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

0815 GMT - Acquisitions remain where it is at for Aviva, Hargreaves Lansdown says in a market comment after the British insurer and asset manager's first-quarter update showed the benefits of recent deals and a strong balance sheet. The group said it is on track to complete its 3.7 billion-pound takeover of peer Direct Line toward the middle of the year, though this is subject to clearance from the U.K. competition regulator given it launched a probe into the transaction earlier this week. "Aviva's rocksolid balance sheet means it should be able to absorb the motor insurance specialist without compromising on its 6.8% dividend yield," analyst Derren Nathan writes, pointing to its solvency ratio of 201%. Shares are flat at 571.8 pence and are up 22% year to date. (elena.vardon@wsj.com)

0806 GMT - Aviva reported a strong update that is likely to lead to consensus forecast upgrades for both its life and property and casualty businesses despite only covering the first quarter, J.P.Morgan Cazenove says in a research note. The British insurer and asset manager's life new business profits beat JPMC's estimates and its property and casualty combined ratio was stronger than they had penciled in. "We think Aviva's outlook statement is positive, reiterating targets including an ambition to reach 280 million pounds of profit in the Wealth division," as well as continued improvement in its combined ratio this year, analysts write. Shares edge down 0.1% to 571 pence. (elena.vardon@wsj.com)

0752 GMT - DBS seems well-capitalized and its healthy balance sheet should better position it to ride out current uncertainties, says OCBC Investment Research Singapore strategist Carmen Lee in a note. Given the current trade tensions, market volatility is widely expected to persist,she writes. Heightened risks of a trade war have also made it difficult for companies to plan or invest and this could weigh on demand for loans, she says. Unlike the Global Financial Crisis or the Asian Financial Crisis, OCBC doesn't expect earnings to be as severely affected, when aggressive allowances hurt profitability. OCBC has a S$50.00 fair value estimate on the stock. Shares are up 1.7% at S$44.99. (amanda.lee@wsj.com)

0710 GMT - The results of Allianz look disappointing as its first-quarter solvency II ratio and its net income came in below consensus, Jefferies says in a research note. The difference between the German insurer's print and market expectations is due to heavier non-operating expenses and market movements in its asset management line, which were only partially offset by surprisingly high net flows, analyst Philip Kett writes. These non-operating items will be in focus, he notes. Shares open 3% lower.(elena.vardon@wsj.com)

0551 GMT - There is strong momentum in the primary bond market in the eurozone with plenty of new deals in good demand and with modest new issue premiums, says Danske Bank Research's Kristoffer Kjaer Lomholt in a note. "The trend we saw last week has continued with plenty of new deals, and issuers are taking advantage of a market that is opened for issuance," the co-head of fixed income and FX research says. Belgium's new five-year bond is already trading some 3bps tighter in the secondary market versus its issuance at mid-swaps +28bps, he says. The EIB's 4 billion euro three-year benchmark is also trading a few basis points tighter versus its mid-swaps +10bps pricing, he says. There were also numerous covered bond deals and corporate bond issuances. (emese.bartha@wsj.com)

0502 GMT - Commonwealth Bank of Australia's steady 3Q revenue growth and discipline on costs does nothing to shift UBS analyst John Storey's view that the stock is significantly overpriced. Storey tells clients in a note that Australia's largest lender looks likely to hit consensus forecasts for its fiscal year. He thinks that retail profitability is probably supported by growth in proprietary channels, and points out that business banking is growing at a faster rate than the industry as a whole. However, the stock--which is trading at record levels despite cyclical and macro headwinds--offers a dividend yield of less than 2.9%. He keeps a sell rating on the stock and sees better value elsewhere. UBS has a A$115.00 target price on the stock. Shares are up 0.8% at A$168.80. (stuart.condie@wsj.com)

0153 GMT - Hong Leong Bank is expected to weather global trade tensions, given its minimal export exposure and strong retail-driven, secured loan portfolio, Kenanga IB analyst Clement Chua says in a note. He reckons that the lender's MYR500 million overlay could provide a strong credit risk buffer. The outlook for its associate, Bank of Chengdu, also appears stable, supported by a focus on state-backed loans, he adds. Kenanga lowers Hong Leong Bank's target price to MYR24.50 from MYR27.40 after revising its valuation method to separately assess Bank of Chengdu and Hong Leong Bank's domestic operations, but maintains an outperform rating, on the bank's stability and above-industry returns. Shares are unchanged at MYR20.20. (yingxian.wong@wsj.com)

0928 GMT - Experian's guidance for the next fiscal year is in line with expectations but seems to be building in some caution, J.P. Morgan analysts say in a research note. The London-listed credit rating agency issued total revenue and organic growth guidance that isn't likely to lead to material estimate changes, analysts Sylvia P Barker and Karin So write. However, its margin--which is expected to rise by 30 to 50 basis points--has upside given its strong performance in fiscal 2025 and the impact of divestments in the year, they add. "The results again highlight Experian's ability to perform strongly even in a sideways lending environment given their ongoing focus on expanding their addressable markets," they add. Shares fall 1.6% to 3,919 pence. (elena.vardon@wsj.com)

0906 GMT - Other banks such as Bankinter's Avant Money will probably enter Ireland's consolidated market before Goldman Sachs, Davy Research says in a research note. Bloomberg reported that Goldman Sachs is considering expanding its digital bank Marcus into Germany and Ireland. "Compared to euro area averages, Irish households prefer to retain significantly larger balances in current and overnight accounts, with only small amounts of deposits held outside the three domestic banks," analysts Diarmaid Sheridan and Thomas Ryan write. The players that have entered the savings market in the country in recent years have had limited impact to date and the non-bank entity of Spain's Bankinter is set to launch its deposit offering soon. The analysts note that while Goldman is well resourced, it will likely be some time before its plans come to fruition. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

May 15, 2025 04:20 ET (08:20 GMT)

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