Of Special Interest
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- Newslink Trends-The Global Strategic Perspective
- Juniper Research says digital wallet users to exceed 4.4 billion by 2025, as mobile drives digital payments’ revolution
- Criminals exploit COVID-19 pandemic with rise in scams targeting victims online
- Equifax says Open Banking proving pivotal to pandemic lending
- Consumer confidence in banks, credit card providers and investments remain stable as demand supercharges digital finance says Toluna research
- Mintos says Europeans are starting to embrace investing
- US banks see IT modernisation as a way to improve customer experience
- Risk mitigation in global trade depends on digitisation-Andrew Raymond, CEO, Bolero International comments
- Juniper Research new study says the volume of B2B payments facilitated by non-banks will exceed 53 billion in 2022, from a COVID-related low of 38 billion in 2020
- CMA issues fifth publication over 3 years of the service quality league table of personal and business current account providers
- Barclays says scammers take advantage of COVID-19, cashing in on nations’ uncertainty
- S&P Global report says financial market infrastructure sector's earnings likely to cool off In second half
- Global banking market capitalisation slumps by over 30% amid pandemic says Buyshares research
- Digital wallet spend in Europe & North America to increase by 40% in 2019, finds study
- Juniper forecasts mobile money transactions will exceed 200 billion by 2024
- Banks can save the world from climate change, says former UN climate chief
- Research by NatWest reveals gender divide over attitudes to saving
- Europe’s big bank problem: too much capital is trapped in the US, says Scope
- Later-Life lending market set to almost double in the next 10 years, finds report
- Barclays/Cebr report challenges nation to think differently about wealth
- Fifth of UK investors looking to debt investment, new research reveals
- Regtech will play a more important role in PSD2, says Mitek
- Banks turn to Fintech partnerships to improve customer experience, finds Fraedom
- New industry code to tackle fraud must deliver, says Which?
- New TTF report highlights loss of trust in financial services
- Arxan highlights financial app vulnerability epidemic
- SAS asks whether banks really need to choose between operations and innovation
- Which? raises alarm as almost 1,700 free ATMs become fee-charging
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
30th September 2011
NBNK only bidder to meet deadline for Lloyds branches
NBNK confirmed on Thursday that it had made a bid for the branches and assets that are being sold by Lloyds Banking Group. It made no other comment. It is thought to have been the only bidder that placed a bid by the deadline of the 28th September. Bank borrowing rates have increased significantly in recent weeks due to global concerns arising from the sovereign debt crisis and this is believed to be the reason for the other interested organisations not bidding. NBNK is thought to have bid £1.5bn (€1.7bn $2.3bn ¥179bn Y15.0bn) for the Lloyds Banking branches for sale. Earlier this year Lloyds Banking were understood to be expecting a sum over £2bn for the branches and mentioned the possibility if an IPO if the bids did not reach an adequate level. Linked to the higher borrowing costs is also the reason NBNK is said not to be interested in the additional mortgages and loans that Lloyds Banking was offering over and above that set by the European Commission requirements.
Lloyds Banking was given until the end of 2013 to sell the assets by the EU so could in theory wait until better market conditions. However waiting has a number of downsides and is unlikely to have the support of its chief shareholder - the government. Leaving the businesses to be sold in limbo is only likely to lead to further decreases in their market value and lead to the desertion of key executives and managers. There is also the risk that valuations could get worse.
It is unclear whether others who showed interest may still may a late bid, there are some hints that Lloyds is keeping the door open for a short while at least. Co-operative Financial Services was one of the others and in theory could raise the required money from the co-operative movement and other services through debt. The organisation struggles to make any profit (£2.6m net profit in the first half) and therefore its credibility in repaying debt may be in question and also its ability to manage such a large business. The third organisation to show interest in bidding was Sun Capital, a US finance house with no expertise in retail banking. NBNK and Sun Capital are known to have held independent talks with National Australia Bank with regard to acquiring / merging with NAB's UK subsidiaries - Yorkshire and Clydesdale Banks to mould a significant sixth force in retail banking. The Yorkshire Post newspaper quotes a NAB spokesman as confirming that talks had ended with Sun Capital without any deal. The newspaper also quotes Mark Joiner, NAB's executive director for finance as saying that there will be no 'fire sale' and reminds that the UK banks are profitable. It remains unclear whether there are active discussions between NAB and NBNK.
Lloyds Banking share price was standing at under 37p on Wednesday, less than half of its 52 week high with most of the fall occurring in the last three months. The option of an IPO this year would seem impossible also.