 2015

Barclays boss McFarlane seen speeding asset sales, cost cuts

LONDON, July 28 (Reuters) – Barclays’ new chairman
John McFarlane is expected to speed up cost cuts and asset sales
at the British bank on Wednesday, when quarterly results will be
eclipsed by his strategic plans and the search for a new chief
executive.

McFarlane fired chief executive Antony Jenkins earlier this
month, saying Barclays’ turnaround was not happening quickly
enough, so he is expected to give more details on his strategy
alongside results for the second quarter.

Jul 28, 2015

RBS to sell $2.2 billion Citizens shares to take stake below 25 percent

LONDON (Reuters) – State-backed Royal Bank of Scotland (RBS.L: Quote, Profile, Research, Stock Buzz) intends to sell up to $2.2 billion shares in U.S. bank Citizens (CFG.N: Quote, Profile, Research, Stock Buzz), which would cut its stake in that business to less than a quarter.

RBS said on Tuesday it would sell 75 million Citizens shares in a public offer, plus an option to sell up to another 11.25 million.

Jul 28, 2015

RBS to sell $2.2 bln Citizens shares to take stake below 25 pct

LONDON, July 28 (Reuters) – State-backed Royal Bank of
Scotland intends to sell up to $2.2 billion shares in
U.S. bank Citizens, which would cut its stake in that
business to less than a quarter.

RBS said on Tuesday it would sell 75 million Citizens shares
in a public offer, plus an option to sell up to another 11.25
million.

Jul 28, 2015

Cerberus leads U.S. investors gobbling up Europe’s bank loans

LONDON, July 28 (Reuters) – Cerberus, the private equity
firm named after the mythical three-headed dog guarding the
gates of Hades, is leading a charge by U.S. investors who are
snapping up European loans at knockdown prices.

New York-based Cerberus Capital Management has
bought more than 27 billion euros ($30 billion) of European
loans in the last 2-1/2 years, acting along with rivals such as
Lone Star and Blackstone to snap up commercial and
residential debt from banks desperate to shrink or governments
running down so-called “bad banks”.

Jul 24, 2015

Lending by overseas banks to Greece fell by third in first quarter

LONDON (Reuters) – Lending by international banks to Greece fell by a third, or $22 billion (14 billion pounds), in the three months of the year as concerns about its economy and euro zone membership mounted, according to cross-border lending data released on Friday.

The Bank for International Settlements said cross-border Lending to Greek companies, banks, individuals and other entities had dropped to $45.5 billion at the end of March.

Jul 24, 2015

Lending by overseas banks to Greece fell by third in Q1

LONDON, July 24 (Reuters) – Lending by international banks
to Greece fell by a third, or $22 billion, in the three months
of the year as concerns about its economy and euro zone
membership mounted, according to cross-border lending data
released on Friday.

The Bank for International Settlements said cross-border
Lending to Greek companies, banks, individuals and other
entities had dropped to $45.5 billion at the end of March.

    • About Steve

      "Responsible for overseeing coverage of the European bank sector and direct coverage of the international UK-based banks, based in London. Have been in current role for three years, and for previous three years was UK banking reporter. Have over 15 years experience as a financial newswire journalist in London and New York."
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