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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
FINANCIALS
A week of broadly good earnings (12 of 16 financials beat) which have dominated the newsflow.
- Earnings – obviously a big week with 7 major banks, 1 card company (so 8 lenders) and 8 other financials reporting. A rough breakdown as follows:
- Revenues – 7 of 8 lenders hit/beat expectations. Average beat: 2%.
- Loan losses – 5 of 8 beat on loan. Average beat: 36%.
- Non-performers – only COF missed here with most broadly flat or marginally better. US cards a stress point.
- Capital levels – CET1 ratios were more mixed with 4 beats and and 4 misses.
- Pre-tax profit – 6 beats (NWG leading) with COF a big miss and DBK a more marginal miss.
- Outside of results, only three events of any note:
- Unicredit & Russia: the bank (UCGIM: Baa1/BBB/BBB) got guidance from the ECB, withdrawing part of its lawsuit. Raiffeisen (RBIAV: A1) is, perhaps, the most affected European bank.
- Finecobank (FINBAN: BBB) was rumoured to be being bought by Zurich – who denied it. The equity did a sharp 10% roundtrip. This does at least highlight the M&A theme and the market’s keenness to buy into it.
- Revolut (private company, no issued debt) also received a limited banking licence in the UK, another direct competitor there.
- Price action saw banks tighten 1.2bp but with Deutsche (disappointing earnings) and a range of CEE banks all selling off. Lloyds tightened following solid results, too. Insurers were a marginal 0.5bp tighter without particular pattern. Chubb was 1.4bp wider even after consensus-beating results.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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