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

0512 GMT - IndusInd Bank's medium-term profitability is likely to improve faster, thanks to its strong business model in India's retail market, Nomura's Ankit Bihani says in a research report. Also, the Indian bank has significantly cleaned up its books and has taken one-time provisions to address legacy issues, the analyst says. Its board's commitment to improve governance, the ongoing search for new leadership, and its clear intention to "start FY 2026 on a clean slate" are key positives, the analyst says. Moreover, the stock's current valuation looks inexpensive. Nomura upgrades the stock to buy from neutral and raises the target price to INR1,050.00 from INR700.00. Shares are 4.6% higher at INR846.65. (ronnie.harui@wsj.com)

0139 GMT - Hong Kong Exchanges & Clearing's 2Q earnings are likely to be strong, UOB Kay Hian's Kenny Lim Yong Hui says in a note. HKEX's quarter-to-date headline average daily turnover reached HK$239 billion as of June 15 thanks to increased market velocity amid U.S. tariff policy uncertainties, the analyst notes. Hence, the stock-exchange operator's net profit is expected to grow 31% from a year earlier in 2Q. Also, HKEX's IPO pipeline is recovering steadily, with 156 active applications as of May 25. The brokerage raises the stock's target price to HK$470.00 from HK$390.00 with an unchanged buy rating. Shares are 1.3% lower at HK$408.00. (ronnie.harui@wsj.com)

0101 GMT - ANZ is the Australian bank most at risk from the continued growth of New Zealand's state-backed lender, Macquarie analysts reckon. They write in a note that government-backed challenger Kiwibank has recently been taking between 15% and 20% of new mortgage lending in the country. They think that the strong growth of Kiwibank, which has a lower return on equity than major lenders, hints at downside risk for banks' New Zealand returns in a soft housing market. Macquarie contends that the relative proportion of earnings that ANZ derives from New Zealand means it is most exposed of Australian lenders, followed by National Australia Bank. (stuart.condie@wsj.com)

1327 GMT - HSBC provided more than $16 billion in fossil-fuel financing in 2024, according to the latest Banking on Climate Chaos report. The report ranks the bank as the 20th largest financier last year out of a list of 65 banks. While HSBC committed in 2021 to withdraw financing or advisory services for clients that make new commitments to thermal coal expansion, the Bureau of Investigative Journalism found $2.4 billion worth of deals that appear to breach those conditions. These include a $900 million loan for JSW Steel, which is building a 900MW coal- and gas-fired power plant in India, an $815 million bond issuance for Czech state-owned utility CEZ, a $400 million bond issuance for Korea Mine Rehabilitation & Mineral Resources Corp. and a $300 million bond issuance for a subsidiary of Power Construction Corp. of China. HSBC said it follows policies that support its net-zero financed emissions by 2050 ambition but doesn't comment on client relationships. (elena.vardon@wsj.com)

1319 GMT - Lennar's latest results were something of a mixed bag, Oppenheimer's Tyler Batory and Jonathan Jenkins say in a research note. The Miami-based homebuilder's elevated SG&A and weaker average sales price were notable deviations in a negative direction, say the analysts. "It's a positive surprise that the company guided gross margin to be roughly flat quarter-over-quarter despite ASP that is expected to decline quarter-over-quarter," they add. Shares tick up 1.3% premarket, which the analysts believe may be due to buy-side expectations being reset lower heading into the earnings results. (denny.jacob@wsj.com; @pennedbyden)

1305 GMT - Larger U.K. banks with funding advantages are well placed to benefit from favorable margin dynamics, which should lead to further sector consolidation, J.P. Morgan says in a research note. The pressure on mortgage margins, which risk remaining structurally lower, could be one of the drivers of this, analysts Sheel Shah and Kian Abouhossein write. "We see consolidation across the sector as the natural path--with Natwest/HSBC best positioned given inorganic growth ambitions towards natural market shares, and stronger currencies, while we see Lloyds as more non-[net interest income] focused," they write. Potential opportunities include attractive mortgage portfolios in Metro Bank and Bank of Ireland, they note, also highlighting listed challenger banks which offer the opportunity for funding optimization with lending operations in under-penetrated segments for larger banks. (elena.vardon@wsj.com)

1244 GMT - Legal & General is expanding its asset management business internationally, particularly in the U.S., division CEO Eric Adler says to investors. "L&G Asset Management has strong foundations but significant untapped potential," the executive says. He highlights a disciplined plan for sustainable growth. The business is pushing for expansion in higher-margin segments such as private markets, wealth, wholesale and direct contribution channels. The parent group's balance sheet will act as a permanent source of capital to deploy new fund strategies and drive fee growth for the division, he notes. Shares in the London-listed provider of life insurance, pensions, retirement and investment services slip 1.1% to 253.6 pence. (elena.vardon@wsj.com)

1116 GMT - The increasing resistance from the Spanish government to BBVA's takeover bid for Sabadell coupled with the news that the targeted bank's U.K. unit has attracted interest makes the transaction look increasingly awkward, RBC Capital Markets says. "We are getting close to the point where it might be sensible for BBVA to walk away from the deal and announce a large buyback to compensate investors for >12 months of messy news flow," analyst Benjamin Toms writes in a research note. BBVA likely assumed in its offer price that it would offload TSB in the U.K. shortly after closing for a profit, so if the unit is sold beforehand, the transaction could be scuttled, he notes. Sabadell falls 1.6% while BBVA slides 2.0%. (elena.vardon@wsj.com)

1109 GMT - The most likely acquirer of Sabadell's U.K. unit TSB is NatWest, RBC Capital Markets says in a research note after the Spanish bank confirmed interest in the unit. Analyst Benjamin Toms calculates that the division could fetch a sale price of 2.6 billion pounds and that NatWest wouldn't need to raise capital. "At this level, we think that investors should broadly like this transaction. TSB is simple and the right size, which should keep execution risk low," he writes. Selling TSB would be a defensive play for Sabadell, which is trying to fend off a hostile takeover offer from larger peer BBVA which could be scuppered by such a move, Toms adds. The sale wouldn't be straightforward as it would need shareholder and regulatory approvals, he notes. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

June 18, 2025 04:20 ET (08:20 GMT)

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