“We are astonished that ‌it took UniCredit more than 18 months to present a unilateral plan that lacks basic understanding of the drivers of our business model, despite regular investor meetings during this period,” Orlopp remarked, in response to the news of the Italian lender “laying out” a strategy to improve the target’s performance independently of any deal.

After building a near 30% stake in Commerzbank since September 2024, despite strong German resistance, both at industry and political levels, the Italian bank in March 2026 unveiled a 35 billion-euro (USD 41 billion) all-share offer for its acquisition target.

In an unscheduled analyst call, UniCredit outlined both its suggestions for Commerzbank and the possible outcomes of its takeover offer. However, both the second-largest German lender and Friedrich Merz, the European nation’s Chancellor, rejected UniCredit’s approach as hostile.

“Yes, we need large banks in Europe, but let me make one thing very clear in light of recent events: this does not mean that every form and type of takeover is welcome in Germany,” Merz said.

Commerzbank, which UniCredit described as a sector laggard that risked “becoming increasingly unfit” for the challenges facing the industry, said the Italian counterpart’s proposals reflected a lack of understanding about the German venture’s business model.

UniCredit has been pitching for Commerzbank to undertake cost cuts in its international network and “rampant bureaucracy” in its domestic business, suggesting the move would add 600 million euros to the 2028 profit consensus forecast at the German bank.

UniCredit also said the low premium of its bid would ensure the Commerzbank stake does not rise much above 30%.

“One scenario is we expect low take-up (from Commerzbank shareholders), we’re happy. Financially, we win. We sit back. UniCredit would not seek to gain control of Commerzbank for a further 12-18 months, so it could resume capital distribution ‌plans and rebuild its cash reserves. We go back to the status quo,” UniCredit CEO Andrea Orcel said.

“Under German corporate rules, UniCredit could be declared in control of Commerzbank with a stake as low as 40% because that can be enough to drive decisions at shareholder meetings. That would put returns that UniCredit investors reap on the investment in Commerzbank below the cost of their capital – a red line for Orcel, a veteran dealmaker,” reported Reuters.

If UniCredit gets Commerzbank’s control, then the Italian lender may have to buy out minority shareholders in Commerzbank’s Polish unit, mBank, in cash.

According to Orcel, discussions were ongoing with Polish authorities on the topic.

“We have levers to keep … (out of) a situation where we have excessive capital consumption and a cascade offer in cash that are penalising. The current Commerzbank stake is ⁠giving UniCredit shareholders a 20% return on investment. The return would be much lower on a stake of 50% plus one share,” he said.

“But we will execute an industrial and strategic move… at the end of the day, this is why we’re here,” The UniCredit CEO added.

The post Commerzbank rejects UniCredit’s fresh takeover offer, calls it hostile appeared first on International Finance.

Colin O’Flynn has more than 14 years of experience and most recently served as a Commercial Banking Relationship Manager with Hancock Whitney.

In addition to his expertise in commercial and industrial lending, Colin O’Flynn has extensive market knowledge, an established client network across the New Orleans market and strong community connections through his involvement with the Fore! Kids Foundation.

As a Private Client Relationship Manager and Certified Financial Planner (CFP), Paul Delord has more than 17 years of experience in wealth management and financial planning and previously served as a Wealth Advisor and Assistant Vice President at Hancock Whitney Bank.

Paul Delord maintains his CFP, CBEC, Series 7 and 66 licenses, as well as Louisiana Life and Health Insurance licenses.

New Orleans Market President Jimmy Dunn said, “We are pleased to welcome Colin and Paul to First Horizon. Their experience and commitment to building client relationships will be instrumental as we continue to expand our New Orleans banking team.”

Meanwhile, First Horizon Bank and the New Orleans Jazz & Heritage Festival celebrate their long-standing partnership and its economic impact across the New Orleans region in support of the music, culture and community spirit that make Jazz Fest one of the South’s premier events.

New this year, First Horizon is expanding its sponsorship as the “Official Bank and Credit Card of Jazz Fest” with an exclusive Lounge experience. The First Horizon Lounge, located near the Festival and Congo Square stages, is available exclusively to First Horizon debit and credit cardholders with complimentary food, refreshments and a cash bar. Festival attendees may gain access to the First Horizon Lounge by presenting an eligible First Horizon physical card or the card in their digital wallet.

The post First Horizon Bank strengthens New Orleans team with seasoned hires appeared first on International Finance.

According to the bank, CFO Evie Kostakis will be stepping down from her role to pursue another international leadership opportunity following an orderly transition, expected for the second half of the year.

Evie Kostakis took on the job in 2022, while Julius Baer’s management team underwent extensive change over the past two years. The Swiss bank underwent a string of painful losses and writedowns during that period.

In Julius Baer’s annual reports for 2022 and 2023, the bank stated that the CFO was responsible for overseeing credit risk during a challenging period.

In 2023, Julius Baer got hammered with ⁠the fallout from the collapse of Austrian property tycoon Rene Benko’s Signa group, leading the bank to post loan losses of 586 million Swiss francs (USD 742 million) in early 2024.

Julius Baer, as of April 2026, has remained under an enforcement assessment by the Swiss financial market regulator FINMA over the Signa losses. The private banker has been prohibited from announcing new share buybacks.

The bank ousted CEO Philipp Rickenbacher, replacing him with outsider Stefan Bollinger, a Goldman Sachs banker who took over in January 2025. Longstanding chairman Romeo Lacher followed suit, immediately ⁠after Bollinger’s arrival. Ex-HSBC boss Noel Quinn replaced Lacher.

Then, in May 2025, Baer’s chief risk officer, Oliver Bartholet, announced his retirement, as the venture revealed a 130-million-franc credit charge after ⁠reviewing its credit portfolio.

In November last year, the bank announced further losses of 149 million francs, writing down loan positions in its real estate book, saying they no longer fit with the operational strategy. While stating that its full-year profit for 2025 would fall below 2024’s levels, Julius Baer said CEO Bollinger and Chairman Quinn were steering the bank back towards pure wealth management, in a major policy realignment.

The post Crisis-ridden Julius Baer launches CFO hunt as Evie Kostakis resigns appeared first on International Finance.

Alfonso Gomez, an industry veteran, joins from Banco Bilbao Vizcaya Argentaria (BBVA), where he spent more than three decades in a range of senior roles across key financial locations such as New York, London, Madrid, and Zurich. Most recently, he served as CEO of BBVA Switzerland for over 12 years. Alfonso Gomez will be based in Geneva and report to Ida Liu, CEO of HSBC Private Bank.

“We are delighted to welcome Alfonso Gomez, whose extensive experience in Switzerland, strong track record of leadership and commitment to excellence in customer service ideally position him to lead our Swiss Private Bank, an integral and strategically important part of our global franchise,” said Ida Liu.

In addition to being a financial industry veteran, Alfonso Gomez has been actively involved in the Swiss financial ecosystem. Since 2018, he has served on the board of the Association of Foreign Banks in Switzerland and has held the position of Vice Chairman since early 2023. He is also a board member of the Swiss Finance Institute.

Daniel Calado will now return to his responsibilities as Chief Financial Officer of HSBC Private Bank Switzerland and EMEA, while continuing as a member of the banking venture’s executive committee.

“Under Alfonso Gomez’s expert leadership, our Swiss Private Bank will continue to leverage HSBC’s global and diversified business model for the benefit of our clients, addressing the private banking needs of entrepreneurs and businessmen in some of the world’s fastest-growing markets. We take this opportunity to warmly thank Daniel for his excellent leadership and valuable contributions, which he will continue to develop as a key member of our executive committee,” said Yannick Hausmann, Chairman of the Board of Directors of HSBC Swiss Private Bank.

It is worth mentioning that HSBC Swiss Private Bank had Gabriel Castello as its CEO until December 2024, when he was promoted to interim CEO of global private banking. John Shipman then took over as interim head. However, his tenure lasted less than a year, as he joined rival Barclays as their Swiss CEO in November 2025.

The post HSBC Swiss Private Bank appoints Alfonso Gomez as new CEO appeared first on International Finance.

Announcing the move, Capital A founder and CEO Tony Fernandes said Hamid’s onboarding will help spearhead growth, including a possible listing of the business in Hong Kong ⁠by mid-2026.

In January 2026, Capital A completed the sale of its short-haul aviation business to AirAsia X, allowing the latter to focus on expanding operations and reducing costs while Capital A looked to grow its businesses in areas including logistics, branding and aircraft maintenance. The move, along with Hamid’s appointment, comes amid both companies facing headwinds caused by the Middle East conflict, which has sent jet fuel prices soaring.

Capital A’s shares are down 27% over the past month, while AirAsia X’s have plunged 41%.

According to Tony Fernandes, Capital A has seen an ‌impact from the Middle East conflict on its businesses, which include aircraft maintenance, freight and logistics, food catering and branding services. However, AirAsia would work to keep its fares low, while desisting from the practice of cancelling flights amid the ongoing conflict. The budget carrier would also provide updates on its operations in the first week of April.

Capital A is also aiming to list its branding unit, AirAsia Next, in the United States by the end of 2026, reviving a plan that was called off two years ago.

Tony Fernandes also stated that the listing plans for Capital A and AirAsia Next were dependent on the group’s exit from PN17 classification, a tag given by Malaysia’s stock exchange to financially distressed companies.

Capital A has been classified as PN17 since 2022, after incurring massive losses due to COVID-19 pandemic-related disruptions.

“We just need to submit our audited accounts (to the stock exchange). I don’t want to jump the gun, but that’s the last thing we have (to do),” Tony Fernandes concluded.

The post Capital A names Effendy Shahul Hamid as its Deputy CEO appeared first on International Finance.

Bank of Montreal, the third-largest Canadian bank by market value, said in October that it would sell 138 branches to First Citizens Bank, apart from reinvesting in markets with stronger client engagement and longer-term growth prospects.

Bank of Montreal’s latest move comes amid some of the biggest American banking players investing in building branches in affluent areas to attract more clients, earn consumer trust and provide higher-value services such as mortgage services and wealth management. In 2023, Bank of Montreal bought BNP Paribas’ US unit, Bank of the West, for USD 16.3 billion. This was the BMO’s largest deal to date, giving it access to nearly two million customers, about 500 retail branches, and commercial and wealth offices in the Midwest and Western United States.

“The bank plans to open three new financial centres in Greater Los Angeles in 2026, two in the Bay Area and two in San Diego, which will create hundreds of jobs and expand access to in-person and advice-led banking,” the lender said in its media note.

Bank of Montreal has over 220 financial centres in California, and the planned expansions would add more than 50% to its footprint in the American state. Shares of BMO have returned a little over 7% so far in 2026, ahead of its larger peer, Royal Bank of Canada.

Meanwhile, BMO is navigating a more volatile North American rate environment while doubling down on expansion and capital discipline in the United States. For global investors, BMO offers a diversified North American banking franchise with exposure to cross-border trade, wealth management, and capital markets, but faces risks like cyclical credit and regulations.

The post Bank of Montreal to open around 150 financial centres in United States appeared first on International Finance.

“Takaichi may seek the BOJ’s help in keeping yen from falling in check, as the fact that Washington conducted rate checks to prop up the yen last month signals its preference for the currency to strengthen against the dollar,” Makoto Sakurai remarked.

“Currency intervention has only a temporary effect in combating yen-selling pressure. The best way to counter a weak yen is for the BOJ to raise interest rates. A renewed yen slide would push up inflation through higher import costs and offset some of the downward pressure from government fuel subsidies,” said Makoto Sakurai, who reportedly retains close contact with the central bank’s incumbent policymakers.

“If the need to combat sharp yen falls emerges, the BOJ can justify raising rates as soon as March by pointing to prospects of strong wage growth in annual spring wage talks between companies and unions. It would make better sense to wait until April, but depending on yen moves, there’s a chance the BOJ could raise rates in March,” the former board member added.

Sakurai served as a BOJ board member from 2016 to 2021, the timeframe that saw the central bank shift its policy focus away from huge asset purchases toward controlling long-term interest rates through the introduction of bond yield control.

He stated that the BOJ may need to raise its policy rate twice in both 2026 and 2027, increasing it from the current 0.75% to 1.75%. This rate will neither cool nor overheat the Japanese economy.

“Hiking rates at a faster pace could hurt Japan’s banking system by increasing bankruptcies among small firms and hurting the balance sheets of regional lenders,” Makoto Sakurai added.

The year 2024 saw a massive change in the BOJ’s policy approach, with the central bank ending a decade-long massive stimulus programme, apart from raising rates several times, including in December, when it took its short-term policy rate to a 30-year high of 0.75%.

With inflation exceeding the BOJ’s 2% target for nearly four years, Governor Kazuo Ueda has signalled the apex institution’s readiness to keep raising rates if its economic projections materialise. The BOJ’s next policy meeting will be held on March 18-19, followed by the board meeting on April 27-28, during which it will also make fresh quarterly growth and inflation forecasts.

A weak yen has become both an economic and political headache for Japanese policymakers, with the phenomenon hurting households and retailers by pushing up imported fuel and food costs. Since Takaichi’s ascendancy as the country’s Prime Minister in October 2025, the currency has fallen about 8% against the dollar to an 18-month low of 159.45 in January. In fact, according to reports published in The Mainichi daily, one of Japan’s major newspapers, Takaichi, during her meeting with BOJ Governor Ueda in February, expressed “reservations” about additional interest rate hikes.

While there hasn’t been any proper clarification from either of the two personalities, the report signals potential friction over monetary policy that could complicate the BOJ’s coordination efforts with the newly strengthened administration. While Ueda described the meeting as a “general exchange of views on economic and financial developments,” apart from refuting rumours of the PM making specific monetary policy requests, Takaichi said that she hoped the central bank would work closely with the government to durably achieve its 2% inflation target, accompanied by wage gains.

According to the BOJ governor, when he met Takaichi in November 2025, she was told that the central bank was gradually raising interest rates to guide inflation smoothly toward its 2% target and ensure the economy achieves sustainable growth.

The post Ex-BOJ board member predicts central bank’s next move appeared first on International Finance.

The balance sheet growth comes amid the backdrop of listed Gulf banks report significant, record third-quarter profits. The combined net income for the period stood at USD 16.6 billion, an 11.6% increase from a year earlier, apart from marking a third consecutive quarterly increase, said a Kamco Invest report from December 2025, as credit conditions improved across the region.

Al-Budaiwi noted, “This path has been adopted by the GCC states as a steadfast approach and an unwavering commitment in all fields, especially within the monetary and banking sectors.”

While highlighting swift transformations in the world economy against a backdrop of successive political crises, the GCC Secretary-General remarked, “This necessitated enhancing the readiness of economic and monetary policies and taking measures to address these variables and mitigate their impacts.”

Talking about the 86th Meeting of the Committee of Central Bank Governors in Manama, the meeting was chaired by Central Bank of Bahrain Governor Khalid Ebrahim Humaidan and attended by his counterparts from across the six-member bloc.

During the event, Al-Budaiwi emphasised that GCC states have proven their ability to remain resilient and overcome various crises with efficiency and competence, making it imperative to enhance the responsiveness of economic and monetary policies and implement measures to address fluctuations.

Turning to the bloc’s standing on the world stage, Al-Budaiwi asserted that member nations have solidified their position as reliable international economic partners due to the robustness of their economies, along with factors like the stability of their fiscal and monetary policies and the effectiveness of their institutional structures. All these indicators now clearly confirm the strength and resilience of the banking and monetary sectors within the member states.

The post Gulf bank deposits hit USD 2.3 trillion, assets top USD 3.9 trillion as 2025 ends appeared first on International Finance.

Lowering long-term borrowing costs has evolved into a critical objective, yet the path forward bristles with contradictions and constraints. If the administration cannot successfully diminish market expectations for future Federal Reserve policy rates, it must pivot toward alternative strategies focused on reducing the “term premium,” that additional yield investors demand for holding long-term bonds instead of perpetually rolling over short-term securities.

Several technical approaches exist to address the term premium. The Treasury could expand its bond buyback programmes, restructure federal debt issuance to favour shorter maturities over longer-dated securities, and implement long-discussed modifications to banking regulations that might stimulate demand for government bonds. Theoretically, these measures could ease pressure on long-term rates by altering the supply-demand balance in the Treasury market.

Nevertheless, the effectiveness of these strategies appears questionable. Market participants have already tested or publicly discussed many of these adjustments over the preceding year. Bond traders have likely incorporated these prospective policy changes into their pricing calculations, signifying that the tools may have already exhausted substantial portions of their potential impact.

Throughout 2025, Treasury yields maintained relative stability despite numerous market shocks and disturbances, suggesting that conventional policy levers possess limited potency in the current environment.

The yield curve tells a revealing story about the administration’s dilemma. Long-term Treasury yields have demonstrated remarkable stubbornness in confronting concerns that would customarily propel borrowing costs upward.

Apprehensions about fiscal expansion, tariff escalations, overheated economic growth, and potential threats to Federal Reserve independence have all failed to push long-term rates conspicuously higher. Yet paradoxically, these identical yields have obstinately refused to descend meaningfully even as the Fed resumed its easing cycle in late 2024.

The numerical evidence illuminates this intractable reality. The 30-year Treasury yield currently hovers just above 4.8%, precisely where it stood when Donald Trump assumed office. The 10-year yield has contracted roughly 40 basis points, which might superficially resemble progress.

However, during this identical interval, estimates of the 10-year term premium have increased approximately 30 basis points to reach nearly 80 basis points. This arithmetic demonstrates that the decline in nominal yields has suffered nearly complete offset by an increase in the risk premium investors require for holding long-term government debt.

This market comportment elucidates the administration’s palpable impatience with the Federal Reserve’s calibration of interest rate reductions. Confronting circumscribed options to manipulate long-term borrowing costs through orthodox means, the administration appears to be canvassing every conceivable avenue to importune the central bank into more bellicose monetary accommodation.

The objective revolves around compelling faster and more trenchant rate diminutions that might finally vanquish the long-term yields that predominate for mortgages and other consumer borrowing.

Political meddling in Federal Reserve policymaking, already perceptible in recent days, may constitute an emerging ramification of this exasperation. However, substantial uncertainty persists whether hectoring the Fed to eviscerate rates more pugnaciously, or subverting the central bank’s institutional autonomy, will genuinely consummate the coveted outcome of depressed long-term Treasury yields.

The mathematics of monetary policy presents a fundamental conundrum. Precipitous interest rate reductions would instantaneously impact short-term rates, furnishing the administration with a political shibboleth. Yet the reverberations on long-term debt could prove deleterious.

If aggressive rate curtailments overheat an economy already operating at elevated temperatures, the term premium embedded in long-term bonds would likely distend further. Investors would exact even heftier compensation for the amplified inflation jeopardy and economic turbulence that premature or immoderate easing might catalyse.

Inflation remains recalcitrantly elevated above the Federal Reserve’s target, and a durable reversion to price stability has proven maddeningly elusive. Aggressive rate reductions in this milieu risk reigniting inflationary conflagrations rather than extinguishing them.

Market participants have already commenced contemplating scenarios where the Fed might necessitate reversing course and constricting monetary policy anew to countervail a potential resurgence in inflation. This prospect alone could perpetuate elevated term premiums irrespective of metamorphoses in short-term policy rates.

The ramifications for the administration’s reported fascination with mortgage market interventions prove particularly ominous. Any initiative to depress mortgage rates by manipulating Treasury yields or badgering the Fed would likely founder on these fundamental contradictions.

If long-term yields remain stubbornly elevated despite aggressive Fed accommodation, or worse yet, if they ascend due to inflation trepidations, then endeavours to render homeownership more accessible through attenuated mortgage rates would simply disintegrate.

The administration discovers itself ensnared between competing objectives and shackled by market realities that refuse to genuflect to political pressure. The holy grail of suppressed Treasury yields may remain perpetually beyond grasp, not from deficiency of effort or ingenious policy formulations, but because the underlying economic fundamentals and the labyrinthine complexity of bond markets resist the oversimplified solutions political expediency mandates.

The post IF Insights: Donald Trump’s mortgage ambitions clash with treasury reality appeared first on International Finance.

“We predict that Qatar’s North Field Expansion project will boost LNG production by roughly 32% by 2027 and contribute to stronger real GDP growth of an average of 5% in 2026-2028, up from 2.7% growth in 2024-2025,” the report stated.

“Government revenue and the non-hydrocarbon economy are expected to benefit from increased LNG production. But we anticipate lending growth to stay at about 4% to 5%,” S&P Global Ratings noted.

High-risk cyclical industries, such as real estate, real estate rental services, hotels, contractors, commercial agencies and investment firms have seen a comparatively concentrated increase in lending in recent years. These industries make up somewhat less than half of all domestic loans.

The real estate market in Qatar is making a modest comeback. According to data released by the Real Estate Regulatory Authority, the total number of properties and units sold in 2025 rose by almost 51% year over year. Strong demand in the residential housing market in strategic Doha neighbourhoods was the primary cause of this. Regulatory changes like the new “Qatar Residency by Investment” programme, which grants long-term residency to foreigners who make commercial or real estate investments, help to sustain the current recovery.

In the first three quarters of 2025, the hotel business gradually recovered, with tourist arrivals up 2% year over year, mostly from Gulf nations. According to the S&P Global Ratings report, “We expect the estimated systemwide average non-performing loan ratio to decline to about 3.4% in 2026-2027, down from an estimated 3.7% in 2024-2025, supported by the stable asset quality of the two largest banks, the Qatar National Bank (QNB) and Qatar Islamic Bank (QIB).”

The report concluded, “We anticipate that the number of new non-performing loans will be low while the real estate industry continues to function better. However, several mid-sized banks will have substantial Stage 2 loan risk due to historical real estate holdings.”

There is also an anticipation that a mix of recoveries and write-offs, as well as interest rate reductions and precautionary provisions booked during the previous several years, will help stabilise asset quality. According to our estimates, the systemwide coverage ratio was around 128% as of September 30, 2025, and it will continue to be higher than 100% in 2026-2027.

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