Banks

Lake City Bank announced a significant expansion in the Fort Wayne market, leasing approximately 15,025 square feet at Electric Works to serve as the market headquarters for its Commercial Banking and Credit Administration teams. The bank will also open a 2,500 square foot full-service branch at the campus to serve the growing community there. The new branch and office space are expected to open in the first half of 2027. Chairman and CEO David M. Findlay said the commitment reflects the bank's success in the Fort Wayne market over the last 27 years, while President Kristin L. Pruitt said the branch reflects a focus on delivering financial services to an underserved community near the campus. Lake City Bank is a $7.2 billion bank headquartered in Warsaw, Indiana, and is the single bank subsidiary of Lakeland Financial Corporation.

Analysts now expect higher earnings per share from Bank of New York Mellon Corporation alongside fresh equity raised through a US$500 million share offering, a combination that can reshape both BNY's capital base and the future returns that base is expected to earn. The stock has returned about 265.5% over the past 3 years, putting fresh focus on whether the current valuation is backed by what BNY earns on the capital it deploys. Under the Excess Returns model, a projected stable EPS of $10.71 per share on a book value base of $58.82 per share implies an average Return on Equity of 16.11% against a cost of equity estimated at $6.23 per share, leaving an excess return of $4.48 per share. The model rolls that forward using a stable book value assumption of $66.45 per share to gauge how much value future reinvestment could add relative to today's $143.73 share price, and it concludes that BNY's estimated intrinsic value is broadly in line with the current share price. Forecast earnings of $2.27 per share, the US$500 million equity raise and the potential Payward and KB Kookmin Bank partnerships are the assumptions that would need to add up to a return profile supporting today's price, while recent insider selling at BNY has also drawn attention.

Third Coast Bancshares, Inc. and Great Plains Bancshares, Inc. jointly announced the signing of a definitive merger agreement under which Third Coast will acquire Great Plains in an all-stock transaction valued at approximately $239.6 million, based on Third Coast's closing stock price as of October 6, 2026. On a pro forma basis, the combined company is expected to have approximately $9 billion in assets following completion of the transaction. Third Coast expects to issue 5,570,352 shares of its common stock, resulting in pro forma equity ownership of approximately 78% by Third Coast shareholders and 22% by Great Plains shareholders. Great Plains, headquartered in Oklahoma City, Oklahoma, operates a 23-branch franchise across Oklahoma and Texas and reported approximately $1.9 billion in total assets as of June 30, 2026. The transaction has been unanimously approved by the boards of both companies and is expected to close in the first quarter of 2027, subject to customary regulatory approvals, approval by Great Plains' shareholders and approval by Third Coast's shareholders of the share issuance. Two Great Plains representatives will be appointed to the boards of directors of Third Coast and Third Coast Bank, and Great Plains Chief Executive Officer Mark Russell has agreed to continue serving in a leadership role following the closing.

HSBC Holdings has been questioned by the Hong Kong Monetary Authority over its decision to base a new global AI hub in Singapore, with the central bank inquiry focusing on why the AI centre was located outside Hong Kong despite the city being one of HSBC's key markets. Separately, HSBC has been appointed as one of six banks helping the UK Debt Management Office arrange the country's first digital gilt issuance. The Singapore AI hub and the UK digital gilt role both feed into HSBC's digital transformation push, which the bank frames as a core tool for cost and capital efficiency. Locating the hub outside Hong Kong may worry investors who see Hong Kong and mainland China as the anchor for HSBC's Asian wealth focus, especially with regulators asking questions.

TMBThanachart Bank, or TTB, has announced a partnership with Mazda to support Thailand's electric vehicle market through the launch of the new all-electric SUV, the Mazda CX-6e, along with a special loan offer from ttb drive. Chatcharit Tangthekingkiat, Head of the Auto Loan Group at TTB, revealed that registrations of 100% electric vehicles from January to August 2026 totaled more than 146,000 units, an increase of about 94% compared with the same period in 2025, and that in 2026 new lending for electric vehicles accounted for roughly 50% of the bank's total new auto loans. The loan promotion includes a special interest rate starting at 1.88% per year, plus free first-class insurance when arranging a loan with ttb drive, a Trade-in Campaign that makes it easier to switch to owning a car with instant approval results without needing to submit income documents, and an offer of up to 5,000 baht off one installment for customers who arrange a new auto loan for the Mazda CX-6e with ttb drive, open a ttb all free account, and sign up for the ttb touch app, provided the customer takes delivery and the contract is signed by December 31, 2026. The effective interest rate is 5.21% to 10% per year. Thee Permpongpanth, Executive Chairman and Chief Executive Officer of Mazda Sales (Thailand) Co., Ltd., said the launch of the all-electric Mazda CX-6e marks another important step for Mazda in expanding electric vehicle choices for Thai consumers, with two variants available: Premium and Premium Sports.

Bangkok Bank has joined hands with Permata Bank, part of the Bangkok Bank group, combining their strengths into a platform that links Thai and Indonesian entrepreneurs to promote trade and investment between the two countries. Chatsiri Sophonpanich, President of Bangkok Bank, said the partnership will give entrepreneurs on both sides opportunities to match businesses, drawing on Permata Bank's network of more than 200 branches covering 81 key cities across Indonesia, and will deploy local specialists to provide advice on business, investment, and finding trading partners. The collaboration aligns with the Thailand-Indonesia strategic partnership plan for 2026-2030, which Prapan Disyatat, Thailand's Ambassador to Indonesia, described as a clear platform for Thai entrepreneurs to connect with partners in Indonesia. Meanwhile, Hari Prabowo, Indonesia's Ambassador to Thailand, said the two countries are moving beyond the buying and selling of goods and services to build a stronger ASEAN economic chain. Thailand and Indonesia are currently working to expand bilateral trade from about 19.5 billion US dollars in 2025 toward a maximum target of 23 billion US dollars by 2030, with a particular focus on investment in agriculture, digital services, green energy, halal products, and fisheries.

UBS said it expects the upcoming third-quarter earnings season to show further improvement in European corporate profits, maintaining an upbeat view on the region's equities despite higher interest rates and energy prices. Matthew Gilman, head of European equity strategy at UBS Global Wealth Management's Chief Investment Office, said revenues are becoming a more important earnings driver alongside already well-established cost discipline, with currency effects shifting from a headwind to a tailwind. UBS forecasts 15% earnings growth in both 2026 and 2027 for the eurozone, citing September's strong global manufacturing PMIs and the German ifo survey as evidence of robust underlying demand. Gilman said investment in AI still appears more supply-constrained than financing-constrained, and that high energy prices reinforce the case for electrification and defense investment. UBS kept the eurozone at Attractive and favors IT, industrials, banks, Germany and health care within the region, while recommending a selective approach to consumer discretionary through its Luxury & Lifestyles theme.

Bangkok Bank Public Company Limited, or BBL, has announced a partnership with Indonesia's Permata Bank, combining their strengths into a platform that opens opportunities for Thai and Indonesian entrepreneurs to collaborate in business and promotes trade and investment between the two countries. Chatsiri Sophonpanich, President of Bangkok Bank, said the partnership will connect business partners within Permata Bank's customer network, which has more than 200 branches covering 81 key cities across Indonesia, and will provide on-the-ground experts to advise on business, investment, and the sourcing of trading partners, as well as appropriate financial support. Bangkok Bank organized the Bangkok Bank Indonesia Exclusive Trip, bringing a total of 37 corporate, mid-sized, and small business customers to meet and hold discussions with Permata Bank customers in Jakarta from September 27 to 30, 2026. Melisa Rusli, Managing Director of Permata Bank Indonesia, said that combining Bangkok Bank's regional network with Permata Bank's local market expertise will help strengthen business connectivity between the two countries. Thailand and Indonesia are currently working to expand bilateral trade value from approximately 19.5 billion US dollars in 2025 toward a maximum target of 23 billion US dollars by 2030, particularly in investment in key industries such as agriculture, digital services, green energy, halal products, and fishery goods.

Toronto-Dominion Bank says its board has proposed a new large-scale share repurchase program, pending regulatory approval. The proposal covers up to 61,000,000 shares, on top of the CA$7,104.8m the bank has already retired in 2026. Management framed the buyback as a key element of its capital management framework, intended to return capital to shareholders while keeping flexibility for other corporate priorities. The bank, a large North American lender with a CA$273.1b market cap, reported a CET1 ratio of 14.8%. The plan tests pressure points including higher compliance and technology spending, real estate exposure, and competition from Royal Bank of Canada and Bank of Montreal.

BAY shares rose 3.29%, extending yesterday's sharp 5.56% gain and running counter to the broader banking sector, most of which declined. At 10:25 a.m., the stock stood at 39.25 baht, up 1.00 baht, with trading value of 41.00 million baht, from an opening price of 38.00 baht, a high of 39.25 baht and a low of 37.75 baht. Mr. Korakot Sevetkrutmat, Director of Securities Analysis at Kasikorn Securities, said he holds a positive view on BAY based on expectations that its third-quarter 2026 results will come in better than those of other banks, with profit likely to grow both year on year and quarter on quarter, because overall lending should continue to expand well, especially large corporate loans to both domestic customers and Japanese customers investing in Thailand through the MUFG network, which supports interest income and feeds through to fee income. Meanwhile, the non-performing loan trend is expected to fall to 2.3-2.4% this year, as auto hire-purchase loans, housing loans and ASEAN loans improve in quality, which should also bring BAY's credit cost down. In addition, its valuation remains relatively laggard versus other banks, with BAY trading at a price-to-book value of 0.66 times while other banks trade at around 1 time, leaving upside, and there is a chance of an increase in dividend payments after BAY's management began placing greater emphasis on higher interim dividend payouts in the recent period, pointing to the possibility of a high dividend for the full-year 2026 results period.

Thai Credit Bank, or CREDIT, has announced a growth strategy that combines the strengths of 3 local branch models with 3 digital platforms to expand equal access to financial services for all customer groups nationwide. The 3 branch models consist of more than 500 micro-retail loan branches that emphasize compact, agile operations distributed in community and market areas; 33 full-service branches offering comprehensive savings, investment, personal loans, home loans, and financial planning; and micro-SME loan business centers piloted in 6 economic hub provinces: Chiang Mai, Chonburi, Khon Kaen, Samut Sakhon, Nakhon Ratchasima, and Surat Thani. The 3 digital platforms are alpha by Thai Credit, the main mobile banking app for individual customers, which offers a high-yield digital savings account at 1.6% per year for the first 1 to 500,000 baht; Micro Pay e-Wallet, a digital wallet for merchants accepting payments; and alpha SME, a platform for business customers that is planned to launch soon.

Thai Credit Bank Public Company Limited, or CREDIT, has unveiled its strategy for delivering comprehensive financial services by combining the strengths of its branch network with digital platforms under the concept "Everyone Matters." The approach comprises three branch models: more than 500 micro-lending branches, which are compact outlets spread across community and market areas; 33 full-service branches offering everything from savings, investments, personal loans and home loans to financial planning; and micro-SME loan business centers, currently being piloted in six key economic provinces, namely Chiang Mai, Chonburi, Khon Kaen, Samut Sakhon, Nakhon Ratchasima and Surat Thani. At the same time, the bank is developing three digital platforms: alpha by Thai Credit, a mobile banking app for individual customers supporting transfers, withdrawals and payments, along with a digital savings account offering interest of up to 1.6% per year on the first 1 to 500,000 baht deposited; Micro Pay e-Wallet, a digital wallet for merchants that helps accept payments and leverage transaction data to improve access to credit; and alpha SME, a platform for business customers that helps manage credit lines, with plans to launch the service soon.

Analysts at Dao Securities (Thailand) Public Company Limited stated that the average dividend yield of the banking sector remains higher than the market average, expecting the sector's average dividend yield in 2026 to be around 6%, above the market average of 3%. SCB will have the highest dividend yield in the sector at 6.7%, followed by KTB and TISCO at 6.3% and KKP at 6.1%. Meanwhile, TTB and KBANK have additional upside if leftover funds from share buyback programs are used to pay extra dividends. The analysts expect dividend payout momentum in the banking sector to remain high in 2027 as well, since Tier-1 capital remains high at an average of 17%, above the Bank of Thailand's minimum threshold of 12%. The research team maintains an overweight investment weighting for the banking sector because the downward interest rate trend has already run its course, while share prices over the past month have declined by about 5%, yet the sector's average dividend yield still stands at around 6%, higher than the stock market's average dividend yield of 3%. Valuations are also not expensive, trading at only 0.95 times PBV, which suggests this is a good opportunity to gradually accumulate shares. KBANK and KTB remain the top picks. For KBANK, the target price is 270.00 baht, driven by its leadership in wealth management and a high dividend yield of around 6%, with additional upside if leftover funds from share buyback programs are used to pay extra dividends. For KTB, the target price is 50.00 baht, based on strong asset quality from its focus on government-sector lending, which carries low risk and can withstand an economic slowdown, along with a high dividend yield of around 6%.

Mizuho Securities President Yoshiro Hamamoto has laid out a strategy centered on "connecting" companies and investors, doing what major U.S. and Japanese firms cannot. In SpaceX's June 2026 listing, which raised 85.7 billion dollars, or about 14 trillion yen, in the largest IPO ever, Mizuho Securities' U.S. unit was the only Japanese brokerage to join the lead underwriter group, selling about 80 percent of the roughly 350 billion yen raised in Japan, with Rakuten Securities and SBI Securities selling the rest. The effort added about 1,000 new wealthy clients' accounts, and mass-retail customer accounts also grew. Hamamoto said that unless the firm makes substantive proposals to customers whose attention was drawn to Mizuho Securities by handling SpaceX shares, it will be a waste of a treasure, and that this IPO is only the entry point, expressing his eagerness to expand the number of accounts further. Through its alliance with Rakuten Securities, Mizuho Securities handles contact with the mass market, and as of fiscal 2026 their combined assets under custody stand at 121.7 trillion yen, with Mizuho Securities at 63.0 trillion yen and Rakuten Securities at 58.7 trillion yen, surpassing Daiwa Securities' 116 trillion yen, and by fiscal 2030 the two are projected to reach 212.2 trillion yen combined, chasing Nomura.

Isabella Bank said Wednesday that it and Grand River Commerce have received all regulatory approvals required to complete their previously announced merger. Grand River shareholders approved the merger on Sept. 18. The merger is expected to close on Nov. 2. Shares of Isabella Bank rose 1.23%.

Isabella Bank Corporation and Grand River Commerce, Inc. announced they have received all required regulatory approvals to complete their previously announced merger, with the deal expected to close on November 2, 2026, pending satisfaction of customary closing conditions. Grand River shareholders voted to approve the merger on September 18, 2026. The transaction is being carried out under an Agreement and Plan of Merger dated June 11, 2026, among Isabella, Grand River and 401 Merger Sub, Inc. Isabella is the parent holding company of Isabella Bank, a Michigan state-chartered community bank headquartered in Mt Pleasant that was established in 1903 and operates 31 locations across eight mid-Michigan counties. Grand River is the parent holding company of Grand River Bank, a Michigan state-chartered community bank headquartered in Grandville that opened in April 2009 and serves the West Michigan market, including Grand Rapids and surrounding communities in Kent and Ottawa counties, through two full-service branches.

Raymond James upgraded Chain Bridge Bancorp Ltd to Outperform from Market Perform and established a $53 price target, sending the McLean, Virginia-based lender's shares up 6.2% Tuesday. Analyst Steve Moss pointed to the bank's short-duration earning assets and low-cost deposit base, which he said position it to disproportionately benefit from the Federal Reserve's recent rate hike and an extended high-rate backdrop. Moss also cited Federal Election Commission data showing political fundraising has surged more than 40% compared to prior election cycles, sustaining strong deposit inflows into the third quarter of 2026. Raymond James raised its earnings estimates for the bank, noting current projections still carry an upward bias, and called valuation particularly compelling at roughly eight times its average earnings per share estimate for 2027 and 2028. Investors are likely to watch Chain Bridge's October 27th quarterly report to confirm whether deposit growth and interest margins match analysts' heightened expectations.

JPMorgan Chase & Co. is expected to report year-over-year earnings growth on higher revenues when it releases results for the quarter ended September 2026 on October 13. The Zacks Consensus Estimate calls for quarterly earnings of $5.94 per share, a year-over-year change of +17.2%, on revenues of $52.21 billion, up 12.5% from the year-ago quarter. The consensus EPS estimate has been revised 0.25% higher over the last 30 days, and the Most Accurate Estimate sits above the Zacks Consensus Estimate, producing an Earnings ESP of +1.19%. Combined with a Zacks Rank of #3, that points to JPMorgan Chase & Co. most likely beating the consensus EPS estimate. In the last reported quarter, the company posted earnings of $6.14 per share against an expectation of $5.59, a surprise of +9.84%, and it has beaten consensus EPS estimates in each of the last four quarters.

SHF Holdings, Inc., doing business as Safe Harbor, reported preliminary third quarter 2026 deposit results showing its trailing 14-day average deposit balance reached approximately $119.3 million as of September 30, 2026, up 7.4% from approximately $111.1 million a year earlier and roughly 25% above the trailing 14-day average low of approximately $95.3 million recorded in May 2025. The quarter-end trailing 14-day balance is the company's highest since April 2024, and the sequential increase of approximately 9.6% from approximately $108.9 million as of June 30, 2026 was more than double the increase recorded in the second quarter, which itself rose approximately 4.1% from approximately $104.6 million as of March 31, 2026. Safe Harbor also estimated that the Federal Reserve's 25-basis-point increase in the federal funds target rate on September 16, 2026 will contribute approximately $150,000 in incremental annualized investment income, based on client deposit and loan balances as of September 30, 2026 and assuming those balances and current partner financial institution arrangements remain unchanged. CEO Terry Mendez said the continued growth in deposits reflects the strength of the strategy the company has put in place as it broadens its platform across banking, lending, business solutions and institutional infrastructure. The preliminary figures have not been audited or reviewed by Safe Harbor's independent registered public accounting firm and remain subject to the company's normal quarter-end closing and review procedures, with full third quarter 2026 financial results to be reported at a later date.

TowneBank has agreed to acquire blueharbor bank in a definitive merger agreement valued at approximately $154 million, based on TowneBank's 10-day volume-weighted average price of $36.15 as of October 2, 2026. Under the terms, blueharbor shareholders will receive $12.70 in cash and 1.0534 shares of TowneBank common stock for each share held, an implied value of $50.78 per share, with roughly 75% of the total consideration paid in TowneBank stock. The deal adds a bank with approximately $628 million in total assets, $537 million in loans, $551 million in deposits and 5 office locations as of June 30, 2026, strengthening TowneBank's position in the greater Charlotte MSA and the I-77 corridor including Mooresville and Statesville. Kelley Earnhardt Miller, Chairman of the blueharbor Board and Chief Executive Officer of JR Motorsports, will join the TowneBank Corporate Board of Directors, while blueharbor President and Chief Executive Officer Jim Marshall will become Piedmont Regional President. The transaction, approved by both boards, is expected to close in the first quarter of 2027, subject to regulatory approval and the approval of blueharbor's shareholders.

Scotiabank's Scotia Wealth Management announced the launch of Scotia Global Intelligence, a new service giving Ultra-High-Net-Worth clients a comprehensive view of their entire portfolio. The offering combines institutional investment expertise, advanced portfolio intelligence and reporting, and strategic insights, and builds on Scotia Wealth Management's existing suite of family office services, business transition and succession planning, governance advisory, trust and estate expertise, intergenerational wealth transfer strategies, and private banking solutions. The service is delivered by the Chief Investment Office team, whose investment and alternative capabilities in Canada were recently recognized in the 2026 Euromoney Private Banking Awards, and is built on strategic relationships with Marsh, which has approximately $16.2 trillion in assets under advisement as of June 30, 2025, and with Addepar, a global data and AI platform. Jacqui Allard, Group Head, Global Wealth Management & Insurance at Scotiabank, said the integration reflects the growing importance of a more connected approach to managing wealth, while Todd Nelson, Canada Leader at Marsh Investments and Retirement, and Peter O'Brien, Chief Revenue Officer at Addepar, both commented on the deepened collaboration. Scotiabank reported assets of approximately $1.5 trillion as at July 31, 2026, and trades on the Toronto Stock Exchange and New York Stock Exchange under the ticker BNS.

Pi Securities assessed the outlook for Krung Thai Bank, or KTB, maintaining its dividend payout assumption at 60% and seeing KTB as having the potential to pay a special dividend from its strong capital levels, which would support return on equity, or ROE, at a double-digit level of 10.4% in 2026 and 10.5% in 2027, the highest among large banks. For 2026 net profit, it expects growth of only 1% from the previous year amid pressure from a weakening net interest margin, or NIM, before accelerating 4% in 2027, driven mainly by loan expansion rather than NIM growth. Fee income is also expected to keep growing, particularly from the wealth management business. For third-quarter 2026 results, Pi Securities expects KTB to post net profit of about 12 billion baht, down 12% from the same period a year earlier but up 6% from the previous quarter, on loan expansion and higher fee income.

Analysts at Pi Securities estimate that KTB can pay a special dividend thanks to its strong capital levels, even while maintaining a payout ratio assumption of 60%. This factor would support a double-digit ROE of 10.4% in 2026 and 10.5% in 2027, the highest among large banks. For fourth-quarter 2026 earnings, profit is expected to rise from the same period a year earlier on higher non-interest income, but to fall from the previous quarter on higher operating expenses and still-weak net interest income. Full-year 2026 profit is expected to rise only 1% from a year earlier amid pressure from a softening NIM, while 2027 profit is expected to grow 4% from a year earlier, driven more by loan expansion than by NIM growth. Fee income should continue to grow on the back of the wealth management business. Third-quarter 2026 net profit is expected at 12 billion baht, down 12% from the same period a year earlier on lower net interest income in line with NIM and lower gains from financial instruments measured at fair value through profit or loss, but up 6% from the previous quarter on loan growth and fee income expanding on the wealth management business.

Peapack-Gladstone Financial Corporation and Peapack Private Bank & Trust announced the appointment of Ana Parra as Senior Managing Director, Group Director. Based in the Bank's Park Avenue office in Manhattan, Parra will focus on serving high-net-worth individuals, families, family offices, and privately held businesses while leading a team delivering customized private banking solutions. She brings more than 35 years of banking experience in private banking, relationship management, client service, lending coordination, deposit growth, treasury management, and wealth management referrals. Prior to joining Peapack Private, Parra served as Vice President, Relationship Manager and Private Banker at IDB Bank, where she assumed leadership of a portfolio of high-net-worth client relationships totaling approximately $300 million. Earlier in her career, she spent approximately a decade at Signature Bank and began in branch banking with Manhattan Savings Bank before advancing through positions with Republic National Bank and HSBC. Peapack-Gladstone Financial Corporation is a New Jersey bank holding company with total assets of $8.0 billion and assets under management and/or administration of $13.9 billion as of June 30, 2026.

Citigroup Inc. is taking Citi Token Services to Japan and the United Arab Emirates, broadening its digital payments network across key financial hubs. Built on a private and permissioned blockchain, the platform enables near-instantaneous movement of funds within Citigroup's network, helping clients overcome traditional banking cut-off times, holidays and time-zone constraints. With the addition of Japan and the UAE, Citi Token Services is now available across seven markets, including the United States, Ireland, Hong Kong, Singapore and the United Kingdom; Japan will support USD transactions, while the UAE will support USD and euro transactions. The platform, launched commercially in 2024 following an initial Singapore-New York pilot, was integrated with Citigroup's 24/7 U.S. dollar Clearing capabilities in 2025 and later expanded to support euro transactions through its Dublin operations. The initiative aligns with Citigroup's 2026 Investor Day strategy, which identified tokenization and next-generation platforms as longer-term Services growth drivers, with Services revenues expected to grow at a low to mid-single-digit rate in 2027-2028.

PTC agreed to be acquired by Schneider Electric for $205 per share, valuing the software company's equity at more than $22 billion, with the transaction expected to close by the third quarter of 2027. PTC shares surged 36% premarket on the news. Brazilian stocks rallied after right-wing presidential candidate Flavio Bolsonaro edged out incumbent Luiz Inacio Lula Da Silva by around 2 percentage points in Sunday's election, sending the iShares MSCI Brazil ETF up 12% and U.S.-listed shares of Itau Unibanco and Banco Bradesco up more than 13% each. Wells Fargo gained 1% after a Morgan Stanley upgrade to overweight from equal weight, while DraftKings popped over 5% on a Bank of America upgrade to buy from neutral, with analyst Julie Hoover expecting prediction markets to generate $400 million in fees for 2027 and between $200 to $400 million in market making. Estee Lauder rose 2.8% after Barclays upgraded the stock to overweight from equal weight, citing its growth and earnings profile over the next several years.

The research arm of CGS International Securities (Thailand), or CGSI, estimates that the eight banks it covers will report combined net profit of 57.4 billion baht in the third quarter of 2026, down 9.2% from the same period a year earlier but up 1.8% from the previous quarter. It expects pre-provision profit to fall 6.8% year on year and rise 1.7% quarter on quarter. Total loans in the third quarter of 2026 are likely to show slower expansion after large corporate customers of BBL and KKP repaid substantial loans in August, pulling the combined loans of the banks under coverage down 0.1% from the previous month, though they remain up 3.0% from a year earlier and up 2.4% from the end of 2025. The banks with positive loan growth are led by CREDIT, KTB and TISCO. On individual results, KKP is expected to post the strongest net profit growth in the group at 32.2% year on year and 4.0% quarter on quarter, followed by TTB with growth of 4.6% year on year and 0.7% quarter on quarter. BBL is expected to be the weakest, with net profit down 24.5% year on year, followed by KTB with a 16% decline year on year. CGSI maintains a Neutral investment weighting on the banking sector and picks KBANK as its top pick, citing its high fee income share from wealth business, at 18% of non-interest income in 2025, and a high dividend yield of 6.2% in 2026 versus the sector average of 5.6%.

Italy's largest bank, Intesa Sanpaolo, has moved closer to acquiring its rival Monte dei Paschi di Siena after MPS's largest shareholder accepted its improved takeover offer. Delfin, the financial holding company that owns 17.6 percent of MPS, has committed to selling its stake on the basis of Intesa's 35 billion euro stock-and-cash offer, equivalent to 39 billion dollars, Intesa announced on the evening of the 4th. Facing a challenge from MPS chief executive Luigi Lovaglio, who unveiled a complex defence plan in August, Intesa said on the 3rd that it would pay an additional 800 million euros in cash if MPS shareholders rejected that defence plan. The improved terms raise the 3 billion euro cash portion by 25 percent, but based on the closing price on the 2nd, the overall improvement amounts to just 2.3 percent. Intesa said on the evening of the 3rd that it would withdraw its takeover proposal if MPS shareholders approved the defence plan on the 29th, meaning shareholders must vote down the plan if they want the improved offer. According to Intesa, Delfin, the financial holding company of the Del Vecchio family that controls EssilorLuxottica, the world's largest eyewear maker, has committed to opposing Lovaglio's plan on the 29th.

CGS International (Thailand), or CGSI, estimates that the eight Thai commercial banks it covers will report combined net profit of 57.4 billion baht in the third quarter of 2026, down 9.2% from the third quarter of 2025 but up 1.8% from the second quarter of 2026. Within this group, KKP is expected to post the strongest net profit growth at 32.2% year on year, driven by robust fee income across its securities brokerage, investment banking, and KKP Dime platform businesses. TTB is expected to grow the second fastest at 4.6%, while BBL is seen weakening the most, down 24.5%, and KTB is expected to fall 16%. Overall group loans are forecast to grow 4.4% year on year and 0.2% quarter on quarter, with net interest margin at 2.89%, down 29 basis points from a year earlier, and the non-performing loan ratio expected at 3.66%. CGSI maintains a Neutral weighting on the banking sector and selects KBANK as its top pick, citing fee income from its wealth business at as much as 18% of non-interest income in 2025 and an expected dividend yield of 6.2% in 2026, above the sector average of 5.6%.