The latest Market Talks covering Financial Services. Exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

0811 GMT - United Overseas Bank's earnings should remain resilient this year, as around 85% of its loan book is exposed to Asean and Greater China, CGS International analysts write in a note. The Singapore bank could benefit from the rerouting of trade flows away from the U.S., they say. However, potentially steeper rate cuts by the Fed coupled with a lagged effect of loan repricing could exacerbate margin pressure in 2H, they add. UOB could also continue to recognize higher general provisions for the remainder of the year. CGS International cuts its target price for the stock to S$38.60 from S$38.80, while maintaining an add rating. Shares are down 0.2% at S$34.41. (amanda.lee@wsj.com)

0806 GMT - Caution is warranted for Irish banks given the uncertainties ahead, J.P. Morgan says in a research note after AIB Group and Bank of Ireland's trading updates. These uncertainties stem from U.S. policy risks and their potential long-term impact on the country's economy, which could lead to weaker sentiment and slower balance sheet momentum, analysts Sheel Shah and Kian Abouhossein write. They also point to risks from interest-rate cuts given that Irish banks are highly rate-sensitive. Because of these, the analysts prefer having exposure to U.K. banks. (elena.vardon@wsj.com)

0801 GMT - Metro Bank's loan book only edged up on quarter when adjusted for its recent disposal, which is disappointing when compared with consensus expectations and the bank's mid-term growth guidance, Keefe, Bruyette & Woods says in a note. Despite this softness, the group backed its guidance and noted that it was profitable on underlying and statutory bases for the three-month period. Achieving its ambitious plans for market-leading profitability is still demanding despite the support from the winding down of old loans, analysts Edward Firth and Elise Yu Ge write. This requires consistent double-digit new business volume growth alongside expanding margins and maintaining credit quality, they note. Shares rise 2.7% to 107 pence. (elena.vardon@wsj.com)

0801 GMT - Metro Bank shares rise to their highest price in five months after the high-street lender's first-quarter update, in which it confirmed it is on track to meet its guidance. Shares were up 3.6% to 108 pence, their highest price since late November. It was reassuring to learn that the quarter was profitable, analyst John Cronin of SeaPoint Insights says. This evidences that the asset rotation and deposit optimisation strategy is working, he says. The reduction in net loans encompasses a portfolio disposal and the run-off of the rest of consumer and government-backed lending portfolios, showing that there is some core net loan growth coming through too. The fall in deposits is also a good thing as this reflects funding-cost optimization, he adds. (elena.vardon@wsj.com)

0745 GMT - The biggest surprise in Zurich Insurance's quarterly print was the 44% like-for-like growth in the present value of new business premiums of its largest life insurance business, Jefferies says in a research note. This business is in EMEA and compares with a 20% contraction in the smaller Asia-Pacific life unit, the analysts add. Against the rapid growth in life, the non-life business results--which are a larger contributor to profits and saw single digit percentage increases--seem to more closely reflect investors views, analyst Philip Kett writes. Shares slip 0.7% to 589 Swiss francs. (elena.vardon@wsj.com)

0742 GMT - Zurich Insurance's first-quarter result was relatively underwhelming and is unlikely to lift shares, Morgan Stanley says in a research note. The Swiss insurer posted 5% growth in its property and casualty gross written premiums, in line with its annual guidance. However, some underlying trends surprised a little, with its North America premiums only edging up 1% despite a 6% rate change, analysts Hadley Cohen and Daniel Wilson-Omordia write. "This should be viewed as strong cycle management, which is clearly a good thing, but the key question will be how we should think about the profitability outlook from here," they note. Shares edge down 0.7% to 589.2 Swiss francs. (elena.vardon@wsj.com)

0740 GMT - Zurich Insurance's print was broadly positive though the disclosure was limited, Keefe, Bruyette & Woods says in a research note after the Swiss group's update. "We think the non-life rating narrative and commentary about expanding margins in both commercial and personal lines is positive versus expectations," analyst William Hawkins writes. The feared deceleration in U.S. commercial property rate momentum doesn't seem to materialize, he adds. The analyst also notes better pricing but softer volume growth which can be seen as a function of further portfolio optimization. Shares have been relatively weak since November's business plan update so expectations might be low, Hawkins adds. The stock trades 0.6% lower at 589 Swiss francs. (elena.vardon@wsj.com)

0716 GMT - U.K. financials, cyclicals, and domestic stocks have cheap valuations relative to their U.S. peers, and are likely to perform better than their counterparts, Clive Beagles, senior fund manager at JO Hambro says in a note. However, U.K. defensive stocks such as Bunzl have expensive valuations following years of outperformance, he says. Overall, the U.K. market is "cheap compared to the rest of the world and other major markets," Beagles says. (miriam.mukuru@wsj.com)

0620 GMT - AMMB Holdings' earnings outlook may remain resilient despite expectations for Malaysia's economic growth to weaken, says Maybank IB analyst Desmond Ch'ng in a note. He cuts the lender's FY2026 and FY2027 net profit forecasts by 4.0% and 5.3%, respectively, after Maybank revised down the country's GDP projections. While a potential rate cut and softer loan growth may weigh on earnings, Ch'ng highlights AMMB's strong capital buffer, limited U.S. trade exposure, and manageable credit risks as key strengths. Asset quality may remain stable, with credit costs likely to come in below guidance, he adds. Maybank lowers AMMB's target price to MYR6.05 from MYR6.45 but maintains a buy rating, citing contained downside risks. Shares are unchanged at MYR5.30. (yingxian.wong@wsj.com)

0559 GMT - NAB's bear at Citi sees pressure on dividends if Australia's central bank delivers interest-rate cuts on a scale widely anticipated by economists. Analyst Thomas Strong writes in a note that NAB's first-half core earnings held up reasonably well, but that there may have been a benefit from a cost skew toward the second half. The outlook for that period, and beyond, gets tougher given that the Reserve Bank is expected to resume rate cuts next week. NAB sees a terminal cash rate of 2.85% and Citi thinks 3.1% is more likely. Strong sees anything on this scale pressuring forward earnings and the sustainability of NAB's dividend. Citi has a sell rating and A$30.50 target price on the stock, which is up 1.9% at A$36.54. (stuart.condie@wsj.com)

0350 GMT - Australian banks' technology spending is likely to come under scrutiny over the coming years as investors focus on the benefits of higher investment, according to the head of KPMG's local banking and capital markets practice. David Heathcote says fiscal 1H technology expenses across the big four banks rose 11% on year, with Commonwealth, Westpac, NAB and ANZ responding to customer demand for innovation and a focus on AI. This lifted the average cost-to-income ratio by 89 basis points. He points out that profits and dividends rose by 3.5% and 2.6%, respectively, across the same period. Consequently, he anticipates an "increasing focus on the majors' ability to generate an enhanced return from their investments." (stuart.condie@wsj.com)

0322 GMT - National Australia Bank is likely to cut its dividend two years from now, Macquarie analysts warn. They still see NAB as "the better horse in a slow race" between bank stocks, but tell clients in a note that limited inorganic capital generation and only 30 basis points of surplus capital lead them to predict a cut in the first half of the 2027 fiscal year. They think that NAB's margins will hold up better than those of its rivals amid lower interest rates, and see early signs of progress as NAB focuses on deposit growth and stability in proprietary mortgages. Macquarie keeps a neutral rating and A$35.00 target price on the stock, which is up 1.6% at A$36.45. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

May 08, 2025 04:20 ET (08:20 GMT)

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