All articles by RBI editorial
RBI editorial
Agricultural Bank of China on road to listing after $19bn in aid
Agricultural Bank of China (ABC), the only unlisted entity among Chinas Big Four state-owned banks, is to receive $19 billion from the government in a move designed to aid its market flotation, perhaps in two to three years. Sovereign wealth fund Central Huijin Investment Company will inject the cash and take a 50 percent stake, with Chinas finance ministry holding the other 50 percent. Agricultural Bank, the most-troubled of Chinas Big Four, was founded in 1979 to serve the countrys 800 million farmers and is Chinas third-largest lender by assets, with 24,000 branches.
Brazil solid, Argentina concerns persist
Banco Bradesco, Brazils largest privately-owned bank, reported third quarter net income of BRL1.910 billion ($892 million), up 3.2 percent on the same period last year. The bank, which has 3,160 branches in Brazil and 52 million customer accounts, has registered 40.8 percent growth in its loan operations, increasing its market share to around 13.1 percent
ICICI and British Airways team up for credit card
ICICI Bank and British Airways (BA) have launched the ICICI Bank British Airways American Express Credit Card, offering Indian travellers the opportunity to boost their BA Miles earnings as well as other benefits. The card will also provide complementary membership to the British Airways Executive Club, and will provide a range of other benefits including a 5 percent discount on selected airline tickets bought online using a credit card.
Société Générale launches business game on global stage
Socit Gnrale (SocGen), Frances second-largest bank by market capitalisation, has launched the latest edition of its corporate social responsibility business game, Citizen Act, aimed at students across the globe.
Santander, BBVA maintain momentum
Santander said it remained on target to generate earnings growth in 2008 of 20 percent after reporting third quarter net profit of 2.2 billion ($2.8 billion), and said it was comfortable with a core Tier 1 ratio of around 6 percent. Its earnings growth for the year-to-date of 16 percent, on a nine month net profit (excluding capital gains) of 6.94 billion compared to 6.52 billion the year earlier, means it needs to make 2.8 billion in the final quarter to hit its 20 percent target
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Growth remains on the cards
The main conclusion from the latest World Payments Report is that cards-based spending is growing rapidly around the world though cash remains very popular The report, which covers the payments industry up to the end of 2006 and has just been published by consultancy Capgemini, Royal Bank of Scotland and the European Financial Management & Marketing Association (EFMA), states: In both mature and developing countries, cards are the predominant growth driver in the non-cash payments market
Can US bail-out save Washington Mutual?
The decision added $5.4 trillion onto the government books, around 40 percent of the US gross domestic product (GDP), with the Treasury initially setting aside $200 billion for potential losses on assets, about 1.4 percent of GDP.
China’s banks post record interims
Looking at five of the major banks Agricultural Bank of China has yet to release earning figures China Merchants Bank (CMB) tops the list in terms of profit growth, with net income up 116 percent year-on-year to CNY17.1 billion ($2.5 billion)
A nasty environment to live and bank in’
Bert Bruggink, chief financial officer of Rabobank, says the outlook for the banking industry remains bleak despite his bank being one of the few big European groups to report a rise in half-year earnings
US banking market continues to sour
Problems in the mortgage market have returned to haunt US banks despite better than anticipated half-yearly results (see RBI 596). Concerns the US government might have to bail out Freddie Mac and Fannie Mae resurfaced after funding cost increases meant the government sponsored entities would find it harder to support the $12 trillion US mortgage market In turn, US retail banks will find it harder to move mortgages they originate off their balance sheets, meaning mortgage rates are likely to go up and lending set to fall further.