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

0810 GMT - The key to UniCredit's pursuit of Banco BPM is paying the right price, JP Morgan says in a research note. Banco BPM lifted its offer price for asset manager Anima, a deal it decided to go ahead with despite not knowing if it would cost it 40 or 290 basis points of capital. This depends on whether it can use the Danish compromise but the ECB's regulatory decision on this has been delayed. UniCredit's threat to drop out shows M&A price discipline and willingness to keep the offer price low, analysts write. They doubt UniCredit will pull its bid given its long-standing interest in BPM. If the Danish compromise is applied, UniCredit could sweeten its offer for BPM with 2.3 billion euros in cash, but if it isn't, the Italian bank is unlikely to pay a premium for its smaller peer, they add. (elena.vardon@wsj.com)While no regulatory action is required, and corrective measures have been taken, recent fines for prolonged service disruptions and the CFO's departure could collectively raise Maybank's reputational risk and hurt investors' confidence, TA Securities analyst Li Hsia Wong says. "Maybank CFO's Departure May Damp Investors' Confidence -- Market Talk," at 0432 GMT, incorrectly said that no corrective measures have been taken.

0432 GMT - The sudden departure of Malayan Banking's CFO could raise governance concerns, particularly as the lender faces reputational challenges, including previous regulatory fines, TA Securities says in a research note. Analyst Li Hsia Wong notes the management's comments that the finance chief's departure is an isolated case, won't result in any financial losses and wasn't prompted by law-enforcement agencies. While no regulatory action is required, and corrective measures have been taken, recent fines for prolonged service disruptions and the CFO's departure could collectively raise Maybank's reputational risk and hurt investors' confidence, she adds. TA Securities maintains its buy rating on Maybank with a target price of MYR12.15. Shares are 0.8% lower at MYR10.48. (yingxian.wong@wsj.com) Corrections & Amplifications

This item was corrected at 0642 GMT. The original version incorrectly said that no corrective measures have been taken, according to TA Securities analyst Li Hsia Wong.

0330 GMT - Westpac continues to look expensive to Macquarie analysts given risks around the Australian bank's extensive tech overhaul. Maintaining an underperform rating on the stock, they write in a note that the composition of the lender's 1Q update looked a little soft. They think that costs were only lower than the market had expected due the timing of various expenditures, while margin trends look relatively soft despite stable interest rates. They reckon that this points to downside risk to revenue expectations as rates fall. Westpac's valuation multiple of 17 times fiscal 2026 earnings is in line with larger rival NAB, and at a 26% premium to ANZ, they add. Macquarie keeps a A$28.00 target price on the stock, which is down 2.4% at A$32.50. (stuart.condie@wsj.com)

0101 GMT - Westpac's 1Q update will lead to less conviction on capital management, Morgan Stanley says. Westpac's CET 1 ratio--a key measure of its ability to withstand financial shocks--missed MS's estimate by 0.2%. "As a result, we've reduced our medium-term buyback forecasts by A$1 billion, although we still assume another A$0.15/share (or A$500 million) special dividend at the 1H result," analyst Richard E. Wiles says. Still, MS says Westpac's board may choose not to pay this special dividend, noting it has a new CEO. MS also cites "the 'ramp up' in Project UNITE, its non-housing loan growth ambitions, and forecast for a proforma 1H CET1 ratio of just 11.8%" as reasons why Westpac might be cautious about additional capital management. (david.winning@wsj.com; @dwinningWSJ)

2231 GMT - It will likely be some time before Bendigo and Adelaide Bank's core earnings improve. That's the conclusion of Citi after the Australian lender reported a 1H result featuring a 4-5% core earnings miss relative to consensus hopes and signaled costs are on the rise. Analyst Brendan Sproules expects Bendigo's costs to rise by 8.5% in FY 2025 and by 3.5% in FY 2026, reflecting ongoing inflation and rising investment. "With relatively flat forecast revenue over this time frame given existing Net Interest Margin headwinds and rate cuts, we forecast core earnings to trough in late FY 2026," Citi says. It retains a sell call on Bendigo's stock. (david.winning@wsj.com; @dwinningWSJ)

1602 GMT - Sweden's Sveriges Säkerstallda Obligationer (SBAB), which offers savings and housing financing, markets a new five-year covered bond on Monday. SBAB targeted a less-common area of Sweden's covered bond market in order to attract demand, ING's Marine Leleux says in a note. Issuance of five-year covered bonds is less common in Sweden, with most supply being of a three- or four-year maturity, she says. "By issuing a 5-year bond, SBAB is positioning its new instrument just outside of the busier section of the curve." (miriam.mukuru@wsj.com)

(END) Dow Jones Newswires

February 18, 2025 04:20 ET (09:20 GMT)

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