2024-10-29 07:48

JOHANNESBURG, Oct 29 (Reuters) - South Africa's rand was little changed on Tuesday, as investors held off from placing big moves ahead of mid-term budget announcement this week. At 1508 GMT, the rand traded at 17.7025 against the U.S. dollar, not far from its previous close. The dollar last traded about 0.24% firmer than its previous close. Finance Minister Enoch Godongwana's budget policy statement to parliament on Wednesday will provide clues on the fiscal outlook of Africa's most industrialised economy. A Reuters poll of economists published last week predicted the budget will lay out a lower 2024/25 deficit estimate than was given in February's main budget, but fiscal challenges are expected to slow consolidation efforts next year. Earlier in the day, the South African Reserve Bank published the country's M3 money supply and private sector credit figures for September. Credit growth (ZACRED=ECI) , opens new tab slowed to 4.63% from 4.95% in August, while M3 money supply growth (ZAM3=ECI) , opens new tab rose to 7.25% from 6.11% over the same period. On the Johannesburg Stock Exchange, the blue-chip Top-40 index (.JTOPI) , opens new tab closed down 0.34%. South Africa's benchmark 2030 government bond was stronger, as the yield slipped 2 basis points to 9.27%. Sign up here. https://www.reuters.com/markets/currencies/south-african-rand-edges-higher-investors-await-mid-term-budget-2024-10-29/

2024-10-29 07:39

MUMBAI, Oct 29 (Reuters) - A rise in defaults by over-leveraged small borrowers is hitting India's top lenders, with bank executives and analysts expecting higher levels of stress in the personal loans and micro-credit segments over the next year. The rise in defaults marks a turn in the credit cycle for Indian lenders, whose bad loans dropped to a multi-year low of 2.8% of all assets as of end-March, according to central bank data. In the September quarter, however, five of the eight largest private sector banks have reported an increase in bad loans. HDFC Bank (HDBK.NS) , opens new tab, Kotak Mahindra Bank (KTKM.NS) , opens new tab, IndusInd Bank (INBK.NS) , opens new tab, RBL Bank (RATB.NS) , opens new tab and IDFC First Bank (IDFB.NS) , opens new tab saw gross bad loans as a percentage of total assets rise between 2 basis points and 19 basis points during the quarter. Most banks have also increased provisions, or funds set aside to cover bad loans, in anticipation of a rise in defaults. The surge in retail loan defaults comes against the backdrop of a booming economy, which is seen expanding 7.2% in the current year to March 2025 with bank lending growing at twice that pace. Segments such as personal loans and credit cards, in particular, saw much faster growth, in excess of 25% until earlier this year, forcing the central bank to step in to curb "exuberance" in retail lending. Slippages, or the proportion of good loans turning bad, would be elevated and stress could remain high "for the next 3-4 quarters at least", said Pranav Gundlapalle, senior research analyst at Bernstein. Rising defaults, along with higher capital requirements imposed on banks last year, and series of actions against exuberant lending practices have slowed growth in segments such as personal loans and credit cards. While a moderate worsening of asset quality may not be an immediate cause of concern for well-capitalised banks, the trend of rising bad loans and slowing retail loan growth could weigh on their profitability outlook, analysts said. "We do see a general trend, particularly in unsecured (loans), where there is stress across multiple segments," said Arjun Chowdhry, group executive for segments including cards and retail loans at Axis Bank (AXBK.NS) , opens new tab, the country's third-largest private lender. Stress is being driven by "indebtedness" caused by over-leveraging, Chowdhry said on an analyst call. RISING DEFAULTS The surge in bad loans is being seen mainly among borrowers who have three or more unsecured personal loans, said Rajeev Jain, managing director of Bajaj Finance, India's largest retail non-bank lender, due to easy access to funding amid extensive competition to gain market share. For example, Harpal Singh, a 45-year old Mumbai resident whose annual income is 780,000 Indian rupees ($9,278), racked up personal loans and credit card debt of five million rupees over the last six years and is now struggling with the repayments. "Medical emergencies have completely wiped off my savings and the general cost of living in Mumbai is so high that there is hardly anything left to pay," Singh said. Defaults have also risen in the microfinance segment, which includes loans given to low-income borrowers. Climate-related disruptions to crops have eroded incomes in rural areas, said a banker with a state-run bank, declining to be identified as they are not allowed to speak to the media. The central bank, which this month barred four non-bank lenders from fresh lending due to "usurious" pricing practices, has sought data from microfinance firms on loan spreads, said five sources familiar with the requests. The sources declined to be identified as they are not authorised to speak to the media. An e-mail sent to the central bank was not answered. ($1 = 84.0740 Indian rupees) (This story has been refiled to add a name in the editing credits) Sign up here. https://www.reuters.com/business/finance/indian-lenders-face-rising-defaults-over-leveraged-retail-borrowers-2024-10-29/

2024-10-29 07:36

Oct 29 (Reuters) - UK's Serica Energy (SQZ.L) , opens new tab said on Tuesday it expects full-year production to be slightly below its previous forecast due an outage at its Triton floating production storage and offloading (FPSO) vessel in the North Sea. The FPSO has a problem with the single gas and the operator, Dana Petroleum, is working on the necessary repairs, said Serica. The company now expects production for the full year to be slightly below its previous forecast of 41,000 to 46,000 barrels of oil equivalent per day (boepd). Serica said , opens new tab production from other assets are in line with expectations and that the recent strength in gas prices has aided its cash flow. Gas prices have averaged 97.9 pence per therm so far this month, the strongest so far in 2024, the company said. Sign up here. https://www.reuters.com/business/energy/serica-energy-cuts-full-year-production-forecast-after-north-sea-vessel-outage-2024-10-29/

2024-10-29 07:27

Oct 29 (Reuters) - Spain's largest insurer Mapfre (MAP.MC) , opens new tab said on Tuesday its net profit rose 39% in first nine months of the year as higher prices and a more benign weather and less severe natural disasters lifted its non-life business' profitability. The firm's net profit soared to 654 million euros ($803.80 million) up from 471 million euros recorded in the same period last year, while its premiums reached 21.62 billion euros. ($1 = 0.9250 euros) Sign up here. https://www.reuters.com/business/finance/spains-mapfre-profit-soars-almost-40-first-nine-months-year-2024-10-29/

2024-10-29 07:19

CANBERRA, Oct 29 (Reuters) - Some grain handlers at GrainCorp (GNC.AX) , opens new tab, one of Australia's largest exporters of wheat and other crops, began industrial action on Tuesday, threatening to disrupt the harvest just as it ramps up. Australia is one of the world's biggest shippers of agricultural products. Harvesting of wheat, barley and canola is entering full swing and will continue into January. The Australian Workers' Union (AWU) said GrainCorp handlers in New South Wales - one of the country's biggest growing regions - would conduct impromptu hour-long strikes over the next 30 days with as little as 10 minutes warning. "We'll be taking action at peak work periods, if a train comes in, if trucks line up," said AWU official Tony Callinan. GrainCorp has the largest grain storage and distribution network on Australia's east coast and in some areas farmers have no nearby alternative grain handler. Callinan said around 200 workers were taking part in the stoppages. GrainCorp said fewer than 100 had voted in the strike ballot and it had more than 1,000 grain handlers in New South Wales including casual staff. "Our teams are monitoring the situation and working to ensure harvest activity can continue at our sites," Jess Simons, the company's head of corporate affairs, said. Callinan said recent pay rises were far below the rate of inflation during a period of healthy company profits and the union wants a three-year deal boosting pay by 6% in the first year, 5% in the second and 4% in the third. GrainCorp said it had offered 6% in the first year, 5% in the second and 3% in the third. The strikes do not yet threaten grain supply but are a headache for farmers. "Growers are working within an extremely tight time frame and they need all hands on deck," said Justin Everitt, a grower and board member at industry group NSW Farmers. "Strikes at receival sites will certainly come at a cost to farmers," he said. "There will be large, random delays to when they can deliver and unload grain, which will only increase freight costs and add to the stress and fatigue of harvest." Sign up here. https://www.reuters.com/markets/commodities/grain-handlers-go-strike-australian-exporter-graincorp-2024-10-29/

2024-10-29 07:16

COPENHAGEN, Oct 29 (Reuters) - Finnish utility Fortum (FORTUM.HE) , opens new tab will invest around 100 million euros ($108 million) in the decarbonisation of its combined heat and power plant in Czestochowa in Poland, it said on Tuesday. ($1 = 0.9250 euros) Sign up here. https://www.reuters.com/sustainability/finlands-fortum-invests-108-mln-decarbonisation-czestochowa-plant-poland-2024-10-29/