The latest Market Talks covering Financial Services. Exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0901 GMT - Commerzbank's net interest income is set to materially accelerate on continued strong loan growth, Deutsche Bank says in a research note. NII seems to have troughed and growth should resume as early as the forth quarter, analysts write. This will be "followed by meaningful expansion driven by its replicating portfolio, loan and deposit volume growth, and fading headwinds from interest rate cuts and a rising deposit beta," they say. The bank gave encouraging yet conservative guidance at its third-quarter results, while posting a positive NII surprise. NII growth should boost profitability and capital returns in the coming years, they say. DB raises its rating on the stock to buy from hold and its target price to 37 euros from 35 euros. Shares rise 4.2%. (elena.vardon@wsj.com)
0827 GMT - The upgrade in Hannover Re's net income guidance for 2025 and the issuance of a 2026 floor target is pleasing, Jefferies says in a research note. The German reinsurer now expects net income to be around 2.6 billion euros this year, up from around 2.4 billion euros previously, on the back of a strong performance in the first nine months. "Such strong profitability comes in spite of prudently booking natural catastrophe losses in line with budget (when losses are far below)," analysts Philip Kett and Derald Goh write. They also point to the guidance for at least 2.7 billion euros in net profit for 2026. This is 2% ahead of analysts' estimates and is more meaningful than it seems due to management's prudent track record. Shares rise 3.2%. (elena.vardon@wsj.com)
0808 GMT - JTC's agreement to be taken over by private-equity firm Permira at 1,340 pence a share in cash could fail to excite as some had expected a higher price, RBC Capital Markets says in a research note. Shares in the U.K. financial-services company closed at 1,358 pence on Friday. "Our conversations with shareholders suggested that price expectations were higher at [1,450 pence or more], so we think there will be a degree of disappointment [Monday]," analysts Andrew Brooke and Karl Green say. The price could also reflect the cost of employee-share ownership and an admission that JTC needs to invest in AI, they add. "We are not convinced that this is yet a done deal." JTC shares open 4.7% lower at 1,294 pence. (elena.vardon@wsj.com)
0714 GMT - Investors buying Chinese bank stocks in December, historically a strong month for MSCI China, are expected to qualify for 2025 interim dividends to be paid in January 2026, CGS International analysts Michael Chang and Laura Li say in a note. These dividends are particularly attractive to China's life insurers, as southbound--mainland Chinese investing in Hong Kong--net buy flows gradually recover. CGS maintains an overweight call on the sector, citing easing pre-provision profit pressures and favorable dividend yield spreads over Treasury yields. The bank has buy calls on China Construction Bank and Industrial and Commercial Bank of China for their attractive FY 2025 dividend yields which are above 5%, and favors China Merchants Bank for its strong management and potential for higher dividend payout ratios in 2026-2027. (jason.chau@wsj.com)
0512 GMT - Singapore lenders are likely to still face interest margin pressure and soft loan growth, says CreditSights's Karen Wu in a note. The city-state's benchmark interest rate hasn't stabilized yet and Fed rate cuts are likely to flow through to both Singapore and Hong Kong, which could weigh on net interest margins, she says. Loan growth may remain soft despite the lift from lower rates, given slower economic growth, she adds. Noninterest income at the three lenders should remain high, but on-year growth may be in the single digits due to high bases. (megan.cheah@wsj.com)
0436 GMT - OCBC's growing wealth franchise gains the lender new bulls in CGS International's Tay Wee Kuang and Lim Siew Khee. The Singapore lender's 3Q net new money inflow for its wealth-management business was much stronger than its average quarterly run rate, which helped send its wealth-management fees to a record high, the analysts note. The boost to OCBC's wealth franchise is likely to drive noninterest income, they add. Nonetheless, the analysts trim their 2026 and 2027 earnings per share estimates by 4% and 1.8%, respectively, to take into account likely lower net interest margins. CGS International upgrades its rating on the stock to add from hold and lifts its target price to S$19.50 from S$17.20. Shares are 1.2% higher at S$18.00. (megan.cheah@wsj.com)
0228 GMT - DBS Group Holdings' non-interest income will likely be the main driver of earnings growth, Phillip Securities Research's Glenn Thum says in a research report. Heightened volatility will probably benefit the bank's trading income, and continued wealth-management fee income growth will likely stem from shifts in investor sentiment and assets-under-management inflows, the analyst says. The brokerage prefers DBS among Singapore's banks given its continued capital return plans and its fixed dividend per share policy, which offer greater visibility and stability compared with its peers. The brokerage raises the stock's target price to S$58.00 from S$52.00, with an unchanged accumulate rating. Shares are 1.4% lower at S$54.23. (ronnie.harui@wsj.com)
0228 GMT - OCBC's stronger noninterest income should support higher profits over the next few years, says RHB Research's Singapore Research team in a note. The Singapore lender's 3Q noninterest income rose to a new quarterly high on robust wealth and customer treasury flows. While the bank expects a narrower net interest margin this year, thanks to another likely U.S. Fed rate cut this year, this outlook is likely cushioned by a refined credit cost guidance of 20 bps, the analysts say. Investors likely have to wait for the lender's 4Q results for capital-management plan updates. RHB Research raises its 2025, 2026, and 2027 PATMI estimates by 3%, 1% and 1%, respectively. RHB also lifts the stock's target price to S$18.70 from S$17.50 but maintains its neutral rating. Shares add 0.8% to S$17.93.(megan.cheah@wsj.com)
0126 GMT - OCBC's dividend policy could be a rerating catalyst for its shares, says DBS Group Research's Lim Rui Wen in a note. The Singapore lender is expected to pay a 60% total dividend payout ratio for 2025 plus share buybacks, but could raise its payout as it reviews its capital returns policy, she says. She raises her earnings estimates through 2026 by 0%-2% after revising her NIM and noninterest income estimates. Still, she remains watchful over OCBC's asset-quality risks in a slower global growth environment, citing accelerating Federal Reserve rate cuts and a weaker commercial real estate sector. DBS upgrades its rating to buy from hold and lifts its target to S$19.80 from S$15.80. Shares rise 0.6% to S$17.88.(megan.cheah@wsj.com)
0020 GMT - ANZ's annual result contains little of significance for the bank's bulls at Jarden. Analysts there call the fiscal 2025 update "a nothing result", telling clients in a note that underlying trends are broadly consistent with expectations. In summary, they say that volumes are ok, net-interest margin is reasonable, bad debts are low, and capital is sufficient. With little incentive for a new CEO to deliver a standout result so early in his tenure, they aren't surprised. Jarden has a last-published overweight rating and A$34.00 target price on the stock, which is up 1.2% at A$37.24. (stuart.condie@wsj.com)
0012 GMT - Macquarie analysts are encouraged that ANZ's new chief executive hasn't taken what would have been an obvious shortcut to boosting FY 2026 performance. Annual cost guidance is A$200 million-A$300 million lower than they had anticipated and the Macquarie analysts applaud CEO Nuno Matos for not inflating the cost base, which would have made it easier to lower costs over future periods. They tell clients in a note that this sort of transparency is crucial to maintain confidence in management's strategy. Macquarie has a neutral rating and A$34.00 target price on the stock, which is up 1.0% at A$37.17. (stuart.condie@wsj.com)
2358 GMT - ANZ's near-term cost outlook and capital position both look better than expected, Citi analyst Thomas Strong says. The Australian bank's 2H operating costs were lower than analysts had anticipated, which means that its fiscal cost base is smaller than that in analysts' forecasts. Strong tells clients in a note that company guidance for a 3% rise in annual costs implies FY 2026 costs of A$11.5 billion, compared with consensus of A$11.75 billion. Strong adds that proforma CET1 capital also looks strong compared with that of ANZ's peers. Citi has a last-published neutral rating and A$37.00 target price on the stock, which is up 0.7% at A$37.07. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
November 10, 2025 04:20 ET (09:20 GMT)
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