FTSE 100 Drops as Fears Over SVB Fallout Weigh
0844 GMT - The FTSE 100 drops 0.9% to 7673 points amid worries about the fallout from the collapse of U.S. lender Silicon Valley Bank. U.K. banks stocks including Standard Chartered, Barclays and Lloyds decline along with HSBC, which announced Monday it is buying the U.K. arm of SVB. "HSBC shareholders may have some concerns about the bank snapping up assets which have been under such a cloud of uncertainty, particularly the exposure to bonds, but HSBC says it expects a gain to arise from the acquisition," Hargreaves Lansdown analyst Susannah Streeter writes. Phoenix Group shares fall 1.2% after insurance company reported a wider 2022 pre-tax loss amid a challenging economic backdrop. Mining shares rally as metal prices rise. (renae.dyer@wsj.com)
COMPANIES NEWS:
HSBC Buys UK Arm of Silicon Valley Bank
HSBC Holdings PLC said Monday that it has purchased Silicon Valley Bank UK Ltd., the U.K. arm of the collapsed Silicon Valley Bank, for 1 pound ($1.20).
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Direct Line Swung to 2022 Pretax Loss, Sees 2023 Earnings Hit by Motor Claims Inflation
Direct Line Insurance Group PLC on Monday said it swung to a pretax loss 2022 as it was affected by high claims inflation, regulatory reforms, exceptional weather and difficult investment markets, adding it sees these headwinds hurting its 2023 performance.
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Mincon 2022 Pretax Profit Rose on Organic Revenue Growth, Price Hikes
Mincon Group PLC said Monday that 2022 pretax profit rose on strong organic growth and price increases, and said it expects significant progress in 2023.
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Nightcap 1H Pretax Loss Widened, But Says It Is Confident for 2H
Nightcap PLC said Monday that its pretax loss widened for the first half of fiscal 2023 as it posted higher revenue, boosted by Christmas trading despite the impact of rail-worker strikes.
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Ricardo Buys Aither for Up to GBP17 Mln -- Deal Digest
ACQUIRER: Ricardo PLC, an engineering, technical, environmental and strategic consultancy company.
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Global Ports Holding Nine-Month Revenue Rose as Recovery Continues
Global Ports Holding PLC said Monday that revenue rose in the first nine months of fiscal 2023 supported by a continued postpandemic recovery in the cruise market.
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Stelrad 2022 Pretax Profit Fell on Lower Sales Volume; Proposes Dividend
Stelrad Group PLC said Monday that its pretax profit fell in 2022 as sales volumes declined due to the macroeconomic environment, and that it was proposing a dividend.
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Woodbois Raises GBP3 Mln Via Discounted Share Placing
Woodbois Ltd. said Monday that it has raised 3 million pounds ($3.6 million) through a conditional share placing and that the funds will be used for general working capital.
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Springfield Properties CFO Michelle Motion Resigns
Springfield Properties PLC said Monday that Michelle Motion has resigned as chief financial officer with immediate effect.
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MTI Wireless 2022 Pretax Profit Rose; 2023 Began Well
MTI Wireless Edge Ltd. said Monday that 2022 pretax profit rose as all of its divisions saw growth, and 2023 has started well.
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Transense Technologies COO Nick Hopkins to Resign
Transense Technologies PLC said Monday that Chief Operating Officer Nick Hopkins will resign with immediate effect.
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PCI-PAL Has GBP3.2 Mln With Silicon Valley Bank; Early 2023 Met Views
PCI-PAL PLC said Monday that it has 3.2 million pounds ($3.9 million) of cash with collapsed principal banker Silicon Valley Bank across the U.S. and U.K., and that its early 2023 performance has met its expectations.
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Condor Gold Shares Rise as Nicaragua Gold Project Sale Already Receives Offers
Condor Gold PLC shares rose Monday after it said the sales process of its La India gold project in Nicaragua is entering the end of its first phase, with three formal expressions of interest and further offers expected.
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Anglo Asian Mining Identifies Copper Mineralization at Azerbaijan Mineral Deposit
Anglo Asian Mining PLC on Monday it has identified a significant copper mineralization at its Xarxar mineral deposit in Azerbaijan.
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Fonix Mobile 1H Pretax Profit Rose on Mobile Payments, Messaging; Proposes Dividend
Fonix Mobile PLC said Monday that its pretax profit rose in the first half of fiscal 2023, as revenue grew across mobile payments and messaging services.
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Tungsten West Names Neil Gawthorpe As CEO
Tungsten West PLC on Monday said it has appointed Neil Gawthorpe as chief executive officer with immediate effect, adding one of his priorities will be to secure funding to restart the Hemerdon project.
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Venture Life Has No Deposits With SVB; Says 2023 Has Started Well
Venture Life Group PLC said Monday that it has no deposits with the collapsed Silicon Valley Bank, and that its early 2023 performance has been positive.
MARKET TALK:
Direct Line's Weak Results, Lack of Guidance Suggest Earnings Uncertainty
0853 GMT - Direct Line Insurance Group's weaker-than-expected results signal uncertainty, says RBC Capital Markets in a note after the insurer posted 2022 results that missed consensus expectations. "Absence of 2023 guidance suggests to us a higher level of earnings uncertainty than before, while the implied combined ratio outlook of <96% under the new net insurance margin (NIM) target does not bode particularly well, either," says analyst Derald Goh. RBC has a sector perform rating on the stock. Shares shed 5.3% at 158.85 pence, having lost 28.2% year-to-date. (elena.vardon@wsj.com)
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SVB Bank Collapse Seen as an Outlier But Caution Needed Ahead
0813 GMT - The collapse of Silicon Valley Bank is in many ways an outlier, but that doesn't mean the banking sector is in the clear, ING analysts Padhraic Garvey and Suvi Platerink Kosonen write in a research note. So far the list of potential banks affected by the collapse remains limited and it doesn't extend to systemically important banks, but there remains a fear of contagion, the analysts say. The Federal Deposit Insurance Corporation, the U.S. Treasury and Federal Reserve's joint statement regarding SBV and Signature Bank was a clear move to calm nerves and ensure depositors don't queue outside banks, they say. "So far the system looks fine, but it needs to be treated with caution ahead, just in case," the analysts say. (pierre.bertrand@wsj.com)
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Phoenix Group's 2022 Broadly in Line With Views
0807 GMT - Phoenix Group reported its 2022 earnings with figures mainly in line with market consensus and its operating profit was better-than-expected, RBC Capital Markets' analysts say in a note. Europe's largest consolidator of life insurance and pensions reported an operating profit 10% ahead of consensus, helped by longevity, they say. Phoenix's dividend-per-share growth--a key focus among investors given the previously provided 2022 new business details--came in at 26.0 pence, in line with consensus and implies 2.5% organic growth, they added. (michael.susin@wsj.com)
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SVB Events Highlight Risks to Profitability That Banks Face, Liberum Says
0802 GMT - The events surrounding Silicon Valley Bank demonstrate that risks from tightening monetary policy and slowing economic growth are beginning to crystallize, Liberum says in a note. "Inappropriately dressed swimmers are being revealed as the tide goes out," analysts Nick Anderson and James Allen say. They note the main takeaway for banks and fintechs is the risk to profitability as net interest margins are squeezed by increasing competition for deposits. The banks' return on equity will also likely have peaked given inflationary pressures on cost bases and the turn in the credit quality cycle, they say, adding that solvency is not an issue. (elena.vardon@wsj.com)
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European Banks' Diverse Deposit Bases Have Limited Read-Across From SVB
0752 GMT - The collapse of Silicon Valley Bank has limited read-across to the European banking sector, which generally have a deposit base less concentrated on one sector, as SVB was disproportionately with tech start-up firms, Citi analysts say in a note. European banks are still seeing relatively healthy deposit flows, operate with large liquidity portfolios, and remain well capitalized, they say. Importantly, banks in Europe are still seeing system-wide deposit inflows, compared to outflows in U.S., though deposit growth is beginning to slow, especially among commercial clients, the analysts say. The Euro Stoxx Banks index, which tracks eurozone lenders, fell 3.8% on Friday. (edward.frankl@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
03-13-23 0512ET
