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Home » Daily Briefing » Morning Briefing 15 July 2016

Morning Briefing 15 July 2016

Morning Briefing

MasterCard is to pay £68.6 million to the Sainsbury's supermarket chain in the UK after it lost a Competition Appeal Tribunal hearing over interchange fees.
MasterCard said it will take a pre-tax charge of about $90 million in its second-quarter results to reflect the judgment.

The cards network faces a £19 billion class action lawsuit over allegations that it imposed "illegal" card fees that were borne by UK customers. "While we are disappointed to see liability as part of the finding, we note that in awarding a limited portion of the claimed damages, the court concluded that Sainsbury's did not pass through interchange costs to consumers in the form of higher prices," MasterCard said in a statement.

JPMorgan posted second-quarter results ahead of expectations despite experiencing a slight fall in profit, to $6.2 billion, from the same period in 2015. Strong trading activity and a more than ten percent growth in loans contributed to a 2.4 percent increase in revenue to $24.38 billion. Costs were down by nearly six percent, and the results mark the third quarter in a row where the bank expanded its loan book by double digits.

Meanwhile, Sweden's Handelsbanken posted second-quarter operating profit ahead of expectations and said it was well placed to deal with a more difficult market in the UK, where it has a large presence, post-Brexit.

Mobile-only bank Starling received its UK banking licence yesterday and is scheduled to launch in January next year with a current account. Starling expects the number of mobile banking customers in the UK market to rise from 17.8 million to 32.6 million by 2020 and is one of a number of challengers hoping to attract customers with a high-tech offering.

The Financial Times reports that European banks might have to put up to €40 billion of extra capital into their UK branches as a result of the Brexit decision, according to the findings of a report by the Boston Consulting Group. The report says Brexit will result in an 8-22 percent increase in annual costs for the banks' capital markets divisions which may prompt banks to curtail some activities.

U.S. regulator fines Santander $10 million for overdraft practices
ANZ chief predicts mobile will kill off cards in less than a decade
UniCredit considers capital increase to meet ECB rules
Australia: 'Investing in the major banks is set to change profoundly': Citi
African Bank advances bond buyback to reduce cash pile
Blockchain and benefits — a dangerous mix?

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