Regulatory changes have increased costs for both banks and their corporate customers. For banks, costs have risen due to regulations like the Volcker Rule, Basel III capital requirements, and the Durbin Amendment which have reduced revenue streams. Banks are also urging some large customers to remove deposits due to new regulations making some deposits less profitable. For corporate customers, costs have increased both from higher fees charged by banks to comply with regulations, and from reforms to money market funds that have lowered yields. Looking forward, further rate hikes could exacerbate these issues as the repeal of Regulation Q and money fund reforms reduce the value of deposits for banks and corporations.
The document discusses changing dynamics in corporate liquidity and short-term funding markets over the next 18 months. It notes that bank regulation will likely constrain bank balance sheets and shift the supply of short-term funding. Demand for short-term assets is expected to remain strong given improving corporate balance sheets and liquidity regulations. Regulation will impact both the supply and demand dynamics in short-term markets.
Recent Developments in Global Financial Markets: Impact on TurkeyEren Ocakverdi
A concise background regarding the recent financial and regulatory developments in Europe and Turkey were provided from a practitioner’s point of view.
A stream of new money flowing into loan and credit funds overwhelmed new issue supply, providing issuers (and their agents) the opportunity to run robust offering processes and gamer attractive economic and structural terms. The recent tightening in monetary policy and strong macroeconomic conditions notwithstanding, all-in-cost of leverage has, thus far, remained near recent lows.
This document discusses the major components of stress testing processes required by regulators. It covers economic scenarios, cash flow models, new business plans, capital consumption models, income/expense models, and capital ratios. Accurately modeling cash flows is challenging, as separate risk functions make aggregation difficult. Regulators expect banks to use competing risk models to simultaneously consider multiple risk factors. Data and model limitations remain issues for banks to address.
- Interest rates rose in April for both taxable and tax-exempt bonds, with tax-exempt municipal bonds rising an average of 11 basis points compared to a 13 basis point rise for taxable U.S. Treasuries.
- While rates have increased this year, municipal bonds remain attractive compared to more volatile U.S. Treasuries and continue to offer yields above 85% of Treasuries on a 10, 20, and 30 year basis.
- Refundings have driven strong municipal bond issuance in 2015, with over $144 billion issued through April, a 58% increase over the same period last year, though bond fund outflows in mid-April weakened demand.
3Q 2013 Unconsolidated Earnings Presentation Garanti Bank
The document provides an earnings presentation for BRSA Bank-only financials for 9M 2013. Some key highlights include:
- Margins were temporarily suppressed in 3Q due to a 100 bps increase in deposit costs, but core banking profitability remained strong.
- Retail loans, particularly mortgages, general purpose loans, and credit cards continued to drive growth, while overall lending growth was seasonally slower.
- Securities holdings declined as additions fell short of offsetting redemptions and maturities. The portfolio remains focused on floating rate notes and CPI-linked bonds.
- Solid market shares were maintained in payment systems, which provide sustainable fee and commission income.
Brink's equity investor presentation december 2017 finalinvestorsbrinks
This document provides an investor presentation for Brink's, a global security and logistics company. It summarizes Brink's key investment highlights, including its leadership position in the cash management industry, strong new leadership, demonstrated results, global footprint, and growth strategy. Brink's strategic plan focuses on accelerating profitable growth through initiatives to improve operational excellence, introduce differentiated services, and pursue core and adjacent acquisitions to capture synergies and improve density. Financial targets through 2019 project increased adjusted EBITDA and decreasing leverage. Recent acquisitions are expected to contribute to growth.
Highlights of recent trends in financial marketsRajendar Madasi
Financial markets have broadly strengthened after weakening in late 2005. Stock markets grew strongly in Japan and Europe, backed by both foreign and domestic demand. The financial sector outperformed in Europe, with banks and insurers rebounding from hurricane losses. Corporate bond spreads remained stable in the US and Europe.
The document discusses changing dynamics in corporate liquidity and short-term funding markets over the next 18 months. It notes that bank regulation will likely constrain bank balance sheets and shift the supply of short-term funding. Demand for short-term assets is expected to remain strong given improving corporate balance sheets and liquidity regulations. Regulation will impact both the supply and demand dynamics in short-term markets.
Recent Developments in Global Financial Markets: Impact on TurkeyEren Ocakverdi
A concise background regarding the recent financial and regulatory developments in Europe and Turkey were provided from a practitioner’s point of view.
A stream of new money flowing into loan and credit funds overwhelmed new issue supply, providing issuers (and their agents) the opportunity to run robust offering processes and gamer attractive economic and structural terms. The recent tightening in monetary policy and strong macroeconomic conditions notwithstanding, all-in-cost of leverage has, thus far, remained near recent lows.
This document discusses the major components of stress testing processes required by regulators. It covers economic scenarios, cash flow models, new business plans, capital consumption models, income/expense models, and capital ratios. Accurately modeling cash flows is challenging, as separate risk functions make aggregation difficult. Regulators expect banks to use competing risk models to simultaneously consider multiple risk factors. Data and model limitations remain issues for banks to address.
- Interest rates rose in April for both taxable and tax-exempt bonds, with tax-exempt municipal bonds rising an average of 11 basis points compared to a 13 basis point rise for taxable U.S. Treasuries.
- While rates have increased this year, municipal bonds remain attractive compared to more volatile U.S. Treasuries and continue to offer yields above 85% of Treasuries on a 10, 20, and 30 year basis.
- Refundings have driven strong municipal bond issuance in 2015, with over $144 billion issued through April, a 58% increase over the same period last year, though bond fund outflows in mid-April weakened demand.
3Q 2013 Unconsolidated Earnings Presentation Garanti Bank
The document provides an earnings presentation for BRSA Bank-only financials for 9M 2013. Some key highlights include:
- Margins were temporarily suppressed in 3Q due to a 100 bps increase in deposit costs, but core banking profitability remained strong.
- Retail loans, particularly mortgages, general purpose loans, and credit cards continued to drive growth, while overall lending growth was seasonally slower.
- Securities holdings declined as additions fell short of offsetting redemptions and maturities. The portfolio remains focused on floating rate notes and CPI-linked bonds.
- Solid market shares were maintained in payment systems, which provide sustainable fee and commission income.
Brink's equity investor presentation december 2017 finalinvestorsbrinks
This document provides an investor presentation for Brink's, a global security and logistics company. It summarizes Brink's key investment highlights, including its leadership position in the cash management industry, strong new leadership, demonstrated results, global footprint, and growth strategy. Brink's strategic plan focuses on accelerating profitable growth through initiatives to improve operational excellence, introduce differentiated services, and pursue core and adjacent acquisitions to capture synergies and improve density. Financial targets through 2019 project increased adjusted EBITDA and decreasing leverage. Recent acquisitions are expected to contribute to growth.
Highlights of recent trends in financial marketsRajendar Madasi
Financial markets have broadly strengthened after weakening in late 2005. Stock markets grew strongly in Japan and Europe, backed by both foreign and domestic demand. The financial sector outperformed in Europe, with banks and insurers rebounding from hurricane losses. Corporate bond spreads remained stable in the US and Europe.
The fund returned -10.8% in February, underperforming its benchmark. The short equity book and long equity book both made negative contributions after currency hedging. Within the short book, negative contributions came from Anglo American, Las Vegas Sands, and Royal Dutch Shell. Within the long book, negative contributions came from Nokia, Sky, and Bank of America. Elsewhere, active currencies returned -0.4% while government bonds and commodities returned +0.1% and +1.4% respectively. The manager remains convinced markets will continue to struggle without credit expansion and believes central banks have limited options to address slowing growth and falling productivity.
BoyarMiller Breakfast Forum: The Current State of the Capital Markets 2010BoyarMiller
This document summarizes a presentation on the current state of the capital markets given on September 10, 2010. It discusses 2010 market performance data for various asset classes. It then covers topics like the end of the recession, unemployment, credit availability, the housing market, government stimulus, and earnings estimates. The presentation outlines risks in 2010 like the withdrawal of stimulus, China slowing, and debt issues. It recommends investment strategies focused on capital preservation and diversification. Charts on interest rates, government and consumer debt, and corporate cash levels are also included. The next sections will cover private equity, debt markets, mergers and acquisitions, and conclusions.
This document provides an overview of TCF Financial Corporation's Specialty Finance Group. Some key details:
- TCF is a $18 billion financial holding company headquartered in Minnesota and is the 34th largest U.S. bank by assets.
- It has a diverse portfolio including lending, leasing, inventory financing and deposit services.
- TCF emphasizes credit quality over growth and has no subprime exposures or risky assets.
- It has experienced stable growth across its businesses while maintaining strong credit quality metrics relative to peers.
This document provides a forecast for 30-year fixed conventional mortgage rates from July 2010 to November 2010. It describes the mortgage banking industry and how mortgage rates are determined by 10-year US Treasury yields. Regression analysis was used to estimate a model that accounts for 99% of variability in mortgage rates based on Treasury yields. The model forecasts rates to increase slightly from 4.75% in July to 4.78% in November. The document recommends encouraging home buyers to purchase before costs increase.
This document provides an earnings presentation summary for 1H 2013. Some key points:
- Global economic growth was mixed with volatility due to the Fed tapering stimulus, while the Eurozone remained stagnant. Emerging markets faced weakness.
- The bank pursued profitable lending growth, especially in mortgages, general purpose loans, and auto loans. Total loans grew 10% in 2Q.
- Net income grew 37% year-over-year to TL1.8 billion for 1H13, with a ROAE of 21.2% and ROAA of 2.6%. Fees and commissions were the top revenue driver.
- The bank maintained solid capital and liquidity positions with a Basel II CAR of
Bladex's presentation outlines its positioning for growth opportunities in a post-Covid environment. Key points include:
1) Bladex has a differentiated balance sheet structure and the Latin American region is showing recovery, uniquely positioning Bladex to leverage new business opportunities.
2) Global and Latin American economic indicators show an optimistic outlook for 2021, with commodity prices and trade expected to support regional growth.
3) Bladex has enhanced its product offerings to address specific client needs through longer tenors, guarantee structures, and supply chain financing partnerships.
4) Internally, Bladex has undertaken strategic planning coordination to effectively align the bank for future opportunities in trade finance and corporate banking.
4Q 2013 Consolidated Earnings PresentationGaranti Bank
Garanti Bank reported strong performance in 2013 despite challenging market conditions. The first half saw significant capital inflows to Turkey but the second half saw a sharp contraction due to global factors. Garanti maintained above-budget lending growth with sound asset quality, sustained strong capitalization, and increasing core banking revenues. Key highlights included above-sector loan growth led by consumer loans, a securities portfolio hedged against volatility, low non-performing loans, and comfortable liquidity supported by deposits.
This report forecasts 30-year fixed conventional mortgage rates from July 2010 to November 2010 using a regression model. The regression model finds that mortgage rates have a negative trend over time and are positively correlated with nominal 10-year U.S. Treasury security yields. The model forecasts mortgage rates to increase slightly from 4.74% in June 2010 to 4.78% in November 2010. The report recommends encouraging home buyers to purchase homes now before mortgage rates increase further.
The document discusses the policy challenges facing Asian economies from global liquidity infusion. It summarizes the magnitude and impact of capital flows into the Philippines, including the BSP's policy responses. While an early unwinding of quantitative easing could cause volatility, the Philippine economy has shown resilience due to strong growth, prudent policies, and adequate buffers. Overall, the economy has managed risks from capital flows well and has policy flexibility to navigate potential turbulence.
Mercer Capital's Atlantic Coast Bank Watch | August 2013Mercer Capital
The August 2013 issue of Bank Watch is available now at www.mercercapital.com, and features articles by Jeff Davis, Madeleine Davis, and the announcement of an upcoming webinar on the recently finalized capital rules.
This document provides an annual asset allocation review and recommendations. It summarizes the poor performance of global equity markets in 2008 and widening of credit spreads. Due to low cash yields, the recommended allocations for the "Income & Growth" and "Growth" profiles were changed to shift assets from cash to bonds. Global diversification is still recommended to enhance long-term risk-adjusted returns. The outlook is that credit spreads may narrow in 2009 as monetary and fiscal stimulus takes effect, which would be positive for equity markets.
The document summarizes the China Economic Observer (CEO) Quarterly symposium led by experts from the China Center for Economic Research (CCER) at Peking University. It discusses the Langrun Forecast which projects China's macroeconomic indicators and is released at each symposium. Over 20 institutions now participate in the forecasting. The document also reviews projections of when China's economy will surpass the US, finding earlier projections of 2041 likely too conservative and revising the projection to the early 2020s. It notes China will still be relatively poor compared to the US and faces challenges in reforms.
The Federal Reserve System uses three main tools of monetary policy: open market operations, reserve requirements, and the discount rate. Open market operations, through which the Fed buys and sells government bonds, are the most important tool as they allow the Fed to quickly adjust bank reserves. By expanding or contracting bank reserves through open market operations, the Fed can lower or raise interest rates, stimulating or slowing investment and economic growth. The goal of monetary policy is to achieve full employment and price stability.
Economic Prospects Challenges And Opportunities Lloyds Tsb Trevor WilliamsRoberto Grossi
The document summarizes the key economic challenges and opportunities facing the global economy in 2008. It identifies the credit crisis and rising inflation as the two main themes. The credit crisis stems from the bursting of the asset price bubble in the early 2000s, while rising inflation is due to strong global growth pushing up commodity demand. The implications are likely slower growth in developed economies, rising corporate insolvencies, and tighter monetary policy. Emerging markets will continue outperforming but face risks from high inflation.
Session by Rolf Alter, Director, OECD Public Governance and Territorial Development
Money plays a role both as a channel for citizens to support their candidates or political parties, and as a means for candidates and political parties to reach out to their constituencies. Access to resources for political parties and candidates also shapes political competition. Parliamentarians have an important stake in advancing the global debate on the role of money in politics. There are still many loopholes in political party funding regulations that are open to exploitation by powerful special interests. Loans, membership fees, and third party funding are all used to circumvent spending limits and other regulations. Many countries struggle to define and regulate third-party campaigning leaving them ill-equipped to prevent the channelling of election spending through supposedly independent committees and interest groups. Only a handful of countries have regulations in place for third-party campaigning and globalisation is complicating the regulation of private funding of political parties as foreign companies and wealthy individuals are often deeply integrated with domestic business interests. This OECD report finds that 29% of OECD countries have an independent electoral management body and there is no one-size-fits all model. But whatever the structure, the institutions responsible for enforcing political finance regulations should have a clear mandate, legal power and the capacity to deal with large volumes of work. While data clearly shows that sanctions are effective in improving compliance with the rules, many countries struggle to ensure sanctions that are both proportionate and dissuasive. One clear-cut lesson is that ensuring the effective implementation of political finance regulations still remains challenging in many countries. The Framework on Financing Democracy presented in this report shapes the global debate on risks and policy options, and provides tangible advice for the funding of political parties and electoral campaigns. The report also features detailed case studies of Canada, Chile, Estonia, France, Korea, Mexico, United Kingdom, Brazil and India.
S.Y. Bancorp is a bank holding company that owns Stock Yards Bank & Trust. The presentation provides an overview of SYBT's financial performance over the past three years and first quarter of 2013, with net income and earnings per share increasing. It also outlines SYBT's business model, which includes a significant investment management operation, and its strategy for continued growth in the Louisville, Indianapolis and Cincinnati markets. The presentation highlights SYBT's consistent financial results, experienced management team, and strong capital levels as advantages for investors.
- Community Bank System reported net income of $10.5 million for the first quarter of 2009, a 4.0% decrease from the first quarter of 2008. Earnings per share were $0.32, down 11.1% from $0.36 in the first quarter of 2008.
- Net interest income grew 12.9% to $40.2 million due to loan and deposit growth from acquisitions and organic growth. However, additional operating costs from acquisitions and higher FDIC insurance assessments reduced earnings.
- Asset quality remained stable with nonperforming loans at 0.49% of total loans and net charge-offs of 0.30%, reflecting the bank's disciplined underwriting
BRSA Bank-Only Earnings Presentation, December 31, 2011 Garanti Bank
Garanti Bank announced its unconsolidated financial statements dated December 31st, 2011. In 2011, the Bank reached total assets of TL 146.6 billion and net profit of TL 3 billion 70 million. Garanti Bank delivered an ROAE (Return on Average Equity) of 18.2% and ROAA (Return on Average Assets) of 2.2%.
Updated JSC Liberty Finance Factsheet - June 2015 Monthly Performance: 0.99% in GEL and 3.71% in US$. Cumulative performance for 2015: 40.04% in GEL and 11.79% in US$
This document provides an overview of HollyFrontier Corporation and Holly Energy Partners. Key points include:
- HollyFrontier is a pure play inland refining company with 443,000 barrels per day of crude capacity located near North American crude production.
- Its collaboration with Holly Energy Partners provides strategic growth opportunities in logistics and marketing operations.
- Both companies maintain investment grade credit ratings and have access to sizable credit facilities.
- HollyFrontier focuses on refining while Holly Energy Partners focuses on logistics and transportation. Their collaboration allows them to leverage complementary assets and operations.
The Lead Left Quarterly Capital Market Report 4Q 2015The Lead Left
The document provides a quarterly review and outlook of the capital markets in Q4 2015 and Q1 2016. Key points covered include:
- High yield bond and leveraged loan issuance volumes declined in 2015 from the previous year due to market volatility and outflows from loan funds.
- Middle market sponsor leveraged loan volume was also down while private credit funds continued investing opportunistically.
- Institutional investors held more cash while banks reduced underwriting of highly leveraged transactions due to regulatory pressures.
The fund returned -10.8% in February, underperforming its benchmark. The short equity book and long equity book both made negative contributions after currency hedging. Within the short book, negative contributions came from Anglo American, Las Vegas Sands, and Royal Dutch Shell. Within the long book, negative contributions came from Nokia, Sky, and Bank of America. Elsewhere, active currencies returned -0.4% while government bonds and commodities returned +0.1% and +1.4% respectively. The manager remains convinced markets will continue to struggle without credit expansion and believes central banks have limited options to address slowing growth and falling productivity.
BoyarMiller Breakfast Forum: The Current State of the Capital Markets 2010BoyarMiller
This document summarizes a presentation on the current state of the capital markets given on September 10, 2010. It discusses 2010 market performance data for various asset classes. It then covers topics like the end of the recession, unemployment, credit availability, the housing market, government stimulus, and earnings estimates. The presentation outlines risks in 2010 like the withdrawal of stimulus, China slowing, and debt issues. It recommends investment strategies focused on capital preservation and diversification. Charts on interest rates, government and consumer debt, and corporate cash levels are also included. The next sections will cover private equity, debt markets, mergers and acquisitions, and conclusions.
This document provides an overview of TCF Financial Corporation's Specialty Finance Group. Some key details:
- TCF is a $18 billion financial holding company headquartered in Minnesota and is the 34th largest U.S. bank by assets.
- It has a diverse portfolio including lending, leasing, inventory financing and deposit services.
- TCF emphasizes credit quality over growth and has no subprime exposures or risky assets.
- It has experienced stable growth across its businesses while maintaining strong credit quality metrics relative to peers.
This document provides a forecast for 30-year fixed conventional mortgage rates from July 2010 to November 2010. It describes the mortgage banking industry and how mortgage rates are determined by 10-year US Treasury yields. Regression analysis was used to estimate a model that accounts for 99% of variability in mortgage rates based on Treasury yields. The model forecasts rates to increase slightly from 4.75% in July to 4.78% in November. The document recommends encouraging home buyers to purchase before costs increase.
This document provides an earnings presentation summary for 1H 2013. Some key points:
- Global economic growth was mixed with volatility due to the Fed tapering stimulus, while the Eurozone remained stagnant. Emerging markets faced weakness.
- The bank pursued profitable lending growth, especially in mortgages, general purpose loans, and auto loans. Total loans grew 10% in 2Q.
- Net income grew 37% year-over-year to TL1.8 billion for 1H13, with a ROAE of 21.2% and ROAA of 2.6%. Fees and commissions were the top revenue driver.
- The bank maintained solid capital and liquidity positions with a Basel II CAR of
Bladex's presentation outlines its positioning for growth opportunities in a post-Covid environment. Key points include:
1) Bladex has a differentiated balance sheet structure and the Latin American region is showing recovery, uniquely positioning Bladex to leverage new business opportunities.
2) Global and Latin American economic indicators show an optimistic outlook for 2021, with commodity prices and trade expected to support regional growth.
3) Bladex has enhanced its product offerings to address specific client needs through longer tenors, guarantee structures, and supply chain financing partnerships.
4) Internally, Bladex has undertaken strategic planning coordination to effectively align the bank for future opportunities in trade finance and corporate banking.
4Q 2013 Consolidated Earnings PresentationGaranti Bank
Garanti Bank reported strong performance in 2013 despite challenging market conditions. The first half saw significant capital inflows to Turkey but the second half saw a sharp contraction due to global factors. Garanti maintained above-budget lending growth with sound asset quality, sustained strong capitalization, and increasing core banking revenues. Key highlights included above-sector loan growth led by consumer loans, a securities portfolio hedged against volatility, low non-performing loans, and comfortable liquidity supported by deposits.
This report forecasts 30-year fixed conventional mortgage rates from July 2010 to November 2010 using a regression model. The regression model finds that mortgage rates have a negative trend over time and are positively correlated with nominal 10-year U.S. Treasury security yields. The model forecasts mortgage rates to increase slightly from 4.74% in June 2010 to 4.78% in November 2010. The report recommends encouraging home buyers to purchase homes now before mortgage rates increase further.
The document discusses the policy challenges facing Asian economies from global liquidity infusion. It summarizes the magnitude and impact of capital flows into the Philippines, including the BSP's policy responses. While an early unwinding of quantitative easing could cause volatility, the Philippine economy has shown resilience due to strong growth, prudent policies, and adequate buffers. Overall, the economy has managed risks from capital flows well and has policy flexibility to navigate potential turbulence.
Mercer Capital's Atlantic Coast Bank Watch | August 2013Mercer Capital
The August 2013 issue of Bank Watch is available now at www.mercercapital.com, and features articles by Jeff Davis, Madeleine Davis, and the announcement of an upcoming webinar on the recently finalized capital rules.
This document provides an annual asset allocation review and recommendations. It summarizes the poor performance of global equity markets in 2008 and widening of credit spreads. Due to low cash yields, the recommended allocations for the "Income & Growth" and "Growth" profiles were changed to shift assets from cash to bonds. Global diversification is still recommended to enhance long-term risk-adjusted returns. The outlook is that credit spreads may narrow in 2009 as monetary and fiscal stimulus takes effect, which would be positive for equity markets.
The document summarizes the China Economic Observer (CEO) Quarterly symposium led by experts from the China Center for Economic Research (CCER) at Peking University. It discusses the Langrun Forecast which projects China's macroeconomic indicators and is released at each symposium. Over 20 institutions now participate in the forecasting. The document also reviews projections of when China's economy will surpass the US, finding earlier projections of 2041 likely too conservative and revising the projection to the early 2020s. It notes China will still be relatively poor compared to the US and faces challenges in reforms.
The Federal Reserve System uses three main tools of monetary policy: open market operations, reserve requirements, and the discount rate. Open market operations, through which the Fed buys and sells government bonds, are the most important tool as they allow the Fed to quickly adjust bank reserves. By expanding or contracting bank reserves through open market operations, the Fed can lower or raise interest rates, stimulating or slowing investment and economic growth. The goal of monetary policy is to achieve full employment and price stability.
Economic Prospects Challenges And Opportunities Lloyds Tsb Trevor WilliamsRoberto Grossi
The document summarizes the key economic challenges and opportunities facing the global economy in 2008. It identifies the credit crisis and rising inflation as the two main themes. The credit crisis stems from the bursting of the asset price bubble in the early 2000s, while rising inflation is due to strong global growth pushing up commodity demand. The implications are likely slower growth in developed economies, rising corporate insolvencies, and tighter monetary policy. Emerging markets will continue outperforming but face risks from high inflation.
Session by Rolf Alter, Director, OECD Public Governance and Territorial Development
Money plays a role both as a channel for citizens to support their candidates or political parties, and as a means for candidates and political parties to reach out to their constituencies. Access to resources for political parties and candidates also shapes political competition. Parliamentarians have an important stake in advancing the global debate on the role of money in politics. There are still many loopholes in political party funding regulations that are open to exploitation by powerful special interests. Loans, membership fees, and third party funding are all used to circumvent spending limits and other regulations. Many countries struggle to define and regulate third-party campaigning leaving them ill-equipped to prevent the channelling of election spending through supposedly independent committees and interest groups. Only a handful of countries have regulations in place for third-party campaigning and globalisation is complicating the regulation of private funding of political parties as foreign companies and wealthy individuals are often deeply integrated with domestic business interests. This OECD report finds that 29% of OECD countries have an independent electoral management body and there is no one-size-fits all model. But whatever the structure, the institutions responsible for enforcing political finance regulations should have a clear mandate, legal power and the capacity to deal with large volumes of work. While data clearly shows that sanctions are effective in improving compliance with the rules, many countries struggle to ensure sanctions that are both proportionate and dissuasive. One clear-cut lesson is that ensuring the effective implementation of political finance regulations still remains challenging in many countries. The Framework on Financing Democracy presented in this report shapes the global debate on risks and policy options, and provides tangible advice for the funding of political parties and electoral campaigns. The report also features detailed case studies of Canada, Chile, Estonia, France, Korea, Mexico, United Kingdom, Brazil and India.
S.Y. Bancorp is a bank holding company that owns Stock Yards Bank & Trust. The presentation provides an overview of SYBT's financial performance over the past three years and first quarter of 2013, with net income and earnings per share increasing. It also outlines SYBT's business model, which includes a significant investment management operation, and its strategy for continued growth in the Louisville, Indianapolis and Cincinnati markets. The presentation highlights SYBT's consistent financial results, experienced management team, and strong capital levels as advantages for investors.
- Community Bank System reported net income of $10.5 million for the first quarter of 2009, a 4.0% decrease from the first quarter of 2008. Earnings per share were $0.32, down 11.1% from $0.36 in the first quarter of 2008.
- Net interest income grew 12.9% to $40.2 million due to loan and deposit growth from acquisitions and organic growth. However, additional operating costs from acquisitions and higher FDIC insurance assessments reduced earnings.
- Asset quality remained stable with nonperforming loans at 0.49% of total loans and net charge-offs of 0.30%, reflecting the bank's disciplined underwriting
BRSA Bank-Only Earnings Presentation, December 31, 2011 Garanti Bank
Garanti Bank announced its unconsolidated financial statements dated December 31st, 2011. In 2011, the Bank reached total assets of TL 146.6 billion and net profit of TL 3 billion 70 million. Garanti Bank delivered an ROAE (Return on Average Equity) of 18.2% and ROAA (Return on Average Assets) of 2.2%.
Updated JSC Liberty Finance Factsheet - June 2015 Monthly Performance: 0.99% in GEL and 3.71% in US$. Cumulative performance for 2015: 40.04% in GEL and 11.79% in US$
This document provides an overview of HollyFrontier Corporation and Holly Energy Partners. Key points include:
- HollyFrontier is a pure play inland refining company with 443,000 barrels per day of crude capacity located near North American crude production.
- Its collaboration with Holly Energy Partners provides strategic growth opportunities in logistics and marketing operations.
- Both companies maintain investment grade credit ratings and have access to sizable credit facilities.
- HollyFrontier focuses on refining while Holly Energy Partners focuses on logistics and transportation. Their collaboration allows them to leverage complementary assets and operations.
The Lead Left Quarterly Capital Market Report 4Q 2015The Lead Left
The document provides a quarterly review and outlook of the capital markets in Q4 2015 and Q1 2016. Key points covered include:
- High yield bond and leveraged loan issuance volumes declined in 2015 from the previous year due to market volatility and outflows from loan funds.
- Middle market sponsor leveraged loan volume was also down while private credit funds continued investing opportunistically.
- Institutional investors held more cash while banks reduced underwriting of highly leveraged transactions due to regulatory pressures.
Blx corporate presentation 1q17 bd conf london 3 4 may 17Bladex
1) Deutsche Bank held a conference in London on May 3-4, 2017 to discuss its Andean Region business.
2) The presentation included forward-looking statements and disclaimed risks and uncertainties that could impact Deutsche Bank's expectations.
3) Deutsche Bank has a leading franchise in the region with a solid track record, as demonstrated by various financial highlights provided from 2015 to the first quarter of 2017.
This corporate presentation by Banco Latinoamericano de Comercio Exterior, S.A. provides an overview of the bank and its business. Key points include:
- Banco Latinoamericano is the leading Latin American trade finance bank, providing integrated financial solutions across Latin America's foreign trade value chain. It has a unique shareholder structure of Latin American central banks.
- The bank has a strong track record, being the first Latin American bank listed on the NYSE and rated investment grade. It maintains investment-grade credit ratings from Moody's, Fitch, and S&P.
- The bank focuses on trade finance, working capital loans, and treasury services. It has a diversified
Capital Markets Insights – Late Fall 2018Duff & Phelps
What’s been an increase in growth and acquisition-related financings and recapitalization transactions? Read the fall edition of Duff&Phelps’ Capital Markets Insights.
Data Quality in the Banking Industry: Turning Regulatory Compliance into Busi...Precisely
During the last 15 years, regulatory requirements in financial services have grown substantially in order to reduce the risk of global, systemic economic failure. Quality data provided through effective data governance and data quality processes is central to achieving effective compliance reporting. Not only does data quality help ensure accurate reporting, but successful compliance significantly enhances other business decisions which rely on high quality data.
This webinar looks at the ramp up in reporting complexity, how successful compliance is linked to data governance and data quality, and how data quality helps empower financial institutions to make better decisions to increase revenue and decrease expense.
View this webinar on-demand for a discussion on:
• Tracing the background for regulatory reporting and key financial regulations
• Understanding how data quality helps institutions succeed with regulatory reporting compliance
• How regulatory reporting improves data for other business decisions
• How financial institutions leverage Trillium DQ to deliver quality data
Capital Markets Industry Insights - Fall 2016Duff & Phelps
Middle-market issuers were greeted by strong demand this quarter from mainstream credit sources as well as those seeking higher degrees of risk and return. Macroeconomic fundamentals continued to improve, though the focus remained on monetary policy. With an increasingly stark dichotomy of views at the Federal Reserve, volatility persisted in anticipation of clearer guidance on the pace and timing of rate hikes.
Planning for 2017: What Gets Measured Gets ManagedTomás Karagianes
According to several AFP surveys, almost 50% of Treasures have no metrics; yet, 2017 may prove to be one of the most challenging times when it comes to understanding how much liquidity is “enough” or how much risk is “too much”. If your organization is using “too many” spreadsheets, inundated by frequent reconciliations and consumption of scarce staff resources - this webinar will offer you timely ideas.
This document contains forward-looking statements about the Bank's performance and business outlook. It notes several factors that could cause actual results to differ from expectations, such as credit growth, interest rates, economic conditions, strategy execution, credit quality, and regulatory changes. It then provides an overview of the Bank, including its shareholder structure, ratings, business lines in financial intermediation, structuring, and treasury, regional focus in Latin America, and adherence to world-class governance and risk management standards.
Susquehanna Bancshares provides an investor presentation for the 3rd quarter of 2013. The presentation includes forward-looking statements and cautions investors that actual results may differ due to risks and uncertainties. It provides an overview of Susquehanna, including its market presence, financial information, and strategies to drive organic loan growth, defend its net interest margin, grow fee revenue, maintain efficiency, and accelerate capital generation and returns. Highlights from the 2nd quarter of 2013 include steady loan growth, continued focus on core deposit growth, strong profitability, and solid credit quality.
The document discusses several topics related to business and finance outlooks:
1) Major central banks are gradually shifting monetary policy towards normalization as economies strengthen.
2) Financial regulatory reforms in advanced economies and China are being implemented.
3) China is also reforming how it manages its financial system and economy to address high debt levels and vulnerabilities.
4) Infrastructure investment needs globally are large, and China's Belt and Road Initiative aims to help meet these needs through connectivity and cooperation projects."
Mercer Capital's Bank Watch | June 2022 | Bond Pain and Perspective on Bank V...Mercer Capital
Brought to you by the Financial Institutions Team of Mercer Capital, this monthly newsletter is focused on bank activity in five U.S. regions. Bank Watch highlights various banking metrics, including public market indicators, M&A market indicators, and key indices of the top financial institutions, providing insight into financial institution valuation issues.
- Smart Lenders Asset Management manages portfolios of consumer loans issued through online lending marketplaces in the US, targeting an annual return of 6.5-7.5% net of fees and defaults.
- They focus on prime borrowers and loans of short duration (around 18 months) to provide quality, security, and transparency for European investors.
- Online marketplace lending has grown significantly in recent years but still only accounts for a small portion of the overall US consumer lending market, representing an opportunity for further growth.
Feds decision implications for CRE 15 2015 perspective and analysisMatthew Marshall
This document summarizes economic projections from the Federal Reserve Board members and Bank presidents from December 2015. It projects modest GDP growth between 2.0-2.5% annually through 2018 and a gradual decline in the unemployment rate to around 4.7-5.0% through the longer run. Inflation is projected to be around 2.0% each year. The median projection shows the federal funds rate rising gradually to around 3.3-3.5% by 2018. Several charts show historical interest rates and inflation remaining low. The summary concludes that there is no guarantee long-term interest rates will rise significantly and that inflation is a more important indicator to watch than the federal funds rate.
The U.S. banking industry is overdue for consolidation as market structure is obsolete and profitability has been weak for a decade. Regulatory pressures and competition are making it hard for most banks to grow revenues and profits. Mid-tier banks with $10-250 billion in assets are expected to see significant consolidation through M&A to gain scale and lower costs. Consolidation can yield 30-35% cost savings by shedding excess capacity, spreading fixed costs over a larger base, and investing in digital capabilities. $600 billion in M&A among mid-tier banks is estimated to boost sector returns enough to reach banks' cost of capital.
Mercer Capital's Bank Watch | October 2020 | Low Rates and Tighter NIMs Spur ...Mercer Capital
Brought to you by the Financial Institutions Team of Mercer Capital, this monthly newsletter is focused on bank activity in five U.S. regions. Bank Watch highlights various banking metrics, including public market indicators, M&A market indicators, and key indices of the top financial institutions, providing insight into financial institution valuation issues.
2014.11.28 - NAEC Group Meeting_Adrian Blundell-WignallOECD_NAEC
The document discusses several issues related to finance and the economy. It notes that financial deregulation and innovation led to the 2008 liquidity crisis due to complex derivatives and relationships between counterparties. Since then, derivatives have shifted from banks to shadow banks. There has also been an emerging market bubble in corporate credit as investors seek yield. The document raises concerns about liquidity risks if interest rates rise or demand slows, given the shift away from banks as liquidity providers. It argues that new approaches are needed to encourage long-term, sustainable investment by non-banks.
The document provides an overview of the banking industry in 2016, covering economic outlook, regulatory outlook, and key trends. Regarding economic outlook, growth is expected to remain slow in developed markets and emerging markets face challenges. Regulatory changes will require banks to further reduce risks and costs. Key trends include disruptive fintech players, digital transformation, cloud adoption, and exploring blockchain/distributed ledgers. Banks are focusing on innovation and simplifying systems to adapt to the changing landscape.
This document summarizes key challenges and opportunities facing the financial services industry. It discusses the economic environment, industry consolidation, net interest margin compression, changing demographics, and regulatory changes like the Durbin Amendment and Dodd-Frank Act. Strategies are proposed for credit unions to optimize performance, including maximizing overdraft opt-ins, evaluating product lines, focusing on relationships, and improving operational efficiency. Generational trends and their implications are also examined.
Michael Durante Western Reserve Blackwall Partners 2011 outlook primer- finalMichael Durante
- Blackwall Partners believes the financial crisis has ended and a new "golden age" for financial stocks is beginning, similar to the period following the 1990s savings and loan crisis.
- Excessive capital reserves built up during the crisis due to mark-to-market accounting will be redeployed, leading to aggressive capital management and benefiting investors.
- Financial stocks currently trade at very low valuations and earnings growth is expected to be much higher than other sectors over the next few years, yet they remain underowned.
Michael Durante Western Reserve Blackwall Partners 2011 outlook primer- final
TEXPO_April 2016_FINAL
1. TEXPO
April 18, 2016
Jeff Avers
SunTrust Bank
Director, Corporate Liquidity Specialist
Liquidity Management in the New Era
Regulatory Update
Matthew Roush
HollyFrontier Corporation
Manager, Cash & Treasury Operations
3. 3
Higher bank interest expense on deposits Reduced Revenue Streams
Volcker Rule
Potential divestitures
Reduced Fee Income
NSF/Overdrafts (Regulation E)
Debit Interchange (Durbin Amendment)
Increased Balance Sheet Costs
Basel III Capital Ratios
Basel III Liquidity Coverage Ratio
Increased Fees
Uncollateralized daylight overdrafts
FDIC
2a-7 Money Fund Reform
• 2010 Changes
• 2016 Changes
Development costs for new products Employee training
Reduced value of deposits
Reg Q repeal
Basel III - Higher liquidity levels needed to
support the commercial business
Increased cost of compliance & oversight
Human, Systems, tracking and reporting
Increased emphasis on minimizing marginally
profitable and unprofitable relationships
Basel III “non-operating” and FI deposits
Collateralized Deposits
Syndicated Credit Facilities
Increased Bank Expenses Increased Customer Expenses
Regulatory Reform – A Sampling
4. 4
Banks: 2008 – 2012
Fed Funds Target lowered from 4.25% 1Q 2008 to 0-.25% 4Q 2008
Unlimited FDIC Insurance: late 2008 through December 2012
FDIC Coverage raised from $100K to $250K per depositor
Regulation Q Repealed
Money Funds: Implemented 2010
Max Weighted Average Maturity reduced from 90 to 60 days
30% of portfolio must mature within one week and 10% must mature overnight
Max of 2nd tier securities reduced from 5% to 3%
2nd tier issuer limit reduced from 1% to 1/2%
Max maturity of 2nd tier securities reduced from 397 to 45 days
Key Regulatory Changes Impacting Liquidity Management
5. 5
Corporate Cash Has Been Increasing
Grew from $500 Billion in
1988 to more than $2.2
Trillion at the end of 2015
Checkable deposits as a
percent of Corporate Cash
have increased steadily
since 2008
• Relative Value of ECR
• Unlimited FDIC through
12/31/2012
• Declined from 25% in 1988
to 1.9% in 2008 , before
growing to 20% in 2013-15
Trends In Corporate Cash
Source: Federal Reserve Bank
Source: Federal Reserve Bank
6. 6 6
Market Rates for Cash Investment Instruments
Alternative Cash Investment Options
• Rates obtained from (1)
WSJ Money Rates, (2) Crane
Data (money funds) and (3)
State-specific LGIPs
SunTrust Sweep Yields
As of March 2016
Master Note 10 bps
Repo 4 bps
Federated
Prime Fund
8 bps
Federated
Treasury
Fund
4 bps
Market rates continue to
remain extremely low
As of late march overnight,
30-day and 90-day rates
are at their highest levels in
7+ years, but in-line with
those seen since the
December 2015 Fed rate
hike
• One-month and three-
month Libor are near
their 52-week highs
• US Treasuries, 30-day
CP, Eurodollars, and
money market funds are
all at or near their 52-
week highs as well
Short-term Investment Instrument Rate as of
7/13/2011*
Rates
11/26/2012
Rates
11/20/2013*
Rates
2/27/2015*
Rates
3/30/2016*
Overnight Instruments
Fed Funds 6 bps 16 bps 12 bps 10 bps 39 bps
Repo 2 bps 29 bps 8 bps 18 bps 48 bps
Bank ECR (Analyzed Business Checking) 35 bps 25 bps 20 bps 15-20 bps 15 -50 bps
Bank Hybrid Analyzed ECR + Interest Checking 25/5 bps 20/5 bps 10-15bps 10-15 bps
30-Day Instruments 11/26/2012 11/20/2013 2/27/2015 3/20/2016
Treasuries 2 bps 15.5 bps 8 bps 1.5 bps 20 bps
Commercial Paper 12 bps 14 bps 7 bps 8 bps 34 bps
Eurodollars 12 bps 12 bps 10 bps 10 bps Not Quoted
Libor 18.7 bps 20.9 bps 16.7 bps 17.2 bps 43 bps
Bank Money Market Account Standard Rate 25 bps 15 bps 12 bps 10 bps 15-20 bps
90-Day Instruments 7/13/2011 11/26/2012 11/20/2013 2/27/2015 3/20/2016
Treasuries 3 bps 10 bps 8 bps 6.5.bps 30 bps
Commercial Paper 15 bps 16 bps 12 bps 14 bps 48 bps
Libor 24.9 bps 31.2 bps 23.8 bps 26.2 bps 63 bps
Eurodollars 15 bps 20 bps 15 bps 15 bps Not Quoted
AAA-Rated Taxable Money Funds: 7-day Yield as of 6/30/2011 10/30/2012 10/31/2013 12/31/2014 2/29/2016
Crane Treasury Institutional MF Index 1 bps 1 bps 1 bps 1 bps 9 bps
Crane AAA Prime Institutional MF Index 4 bps 9 bps 3 bps 2 bps 24 bps
7. 7
Wall Street Journal
December 7, 2014
“Banks are urging some of their largest customers in the U.S. to take their cash elsewhere or be slapped
with fees, citing new regulations that make it onerous for them to hold certain deposits. The banks,
including J.P. Morgan Chase, Citigroup, HSBC Holdings PLC, Deutsche Bank, and Bank of America,
have spoken privately with clients in recent
months to tell them that the new regulations
are making some deposits less profitable,
according to people familiar with the
conversations.
In some cases, the banks have told clients,
which range from large companies to hedge
funds, insurers and smaller banks, that they
will begin charging fees on accounts that
have been free for big customers, the people
said. Bank officials are also working with
these firms to find alternatives for some of
their deposits, they said.”
Banks Urge Clients to Take Cash Elsewhere
8. 8
New & Proposed Regulatory Changes Impacting Liquidity Mgt
Basel
III LCR
2a-7
Reform
Reg Q
Repeal
Fed
Policy
9. 9 www.suntrustrh.com
Implied Probability of a 2016 Rate Hike
Source: Bloomberg
* The implied probability
of a 2016 rate hike has
come down
significantly since the
beginning of January
Probability of a Fed Rate Hike*
By…. 3/29 2/16 1/5
April 0% 9% 56%
Mid-Year 28% 24% 79%
Year-End 63% 45% 92%
10. 10 www.suntrustrh.com
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
1990 1994 1998 2002 2006 2010 2014 2018
2018
"Long-term"
1994 - 300
bps over 13
1999 - 175
bps over 12
2004 - 425
bps over 25
Fed
Projections
2016
2017
The Fed remained on hold at its March meeting
•In March, the FOMC left the Fed Funds target rate at 0.25%-0.50%, noting that while inflation has picked up
in recent months, global economic developments pose a risk to the US economy going forward
– The Fed’s Summary of Economic Projections backed up the Committee’s commitment to a slow and
gradual tightening. The median expectations for the Fed Funds rate at the end of 2016 and 2017
decreased to 0.875% and 1.875%, down 50 bps from their December projections
•Historical tightening cycles show the Fed has tightened on average 22.5 bps per month for at least 12
months. The current 2016 median projections suggest the Fed anticipates four, 25-bp increases next year
The Importance of Recent Fed Commentary
Note: Follows the median of the Fed’s Projections. Implied 3mL forward curve is for approximately four years from start date. Assumes 3mL resets 25 bps above
the Fed Funds Rate (historical average since December 1984)
Source: Bloomberg, Federal Reserve
(a) The central tendency excludes the three highest and three lowest projections for each variable in each year
(b) Longer-run projections for core PCE inflation are not collected
Fed Funds Target Rate with Last Three Tightening Campaigns Projected Fed Funds Rate by FOMC Members vs Forward Curves
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
2016 2017 Longer Run2018
3m LIBOR Forward Curve March FOMC Implied Curve
11. SEC 2a-7 Money Fund Reform
October 2016 Implementation Net Impact
Net Asset Value
Prime and municipal funds convert to “floating NAV”
- NAV to be calculated to 4 decimal places ($ 1.0000)
Treasury and government funds remain stable NAV
Liquidity Fee
Weekly liquid assets < 30% ► Fund Board may impose a 2%
redemption fee
Weekly liquid assets < 10% ► 1% redemption fee
- Fund Board can determine otherwise
Redemption Gate
Weekly liquid assets < 30% ► Fund Board may suspend redemptions
for up to 10 days
Implemented 2010 Net Impact
Max Weighted Average Maturity reduced from 90 to 60 days
30% of portfolio must mature within one week and 10% must mature
overnight
Max of 2nd tier securities reduced from 5% to 3%
2nd tier issuer limit reduced from 1% to 1/2%
Max maturity of 2nd tier securities reduced from 397 to 45 days
Reduced portfolio credit risk
Reduced portfolio liquidity risk
Reduced portfolio duration risk
Permanently lowered the yield relative to
alternative investment options
Provides a process for money funds to follow
when under stress
Empowers the Board to Act
Shifts certain risks from the fund to
investors/shareholders
12. 12
Subject to Full LCR Subject to Partial LCR Not Subject to LCR
U.S. Bank Holding
Companies with ≥ $250
billion in total
consolidated assets
U.S. depository
institution holding
companies with ≥ $50
billion in total
consolidated assets
U.S. bank holding
companies (BHC) or
Savings & Loan Holding
Companies (SLHC ) with
< $50 billion in total
consolidated assets
*Includes the top 8 US
Banks ranked by assets as
of 12/31/2015
*Includes the 9th through
35th largest US. banks
ranked by assets as of
12/31/2015
*Includes the remaining
U.S. banks and bank
holding companies
* Source: Federal Reserve Bank Rankings as of December 31, 2015
Basel III Liquidity Coverage Ratio
The LCR requires a banking organization’s stock of unencumbered high-quality liquid
assets (HQLAs) to be at least 100% of its total net cash outflows over a 30-day
standardized supervisory liquidity stress scenario
Per the Securities and Exchange Commission:
13. 13
Parent Company Assets ($B)
As of 12/31/2015
Assets≥$250billion
1 JPMorgan Chase 1,914
2 Bank of America 1,639
3 Wells Fargo 1,610
4 Citigroup 1,299
5 U.S. Bancorp 417
6 PNC Financial 348
7 Bank of New York
Mellon
319
8 Capital One 273
Assets≥$50billion
9 TD Bank US 246
10 State Street 241
11 BB&T 205
12 SunTrust 187
13 HSBC North America 183
14 CHASE Bank (DE) 149
15 Fifth Third 139
16 Morgan Stanley Bank 136
17 Goldman Sachs Bank 134
18 Regions Bank 125
Parent Company Assets ($B)
As of 12/31/2015
Assets≥$50billion
19 M&T 122
20 Northern Trust 116
21 MUFG Union Bank 115
22 Ally Bank 111
23 Citizens Bank 108
24 BMO Harris 104
25 Capital One 102
26 KeyBank 93
27 Santander USA 90
28 Discover Bank 86
29 Compass/BBVA 85
30 Bank of The West 76
31 Comerica 71
32 Huntington 71
33 Zions BanCorp 59
34 First Republic 59
35 Deutsche Bank 52
Basel III Banks
Source: Federal Reserve Bank as of December 31, 2015
14. 14PwC
Deposit Runoff Factors
Basel III Liquidity Coverage Ratio: Deposit Behavioral Issues
Stock of Highly
Liquid Assets
Stable
Deposits
(3 -5% Runoff)
Less Stable
Deposits
(10% Runoff)
Wholesale
Operational
(25% Runoff)
Other
Wholesale
Non-Financial
(40% Runoff)
Other
Wholesale
Financial
(100% Runoff)
Under the LCR standard, each
dollar of assumed runoff
requires an offsetting dollar
of liquid asset buffer. Runoff
assumptions will therefore
have a significant impact on
deposit profitability.
14
Retail/Consumer
and
Small Business
Wholesale
Basel III Liquidity Coverage Ratio
15. Basel III Liquidity Coverage Ratio (LCR)
I II III
Bank Size (Assets) $250B+ $50-$250B < $50B
Basel III Compliance 100% 70% NA
Operating Deposits 25% 17.5% NA
Non-Operating 40% 28% NA
FSE (FI) Deposits 100% 70% NA
The LCR requires a banking organization’s stock of unencumbered high-quality liquid assets (HQLAs) to be
at least 100% of its total net cash outflows over a 30-day standardized supervisory liquidity stress scenario
16. 16
Credit Risk: Depositors have a preferred claim
DIC National Depositor Preference Rule
Order of Settling Claims in the Event of a Bank Failure
1 Administrative Expenses of the Receiver
2 Any Deposit Liability of the Institution
• Insured Deposits are settled first, followed by uninsured deposits
• Eurodollar and other offshore deposits are considered a general creditor
obligation
3 Any Subordinated Obligations
4 Any Other General or Senior Liabilities of the Institution
• This includes offshore deposits
5 Any Obligation of Commonly Controlled Depository Institutions for Cross-
Guaranty Assessments Under 12 U.S.C. §1815(e)(2)(C)
6 Any Obligations to Shareholders or Members (including Holding
Companies and their Creditors
Source: Federal Deposit Insurance Corporation
FDIC National Depositor Preference Rule
17. 17
Credit Risk: Depositors have a preferred claim
DIC National Depositor Preference Rule
Announced by Moody’s on March 17, 2015
Previous
Approach
• Each bank is assigned a single overall long-term rating
• Deposits and other forms of unsecured long-term debt are
considered as part of the bank’s long-term debt structure
New Approach • The bank is not assigned an overall rating
• Individual classes of long-term debt are each assigned their
own rating
• Deposits are given their own unique rating
• Long-term unsecured debt is given it own unique rating
Net Effect Deposits will likely be rated higher than a bank’s unsecured
debt in recognition of the depositor’s preferential claim over
that of general creditors
Source: Moody’s Investors Service
Changes to Moody’s Bank Rating Methodology
18. 18
When Interest Rates Rise, The Repeal of Reg Q1 plus Money Fund Reform
Could Drive Corporate Cash Balances onto Bank Balance Sheets…
Provided the Banks Want the Liquidity
Percent of Total Corporate Liquidity Held in Bank Deposits*
This is a positive outcome
for U.S. banks only if loan
demand and deposit growth
are in synch
*Source: 2010 AFP Liquidity Survey and Treasury Strategies’ Global Liquidity Research
¹ Repealed in 2011, Regulation Q was a 1930s Depression Era regulation that disallowed banks from paying interest on commercial checking accounts
¹
0%
20%
40%
60%
80%
US
Reg Q
France
Post-Reg
Q
UK
No Reg Q
In countries allowed to pay interest on checking, corporates maintain 60-70% of
their liquidity in the banking system
Impact of Reg Q Repeal
19. 19
Post Reg Q Repeal, the Primary Purpose of Sweep Has Changed
Primary Purpose of Sweep
Old Paradigm Post-Reg Q
Obtain yield on idle cash balances Diversify away from bank risk
Obtain yield in excess of interest-bearing DDA
Predominant Sweep Vehicles
Money Funds
Eurodollar Deposits
Repo
Bank Parent Commercial Paper
Repo (eliminate credit risk)
Money Funds (diversify away from bank risk)
Bank Parent CP (yield enhancement)
Alternative ‘off balance sheet’ products
The Impact of Reg Q Repeal: The Future of Sweep
Source: Treasury Strategies’ proprietary research; Commercial
Deposit/Sweep Study & Global Corporate Liquidity Research
$-
$100
$200
$300
$400
$500
$600
$700
$800
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 YTD
Total U.S. Sweep Balances ($B)
20. Matthew Roush, CTP
Matthew Roush is Manager, Cash & Treasury Operations at HollyFrontier
Corporation and Holly Energy Partners He has worked in various Treasury
and Credit roles within the company since 2010. Prior to joining
HollyFrontier, Matthew served in various Credit roles at both Leggett & Platt,
Inc. in Carthage Missouri and Love’s Travel Stops and Country Stores
headquartered in Oklahoma City.
Matthew earned his Certified Treasury Professional (CTP) credential in
January 2015. He graduated from Missouri Southern State University with a
BSBA and earned his MBA degree from Missouri State University in
Springfield, Missouri. He has been active with the Dallas Association for
Financial Professionals since 2013 where he currently serves on the Board.
Matthew is based at HollyFrontier’s corporate office located in Dallas, TX.
21. FOOTPRINT OF HOLLYFRONTIER AND
HOLLY ENERGY PARTNERS*
• Pure play inland refining company with 443,000 barrels
• per day of crude capacity
• Proximity to North American crude production and attractive niche product markets
• Collaboration with HEP
provides strategic
growth opportunities in
logistics and marketing
operations
About the HollyFrontier
Companies
• 443,000 BPD Refining Capacity
• 12.2 Nelson Complexity
• Approximately 3,000 Pipeline miles
• 75% UNEV ownership
• 25% SLC Pipeline ownership
• 50% Frontier Pipeline ownership
• 13 million barrels of crude & product
storage
• 7 Loading Racks and 10 Terminals
*As of 9/30/2015
22. Financial Highlights
($ in thousands,) 2015 2014 2013
Revenues $13,236,501 $19,794,327 $20,160,560
Net Income 804,634 723,806 767,823
Cash & Mkt Securities 210,552 1,042,095 1,665,263
Shareholder Equity 5,253,415 5,523,584 5,999,620
- $1 Billion Senior Unsecured Credit Facility
- Investment Grade Ratings: Moody’s Baa3 (Stable Outlook), S&P BBB- (Stable Outlook)
- $250 Million Senior Notes – 10 year 5.875% due 2026 (issued March 2016)
Financial Highlights
($ in thousands,) 2015 2014 2013
Revenues $358,875 $332,545 $305,182
Net Income 137,208 105,525 79,449
Cash & Mkt Securities 15,013 2,830 6,352
Shareholder Equity 383,101 449,821 466,934
- $1.2 Billion Revolving Credit Facility (upsized from $850 million in March 2016)
- Investment Ratings: Moody’s Ba1 (Stable Outlook), S&P BB+ (Stable Outlook)
- $300 Million Senior Notes – 18 year 6.50% due 2020
23. Treasury Department
Vice President & Treasurer
Manager
Cash & Treasury
Operations
Treasury Analyst II
Manager
Credit & Collections
Credit Analyst III
Credit Analyst III
Credit Analyst II
Manager
Risk Management
24. Investment
Policy
Investment Concerns
-Preservation of Capital
-Need for Daily Liquidity
-Constant NAV required in current IP
SCOPE
-This policy shall apply to Holly Frontier Corporation and all subsidiaries.
-Applies to cash managed in-house and cash with external managers, if any.
- Not applicable for benefit/retirement plan related investments.
OBJECTIVES (in order of priority)
- Safety of principal is foremost.
- Maintain liquidity sufficient to meet company’s projected cash requirements.
- Maximize after-tax return (net of fees) consistent with safety of principal and liquidity objectives.
PARAMETERS
- Permitted Investments
- Credit Quality
- Diversification / Concentration
-Maturity Restrictions
*The investment policy must be reviewed at least annually by the Treasurer and Treasury Manager, updated as appropriate
with concurrence by the CFO and approval of the revised policy by the CEO.
25. 25
Summary of Today’s Discussion
SunTrust Bank, Member FDIC. SunTrust is a federally registered service mark of SunTrust Banks, Inc. 04/13
Basel
III LCR
2a-7
Reform
Reg Q
Repeal
Fed
Policy