Citigroup (C.N) is offering to pay some of its employees a portion of their annual bonuses early if they agree to voluntarily depart, Bloomberg News reported on Wednesday, citing people familiar with the matter.Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Devika SyamnathThe employees who take up the bank's offer will also be allowed to keep all of their deferred stock awards in addition to the bonus, the report said.Citigroup did not immediately respond to a Reuters request for comment.The news comes at a time when the bank is undertaking a sweeping reorganization that is expected to be complete by the end of the first quarter of next year.The third-largest U.S. lender, which normally awards the bonuses in February, is making the offer to its staff on a case-by-case basis, the report added.

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Citigroup offers partial early bonuses to encourage exits - Bloomberg News

Private equity firm Bain Capital has sold a $448 million stake in Indian private lender Axis Bank (AXBK.NS) in a block trade on Wednesday, according to a term sheet seen by Reuters.Reporting by Nishit Navin and Scott Murdoch; Editing by Janane VenkatramanBain affiliates BC Asia Investments VII, BC Asia Investments III and Integral Investments South Asia IV were offering 33.4 million shares, or a 1.1% stake in Axis Bank, at 1,119.70 rupees per share, the term sheet showed.It was not immediately clear the extent of Bain's total stakeholding in India's third-largest private lender.The selling price was at a 1% discount to Axis Bank's closing price on Tuesday. Shares of the company trimmed early session losses to trade 1.1% lower on Wednesday.Stock exchange data showed about 33.4 million Axis Bank shares had changed hands in block deals on Wednesday, but details of the buyers were not immediately clear.Bain, which bought a stake in Axis Bank worth 68.54 billion rupees in November 2017, has sold several tranches of shares through block deals recently. It sold a 0.7% stake in June this year and offloaded some stake in November 2022.Axis Bank shares have more than doubled since Bain first bought a stake in 2017, outperforming the Nifty Bank index (.NSEBANK) over that period.Shares of the lender are up about 20% this year.

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Bain Capital sells stake worth $448 mln in India's Axis Bank

Capital buffers for banks in the European Union have reached historic highs, with rises in interest rates boosting profitability to support record payouts to shareholders, the bloc's banking watchdog said on Tuesday.Reporting by Huw Jones; editing by David EvansSince taxpayers bailed out lenders in the 2007-09 global financial crisis, tougher rules have forced banks to build up their capital buffers, with further rises in the pipeline.The European Banking Authority (EBA) said in an annual report to June 2023 on Tuesday that macroeconomic uncertainty remained elevated, with average common equity tier 1 capital has reached its highest level, at 16%, indicating a resilient 27.6 trillion euro ($29.8 trillion) sector, despite turmoil in the industry in March, particularly in the United States."Banks' headroom above requirements remained at comfortable levels," EBA said, adding this was helped by stagnating lending volumes requiring less extra capital to be set aside.Dividend payments and share buy-backs were at record levels in 2022, with banks distributing almost 63 billion euros to shareholders, up from 48 billion euros they had planned at the start of that year, EBA said.The watchdog's review of 123 banks from across the EU and wider European Economic Area, produced over 1.2 million data points, an average of 10,000 per bank, which analysts will number crunch to spot trends and vulnerabilities.EBA suggested that the best may be over, however, as lending slows due to higher rates, with a potential knock-on effect on profitability and asset quality going forward.Despite stagnating EU economic growth, the ratio of problem loans at banks remained at its all-time low of 1.8% in June, EBA said, adding that impact from a slowdown in real estate markets were a pocket of risk.Return on equity, a measure of profitability, has risen to 11% in June 2023, the highest since EBA has begun collecting data, up from 7.9% a year earlier and almost all due to higher net interest income.($1 = 0.9270 euros)

EU banks make record payouts despite historic high capital buffers, says watchdog

The Bank of England said on Tuesday that implementing the final leg of the global Basel bank rules will increase capital requirements at UK banks by 3%, far less than for their European Union and U.S. peers.Reporting by Huw Jones; Editing by Jason Neely, Jamie Freed and Louise HeavensRegulators began rolling out the tougher capital rules after the global financial crisis of 2007-09 when taxpayers had to rescue ailing banks.Britain, the EU, U.S. and other countries are now finalising how they will implement the final leg of the so-called Basel III capital standards, tailoring them to local circumstances.The BoE published on Tuesday the first of two "near final" policy statements on implementing the Basel rules, saying it had made some tweaks to its original proposals following a public consultation.The BoE said it estimates the impact of the final leg of Basel on UK banks will be "low" at an average increase in Tier 1 capital of about 3% once fully phased in by January 2030."This is lower than the European Banking Authority’s estimate of a Tier 1 increase of around 10% in the EU and the US agencies’ estimate of a CET 1 increase of around 16% for US firms," the BoE said.U.S. banks have mounted a heavy lobbying campaign against the Federal Reserve's proposals for implementing Basel which follow several bank failures, including Silicon Valley Bank, earlier this year."The rules published today implement the latest Basel standards in the UK and include appropriate adjustments to take on points raised by respondents to our consultation," BoE Deputy Governor Sam Woods said in a statement.Britain and the U.S. have said they will begin rolling out the final phase of Basel III in mid-2025, with the EU, which has already finalised its Basel rules containing several temporary waivers, despite warnings from the European Central Bank, starting in January 2025 but with longer phase-ins.The BoE said its alterations boost competition by narrowing the advantage big banks have in using their own models to calculate capital buffers, over the more conservative norms for smaller lenders, to make capital ratios more comparable.More substantive changes are expected in a second policy paper in the second quarter of next year covering a minimum capital "floor" for lenders that use their own calculation models.Tuesday's statement includes an interim capital regime that small, domestic focused banks can apply as an alternative to Basel.

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UK lenders face smaller impact from Basel rules than rivals, BoE says

An Italian appeals court on Monday acquitted three former senior executives of Banca Monte dei Paschi di Siena (BMPS.MI) in one strand of a long-running derivatives case, boosting earnings prospects for the state-owned lender.Reporting by Emilio Parodi, editing by Valentina Za and Jane MerrimanItaly bailed out Monte dei Paschi (MPS) in 2017 and still owns 39% of the bank, after it raised 920 million euros ($989 million) last month by selling a 25% stake.The state must eventually exit MPS's capital in full due to European Union rules on state aid.The appeals court verdict had been closely watched by MPS investors because an acquittal frees the bank from obligations towards plaintiffs seeking damages in connection to derivatives deals blamed for playing a part in the bank's troubles.MPS had set aside money against such legal risks, provisions which it can now release. The bank did not provide a figure for the provisions, but MPS said in its latest financial statement that it faced more than 5 billion euros in legal claims as of Sept. 30.Its shares rose 2.5% by 1411 GMT, outperforming a flat Italian banking index (.FTITLMS3010).Milan's appeals judges acquitted former MPS Chairman Alessandro Profumo and former Chief Executive Fabrizio Viola, as well as the former head of statutory auditors Carlo Salvadori, saying there was no case to answer."I never lost my trust in the judicial system, I'm happy for the bank," said Profumo, a veteran Italian executive previously at the helm of both UniCredit and Leonardo.Losses on the derivatives deals, together with those MPS suffered during the euro zone debt crisis, have threatened to destabilise Italy's financial industry and triggered the Tuscan lender's 8 billion euro ($8.6 billion) bailout in 2017.Profumo and Viola had each been handed a six-year jail sentence by a lower court for allegedly incorrectly booking the two derivative deals known as Santorini and Alexandria, between 2012 and 2015.Salvadori had received a three-and-a-half year sentence.The main trial on these same deals related to the booking of the deals in the bank's accounts between 2009 and 2011.That case ended on Oct. 11 when Italy's highest court acquitted all 15 defendants, as well as advisers Deutsche Bank (DBKGn.DE) and Nomura (8604.T), which had arranged the deals for MPS in 2009.The deals were alleged to have helped MPS hide losses racked up after the ill-advised acquisition of a smaller rival in 2008, on the eve of the global financial crisis.Milan prosecutors had asked in 2018 for the Viola-Profumo case to be dropped, saying the three executives had followed accounting guidelines from regulators in booking the deals, but a judge rejected the request and sent them to trial.($1 = 0.9296 euros)

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Former Monte Paschi executives acquitted in derivatives trial

China's securities regulator has published draft rules aimed at slashing trading commissions for mutual funds and addressing the conflict of interest between the securities trading and fund sales businesses of brokerages, the latest reform to the $3.8 trillion mutual fund industry.Reporting by Shanghai Newsroom; editing by Miral FahmyThe China Securities Regulatory Commission (CSRC) said the proposals were designed to protect investors and better regulate the way fund managers allocate trading commissions.The rules, published by the CSRC for public consultation on Friday, are the latest attempt by authorities to revive confidence in the sluggish stock market and comes five months after the regulator urged mutual funds to cut management fees and reduce costs for investors.Analysts say the new rules would benefit brokerages with strong trading and research capabilities win commissions.According to the draft rules, trading commissions would be reduced for both passive and active fund products. SWS Research estimates that overall commissions would be slashed by one third.In addition, fund managers are banned from paying trading commissions to buy third-party services such as external expert consultancy, financial terminals or databases.Market participants say it is common for mutual funds to pay brokers additional commissions for services whose value is hard to justify, pushing up trading costs for fund investors.The draft rules also require the sales team of the mutual funds to not participate in choosing a broker and allocating trading commissions.The proposed rules also require that a mutual fund company must not pay more than 15% of its total trading commissions to a single brokerage, the CSRC said, adding that fund managers should choose brokerages that are "financially sound, well-behaved, and have strong capabilities in trading and research".The rules "will guide the brokerage business back to its root, back to research," Founder Securities said.Kaiyuan Securities expects the CSRC to tighten regulation over fund distribution fees in the next stage of the reform.

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China proposes trading cost cuts for mutual funds, to regulate commissions

Approximately 7 mortar rounds landed in the U.S. Embassy compound in Baghdad during an attack early on Friday, a U.S. military official told Reuters, disclosing a far larger attack than previously known.Reporting by Phil Stewart; Editing by Mark PorterThe official, speaking on the condition of anonymity, left open the possibility that more projectiles were fired at the embassy compound but did not land within it.The official said the attack caused very minor damage but no injuries.

Exclusive: About 7 mortar rounds landed in US embassy compound in Baghdad -official

European Union leaders are conscious of how "existential" financial aid is to Ukraine and will honour their commitments, a senior official said on Friday, less than a week before a summit where billions in aid for Kyiv hang in balance.Reporting by Gabriela BaczynskaAhead of the year's final summit of EU leaders in Brussels on Dec. 14-15, Hungary has threatened to veto a proposal for the bloc to grant 50 billion euros in budget aid to Kyiv through 2027, and another one to start membership talks with Ukraine.Failure to deliver on those promises would be seen as a major political blow in Ukraine, exhausted from fighting against a large-scale Russian military invasion since February, 2022.With most of Ukraine's revenue going to finance the war, the country relies heavily on economic assistance from the West to keep going."We know how existential it is. European leaders are responsible people - at least 26," said the official who is involved in preparing the summit. "They will stick to their commitments."Should Hungarian Prime Minister Viktor Orban veto a proposed review of the bloc's long-term budget that includes the 50 billion euros for Ukraine, the official listed possible workarounds.The official said either the other 26 EU countries could agree to extend their national contributions bilaterally to Kyiv, a more complicated and expensive option than going through the bloc's shared coffers.Alternatively, a smaller amount to cover a shorter period could be allocated from the bloc's budget as it stands, said the official, without the approval of the broader review.As part of that review, the bloc's executive has asked member countries to chip in some 60 billion euros in fresh funds to finance Ukraine, migration and other issues.

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EU leaders know of Ukraine's 'existential' need for aid - senior official

Spain's minister Nadia Calvino has sufficient support of EU governments to become next head of the European Investment Bank, Belgian EIB chairman Vincent Van Peteghem said on Friday.Reporting by Charlotte Van Campenhout; Editing by Benoit Van Overstraeten and Geert De ClercqEurope's antitrust chief Margrethe Vestager said in a statement on X that she had withdrawn her candidacy."I am grateful and honored to get the support of my fellow finance ministers to be at the helm of the European Investment Bank," Calvino said.She added that the EIB, the financial arm of the European union and the largest public development bank in the world, will have an even more important role going forward to fund the green transition, to provide financial support for the rebuilding of Ukriane and to support the role of Europe in the world.Calvino, 55, has been Spanish economy minister, a post that in Spain encompasses many aspects of public finances, since June 2018, when Pedro Sanchez first became prime minister.Politically independent and widely seen as a technocrat, she is a career civil servant and is not a member of Sanchez's Spanish Socialist Workers Party.

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Spains' Calvino to be next head of the European Investment Bank

U.S. Senator Elizabeth Warren and 48 other Democratic lawmakers on Wednesday urged top payments companies to resume work on implementing a sales code for gun merchants, according to letters seen by Reuters, citing how states have passed conflicting requirements on the issue.Reporting by Ross Kerber; Editing by Aurora EllisThomson ReutersRoss Kerber is U.S. Sustainable Business Correspondent for Reuters News, a beat he created to cover investors’ growing concern for environmental, social and governance (ESG) issues, and the response from executives and policymakers. Ross joined Reuters in 2009 after a decade at The Boston Globe and has written extensively on topics including proxy voting by the largest asset managers, the corporate response to social movements like Black Lives Matter, and the backlash to ESG efforts by conservative politicians. He writes the weekly Reuters Sustainable Finance Newsletter, which you can sign up for here - https://tinyurl.com/mvhkev7m In March, the payments companies Visa, (V.N) Mastercard, (MA.N) American Express (AXP.N) and Discover Financial (DFS.N) said they would delay the rollout of a "merchant category code," or MCC, meant to help detect suspicious firearms and ammunition sales to combat gun violence amid a spate of mass shootings.The companies at the time cited legislation being passed in Republican-led states to restrict the use of the codes, which they said created legal inconsistencies. Opponents worry the codes could be used to improperly track consumer behavior. According to firearms industry trade group NSSF, seven states have passed laws prohibiting use of the four-digit code, which was approved by an international standards body last year.Meanwhile in September California, the most populous U.S. state, passed a law requiring use of the code.In letters to each of the four companies dated Dec. 6 and seen by Reuters, Warren and the other signatories said at least the companies should implement the code in all states where it remains legal."There is no legal or technical rationale" to avoid doing so, they wrote.Representatives for each of the four companies did not respond to questions.In their letters, the lawmakers asked the companies a dozen questions about their work on the MCC to date, and cited the growing number of U.S. mass shootings, including over 600 so far in 2023. They referred to cases in which high-profile mass shooters charged large firearms purchases on their credit cards ahead of the crimes."Credit cards often facilitate the purchase of the weapons used to commit this violence," the letters state. They were co-led by Warren of Massachusetts and by U.S. Rep Madeleine Dean of Pennsylvania.NSSF spokesman Mark Oliva said the firearm association hopes to see federal legislation introduced to "protect the financial privacy of Americans making lawful firearm purchases with credit cards."For the latest news from companies, data, and decisions around ESG finance, sign up for the Sustainable Finance newsletter here.

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Democratic lawmakers ask payment firms to renew work on gun code

Russian banks' profits will reach record levels around 3.3 trillion roubles ($36 billion) this year, the central bank said on Thursday, before dropping off by about 1 trillion roubles in 2024 as high interest rates cool lending growth.Reporting by Elena Fabrichnaya and Alexander Marrow
Editing by Mark PotterProfits slumped by almost 90% in 2022 as the West imposed sweeping sanctions on Russia's financial sector over Moscow's actions in Ukraine, but banks have recovered this year through strong lending growth and high net interest margins, particularly thanks to the state's burgeoning defence budget."Lending accelerated in all segments in the third quarter, however a slowdown is possible at the end of the year," the central bank said.Corporate lending growth of 5.9% year on year in the quarter was driven by demand for loans from state contracts, the replacement of external debt and growth in housing construction, the bank said.The bank's 750 basis points of monetary tightening since July is expected to reduce demand for credit in the economy.Widening interest margins, in spite of higher rates, have boosted profits, the bank said. It forecast banks' 2024 profits at 2.1-2.6 trillion roubles."We are assessing 2024 as a little more challenging because the central bank's policy is aimed at fighting inflation and the rate is therefore very high, and the central bank has taken measures to restrict lending," said German Gref, CEO of dominant lender Sberbank (SBER.MM), in an interview broadcast on state television on Thursday."Nevertheless, we in our forecasts believe that we will be able to earn more next year than this year."Sberbank accounted for over half of the entire sector's profits in 2021.($1 = 92.5900 roubles)

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Russian central bank sees banks' profits shrinking next year from record high

A top U.S. banking regulator on Wednesday warned banks to manage the risks to consumers posed by increasingly popular "buy now, pay later" financing for retail spending, saying the service creates pitfalls for retail shoppers.Reporting by Douglas Gillison; Editing by Will Dunham<h2 data-testid="Heading" class="text__text__1FZLe text__dark-grey__3Ml43 text__medium__1kbOh text__heading_6__1qUJ5 heading__base__2T28j heading__heading_6__RtD9P article-body__heading__33EIm">THE TAKE</h2>As the year-end holidays approach, the statement from the U.S. Office of the Comptroller of the Currency, an independent arm of the U.S. Treasury, was the latest sign that federal regulators are scrutinizing the increasingly popular form of consumer credit.The loans allow borrowers to pay off a purchase in four or fewer interest-free installments but regulators warn they can lead to trouble, leaving unsuspecting borrowers overextended.<h2 data-testid="Heading" class="text__text__1FZLe text__dark-grey__3Ml43 text__medium__1kbOh text__heading_6__1qUJ5 heading__base__2T28j heading__heading_6__RtD9P article-body__heading__33EIm">KEY QUOTE</h2>"As the 'buy now, pay later' market grows and we enter the holiday shopping season, the guidance confirms our expectation that OCC-supervised institutions offering these products do so in a responsible manner," Michael Hsu, acting Comptroller of the Currency, said in a statement.<h2 data-testid="Heading" class="text__text__1FZLe text__dark-grey__3Ml43 text__medium__1kbOh text__heading_6__1qUJ5 heading__base__2T28j heading__heading_6__RtD9P article-body__heading__33EIm">CONTEXT</h2>Consumers with fewer dollars to spend are increasingly turning to "buy now, pay later" loans, with a record number borrowing nearly $1 billion this way during the annual Cyber Monday shopping spree alone, analysts say. The surge in business has boosted shares in "buy now, pay later" company Affirm (AFRM.O).