(Alliance News) - The City watchdog has launched criminal proceedings against taxpayer-backed lender NatWest Group for alleged failures under money laundering rules, PA reported Tuesday.
The Financial Conduct Authority alleges that "increasingly large cash deposits" were made into a NatWest customer's account, with around GBP365 million paid in – of which some GBP264 million was in cash.
It claims that NatWest's systems and controls failed to properly monitor and scrutinise this activity, which took place between November 11 2011 and October 19 2016.
NatWest is due to appear at Westminster Magistrates' Court on April 14.
It marks the first time the FCA has launched criminal prosecution under the money laundering regulations and the first time the rules have been used to prosecute a bank.
The FCA said the money laundering rules require firms to "determine, conduct and demonstrate risk sensitive due diligence and ongoing monitoring of its relationships with its customers for the purposes of preventing money laundering".
No individuals are being charged as part of the proceedings.
NatWest shares were down 0.8% early Tuesday.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 0.5% at 6,784.44
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Hang Seng: up 0.7% at 29,020.58
Nikkei 225: closed up 0.5% at 29,921.09
DJIA: closed up 174.82 points, 0.5%, at 32,953.46
S&P 500: closed up 0.7% at 3,968.94
Nasdaq Composite: closed up 1.1% at 13,459.71
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EUR: down at USD1.1922 (USD1.1931)
GBP: down at USD1.3832 (USD1.3885)
USD: up at JPY109.21 (JPY109.08)
Gold: down at USD1,728.85 per ounce (USD1,730.28)
Oil (Brent): down at USD68.23 a barrel (USD68.70)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Tuesday's Key Economic Events still to come
US Federal Open Market Committee meeting starts
1100 CET Germany ZEW Indicator
0830 EDT US import & export price indexes
0830 EDT US retail sales
0855 EDT US Johnson Redbook retail sales index
0915 EDT US industrial production
1000 EDT US NAHB housing market index
1630 EDT US API Weekly statistical bulletin
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US and Japanese foreign and defence ministers warned on China, saying they had renewed a commitment to opposing "coercion and destabilising behaviour," during talks in Tokyo. "The US and Japan acknowledged that China's behaviour, where inconsistent with the existing international order, presents political, economic, military and technological challenges," they said in a joint statement on Tuesday. "The ministers committed to opposing coercion and destabilising behaviour towards others in the region," they added.
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BROKER RATING CHANGES
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JEFFERIES RAISES ASTRAZENECA TO 'BUY' (HOLD) - PRICE TARGET 8850 (8250) PENCE
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CREDIT SUISSE RAISES NATWEST TO 'OUTPERFORM' ('NEUTRAL') - TARGET 230 (170) P
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CREDIT SUISSE RAISES HSBC TO 'NEUTRAL' (UNDERPERFORM) - PRICE TARGET 440 (400) PENCE
CREDIT SUISSE RAISES BARCLAYS TO 'OUTPERFORM' (NEUTRAL) - PRICE TARGET 210 (155) PENCE
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BERENBERG INITIATES B&M EUROPEAN VALUE RETAIL WITH 'BUY' - TARGET 600 PENCE
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COMPANIES - FTSE 100
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AstraZeneca said it has modified an existing agreement with the US government to supply up to 500,000 additional doses of AZD7442, a long-acting antibody combination which is in late-stage development for the prevention and treatment of Covid-19. The Anglo-Swedish drugmaker said the new US government deal builds on earlier deals for a total of 200,000 doses with the US Department of Health & Human Service and Department of Defense. The value of the extended agreement is USD205 million and is contingent on AZD7442 receiving and Emergency Use Authorisation from the US Food & Drug Administration. AstraZeneca said the total value of current agreements with the US government for the development and supply of AZD7442 in 2021 is about USD726 million. The extended agreement is not anticipated to effect the company's financial guidance for 2021.
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AstraZeneca also said it has completed the sale of its 27% stake in Viela Bio Inc to Horizon Therapeutics. It will receive USD775 million in cash proceeds and profit from the Viela stake sale, but this also isn't expected to affect its guidance for 2021.
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Chilean copper miner Antofagasta hiked its dividend as it reported positive annual results and a strengthened balance sheet. For 2020, revenue was up 3.3% to USD5.13 billion from USD4.94 billion in 2019. Pretax profit was USD1.41 billion, up 4.4% from USD1.35 billion. Earnings before interest, tax, depreciation and amortisation rose 12% to USD2.74 billion in 2020 from USD2.44 billion the year prior. The miner declared a final dividend of 48.5 cents per share, bringing the total dividend for the year to 54.7 cents per share, up from 17.8 cents in 2019. Chief Executive Ivan Arriagada said: "The year has been challenging, but we have successfully kept our people safe and healthy, achieved our production and exceeded our cost targets, and increased Ebitda by 12.3% to USD2.7 billion, yielding a 53% Ebitda margin...Our resilient operations performed well with high levels of throughput and our Cost & Competitiveness Programme delivered benefits of USD197 million, nearly double the targeted amount. Our balance sheet strengthened even further." Antofagasta said it had USD82 million in net debt at the end of 2020, for a net debt to Ebitda ratio of just 0.03 times.
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Plumbing and heating products supplier Ferguson said it delivered good top-line growth in the first half of its financial year and despite "challenging personal and professional" circumstances. For the half year ended January 31, revenue was up 4.2% to USD10.31 billion from USD9.89 billion at the same time the year before, and pretax profit rose 18% to USD739 million from USD628 million. Ferguson declared an interim dividend of 72.9 US cents, having paid out nothing the year before and said that now the disposal of its UK side has completed, a special dividend of 180 cents per share will be paid in May. It also announced a new USD400 million share buy back scheme. Ferguson completed the GBP308 million sale of heating & plumbing distribution business Wolseley UK to US private equity firm Clayton, Dubilier & Rice at the start of February.
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COMPANIES - FTSE 250
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Stockbroker AJ Bell confirmed it has picked Helena Morrissey as its next chair. Morrissey will join the AJ Bell board as chair designate on July 1 and succeed Les Platts as chair at the next annual general meeting in January next year. Morrissey will step down as a non-executive director of wealth manager St James's Place on July 1 "to avoid any potential conflict of interest", St James's Place said. Morrissey was head of Personal Investing at Legal & General Investment Management and prior to that chief executive of Newton Investment Management.
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COMPANIES - GLOBAL
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Credit Suisse confirmed that it has made "a strong start" to 2021, achieving the highest level of pretax income in both January and February in a decade. The Swiss bank said its Investment Bank division is benefiting from a "particularly strong" performance in capital markets issuance activity and from a continued "good" performance across sales & trading. Investment Bank year-to-date revenue is up over 50% compared to the prior year, Credit Suisse noted. It also reported increased client activity year-on-year, which was boosting all of its three Wealth Management-related businesses, while net interest income was also stabilising and recurring commissions and fees continued to trend up. "Notwithstanding the continued Covid-19 pandemic, our credit loss experience remains benign, with signs of improvement in the global economy beginning to benefit allowance for credit losses under the current expected credit loss accounting methodology," said Chief Executive Thomas Gottstein. Turning to the suspension and liquidation of the supply chain finance funds - with net asset value of USD10 billion - managed by Credit Suisse Asset Management with assets originated and structured by Greensill Capital, Credit Suisse said its priority remains the recovery of funds for its investors.
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Tuesday's Shareholder Meetings
Blackrock Energy & Resources Income Trust PLC - AGM
Blue Prism Group PLC - AGM
Plus500 Ltd - EGM
Starvest PLC - AGM
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By Tom Waite; thomaslwaite@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
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