All articles by RBI editorial
RBI editorial
Intesa gets to add Ukraine to its franchise
Intesa Sanpaolo has acquired Ukraines Pravex-Bank for 504 million, a month after main rival UniCredit completed a deal to acquire Ukraines Ukrsotsbank Intesas Ukrainian purchase follows the release of a new business plan designed to grow the proportion of its profit generated in Central and Eastern Europe Less than a month after announcing it was actively looking for growth opportunities in the Eastern and Southern European markets, particularly in Ukraine and Turkey, Intesa Sanpaolo, Italys second-largest bank by market capitalisation, has agreed to buy 100 percent of Ukraines JSC Pravex-Bank (Pravex) for 504 million ($747 million) plus an adjustment based on the Ukrainian banks net book value.
French banks form m-payments group
The European Association for Mobile Payment (AEPM), made up of BNP Paribas, Crdit Agricole-LCL, Crdit Mutuel-CIC, Socit Gnrale, La Banque Postale, le Group Caisse dEpargne and le Groupe Banque Populaire as well as Bouygues Tlcom, Orange, SFR and NRJ Mobile, was launched following a successful trial in Caen and Strasbourg.
Morgan Stanley begins gathering deposits
Morgan Stanley has said it has begun new deposit-gathering initiatives following its conversion into a bank holding company in September. The bank said it would use its 8,500 financial advisers and 500 retail offices to build up deposits, stating it had already raised $3 billion in certificates of deposit over the past four weeks The bank plans to launch new savings and global currency accounts in 2009 in addition to existing services offered through its brokerage arm, adding that it had $36 billion in pre-existing deposits as of 31 August 2008.
The branch is back!
Despite the rise of electronic self-service channels, branches remain at the heart of the vast majority of the retail banking industry but their format and focus is changing, from consumer finance shops to megabranches A report from VRL KnowledgeBank looks at key developments in branch-based banking Today, the branch is usually supplemented by other types of delivery channel; however, it has yet to be supplanted as the most effective channel through which to create and cultivate profitable relationships
The first North American bank
Despite the worsening credit conditions in the US, Canadas TD Bank Financial Group remains gung-ho about its US retail banking opportunities following the $8.5 billion acquisition of Commerce Bank last October TD Commerce, as the new US unit is called, is still aiming to be America’s Most Convenient Bank Six months after paying $8.5 billion for the retail-savvy Commerce Bank franchise in the US (see RBI 580), Toronto-Dominion Bank CEO Ed Clark has unveiled his consolidated North American retail banking platform, hinting at an aggressive strategy that will leverage the new US division, TD Commerce, to expand the banks traditional power in insurance and wealth management to a US market in the teeth of a savage recession.
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Crédit Agricole broadens relationship with Japan’s Resona
France’s Crdit Agricole has strengthened its business alliance with Japans fourth largest banking group, Resona Since 2002, the two have built what they describe as a successful relationship in the areas of asset management and investment trusts, and they are now looking to expand into life insurance and investment banking In a statement, Crdit Agricole added: As a part of the new collaboration to further develop and continue both parties alliance, we shall explore opportunities to enhance Crdit Agricoles involvement as a Resona Holdings shareholder
Santander bolsters consumer finance unit with RBS deal
Mere days after striking a 1 billion ($1.55 billion) asset swap deal with GE Money, which added 9 billion in consumer finance volume to its book (see RBI 589), Santander has struck a similar deal with Royal Bank of Scotland (RBS), which may add a further 2.2 billion in European consumer finance assets The Spanish group has said its Santander Consumer Finance (SCF) unit has agreed in principle to acquire the European consumer finance business of RBS, a unit with 861 employees serving 2.3 million customers in Germany, the Netherlands, Belgium and Austria The division offers instalment loans both directly and via partners as well as credit card and consumer finance operations through a number of retail chains.
And our supporters are…
This years RBI banking industry awards were judged by seven in-house journalists and editors at VRL KnowledgeBank as well as three external judges (see below) The awards ceremony itself was also supported by two sponsors, KANA and Wrightson Woods
ICICI says India’s retail insurance growing
Indias ICICI is investing heavily in its insurance business as it looks to boost its market share in Indias fast-developing life and general insurance markets. Over the past two years, ICICI Life ICICIs insurance joint venture with UK insurer Prudential has grown the number of its advisers from 57,000 to 243,000 and the number of its branches sevenfold to 735. ICICI Life recorded annual premium equivalent growth of 44.7 percent in the first half of fiscal year 2008, with new business profit up to INR4.32 billion ($110 million) from INR3.47 billion in the first half of fiscal year 2007.
GE shocks with talk of possible sale
Global consumer lending giant GE Money is considering selling part of its private-label card portfolio in a bid to shore up its financial position amid an uncertain, but increasingly gloomy, economic outlook for the US in 2008. On 11 December, General Electric, the parent company of GE Money, hosted a presentation on its outlook for 2008, saying that it may sell or partner with other companies to combine costs for its private-label credit card operations. I think we could partner or exit in private-label credit cards, GE CEO Jeff Immelt commented during the presentation.