AGP Executive Report

Banking M&A & results: NBT Bancorp reported a stronger 2Q 2026 with net income rising to $53.0m and EPS to $1.02, alongside loan growth and the impact of its Evans Bancorp acquisition. Park National also posted 2Q results with net income up 22.1% to $58.8m and declared a $1.10 quarterly dividend. Capital markets: Five Star Bancorp completed the full exercise of an underwriters’ option, selling 3.13m shares at $44 each, raising about $130.6m for general purposes and growth. Deposit & rate moves: Small and mid-sized banks are lifting FCNR(B) deposit rates to attract non-resident dollars, while larger lenders keep baseline rates lower. Digital finance & payments: Circle bought IBM’s blockchain patent portfolio (hundreds of families, close to 1,000 issued patents) to support its on-chain infrastructure and payments tools. Fraud & consumer warnings: Lexington police warned residents about a phone scam that spoofs bank numbers and pushes victims to move money, sometimes into crypto. Regional banking expansion: Community Bank of Louisiana broke ground on a new Southern Loop location in Shreveport, while Gulf Bank reopened a renovated Jahra Cooperative Society branch with upgraded tech and sustainability features.

Central Banking Leadership: Indonesia’s central bank governor Perry Warjiyo has resigned early, with senior deputy Destry Damayanti set to take over as acting governor, raising fresh questions for policy continuity as the rupiah faces pressure. Monetary Policy Watch: The Bank of England is expected to hold rates at 3.75% despite oil prices rebounding above $100, with inflation at a 15-month low and markets split on whether the next move comes later. Banking Results: India’s Canara Bank reported Q1 net profit up 2% to ₹4,856 crore as asset quality improved and provisions eased; in parallel, IDFC First Bank shares surged after record Q1 profit growth. Cyber Risk: Bank of Baroda is investigating an alleged 1TB data leak after a hacker posted customer and branch information claims on the dark web. Payments & Tech: KB Kookmin Bank plans a Kinexys-powered blockchain cross-border corporate payments service next month, aiming at faster USD trade settlements. Markets & Macro: Bitcoin is back above $65,000 as U.S.-Iran tensions ease and oil falls, while crypto traders watch corporate earnings for liquidity signals. Governance & Oversight: The World Bank Group appointed Nigerian anti-corruption lawyer Ibrahim Pam as acting Compliance Advisor Ombudsman ahead of a leadership transition. Climate & Finance: The AfDB warns a “super” El Nino could hit African economies by $10bn–$20bn and strain government finances and banking systems.

World Bank Lending (Philippines): With the country moving into upper-middle-income status, the World Bank is set to approve up to $8.9bn in new loans over two years, including a $250.87m water and sanitation package that would be the first World Bank loan after the transition, plus projects on social protection and SME finance. Banking Health (Philippines): BSP data shows the domestic gross bad-loan ratio fell to 3.29% at end-June 2026, with gross nonperforming loans down to ₱584.9bn as lending expanded. Banking Regulation (Bangladesh): Bangladesh Bank extended the deadline for banks to resolve staff disciplinary cases to two months, aligning the rule with the Labour Rules. Digital Finance (South Korea): KB Kookmin Bank plans August launch of blockchain-based trade payment services using JPMorgan’s Kinexys network, initially for US-dollar payments across 10 countries. Crypto Policy (Russia): Sberbank says it will roll out regulated crypto trading infrastructure by Dec. 1, including a digital depository to record customer ownership. Capital Markets (Hong Kong): Lightelligence’s HK$2.5bn IPO began trading on HKEX after pricing at HK$183.20 per share. Corporate/Market Watch: Apple is expected to debut smart glasses at WWDC next June, with a launch targeted for end-2027, leaning on privacy-first design.

UK Rates Watch: Economists expect the Bank of England to keep the base rate at 3.75% at its July 30 MPC meeting, even as the Middle East conflict and renewed US inflation worries cloud the outlook; June CPI eased to a 15-month low of 2.6%, but the Bank still expects inflation to drift back toward 3.25% later this year. Wealth & Private Banking: UOB Private Bank set Hong Kong targets to fivefold assets under management and wealth revenue by 2030, and triple client-advisor headcount, citing rising wealth flows across China, Hong Kong and ASEAN. Crypto & Tokenisation: XRP Ledger added about $2.6bn of tokenized real-world assets over six months (excluding stablecoins), ranking second for net RWA inflows behind BNB Chain. Banking Regulation: Wise said the US OCC rejected its bid for a national trust bank charter under the GENIUS Act, citing anti-money-laundering and management gaps, and it plans a fresh application. Corporate & Markets: UK investors logged record £35.3bn in dividends in Q2, with banks paying £11.1bn as higher rates boosted profits; meanwhile, Czech bankruptcies hit 418 in H1, the most since 2017.

ESG Watch: Kuwait’s Burgan Bank says it stays in the FTSE4Good ESG index after FTSE Russell’s June review, citing stronger governance, anti-corruption and climate disclosures. Oil & Rates: Central banks are bracing for potential inflation pressure as crude nears $100 a barrel, with economists warning it could complicate Fed/BoE/BoJ policy choices. Banking Operations: UK DWP benefit payments may shift for the August 31 bank holiday, with most claimants paid on the prior working day. Crypto & Regulation: Russia’s Sberbank plans crypto trading infrastructure and a digital depository by Dec. 1, as new rules move custody and settlement into the regulated system. Banking Results (India): IDFC First Bank reported standalone Q1 FY27 profit of ₹1,074.96 crore; AU Small Finance Bank posted ₹79.59 crore, while both highlighted asset-quality metrics and leadership updates. Cybercrime Probe: India’s Bhiwandi police filed an FIR over eight suspicious bank accounts tied to cyber fraud money routing. Geopolitics & Markets: EU and the US condemned escalating West Bank violence, as Israel detained dozens in raids and settlers attacked Tell, raising broader stability concerns.

Banking Profits Watch: Bank of India posted a strong Q1 FY27 jump, with consolidated net profit rising to ₹1,747.39 crore and asset quality improving, while DCB Bank reported Q1 PAT up 35.5% to ₹213 crore on better credit and metrics. PSU Pressure Point: Bank of Baroda’s Q1 FY27 net profit fell 71.9% to ₹1,278 crore after a one-time ₹5,680 crore NMC settlement hit results, even as core lending income held up. Payments & Identity: India’s regulators are rolling out Central Know-Your-Customer 2.0, aiming for a common customer ID across banks and insurers from August, with mutual funds later. Fraud & Consumer Safety: Banks and travel agents warned holidaymakers about rising online scams, and Santander UK flagged holiday fraud losses of £42,773.62 in Q2. Digital Banking Product Moves: Macau’s MPay added transfers from wallet balances to linked personal bank accounts, with tiered limits and a promo first transfer free. Markets & Funding: ICICI Bank priced a $1 billion five-year dollar bond via GIFT City at a tighter spread, signaling investor appetite for Indian bank debt. Central Banking & Tech: A policy piece on how AI is changing risk pricing and credit decisions highlighted the need for stronger governance, resilience, and cyber defenses. Eurozone Retail Finance: The ECB opened a public vote on design styles for new euro banknotes, moving toward final decisions later in 2026. Recruitment & Operations: IDBI Bank’s Specialist Officer recruitment registration closes tomorrow, and SBI released final results for Circle Based Officer hiring.

Monetary Policy: Russia’s central bank cut its key rate to 14% but lifted its 2026 average key-rate forecast to 14.5%-14.6% as inflation guidance moved to 6%-7%, citing higher fuel prices. Banking Results: India’s Bank of India posted Q1 profit up 81% to Rs 3,302.58 crore, while Bank of Baroda’s Q1 profit fell 72% after a USD 600m NMC settlement charge. Credit & Funding: RBI data showed India’s bank credit growth easing to 17.7% in the fortnight to July 15, with deposit growth slowing to 12.7%. FX Watch: Traders said India’s central bank likely intervened across markets to defend the rupee as oil-driven pressure pushed it toward record lows. Fintech Regulation: The US OCC denied Wise’s national trust bank charter application over AML/BSA deficiencies; Wise says it will reapply. Payments & Fraud Policy: US House Financial Services Republicans backed a fraud-fighting framework that would let banks slow suspicious payments and share fraud data, while limiting authorized-scam liability shifts. Digital Banking Growth: Indonesia’s GoTo-backed Bank Jago reported Q2 net profit up 54% on stronger lending and deposits. EU Cash Update: The ECB is inviting Europeans to help choose new euro banknote designs, with security and anti-counterfeiting a key driver.

EU Sanctions: The EU expanded its 21st Russia package, freezing assets of 94 Russian banks and financial institutions and banning more transactions, while adding banks and crypto service providers tied to Russia’s payment networks. Court Ruling: Nigeria’s Court of Appeal lifted a freeze on 124 bank accounts linked to businesswoman Aisha Achimugu, saying the long-running ex parte order was an abuse of court process. Payments & Banking Regulation: Wise shares slid after the US OCC denied its bid for a national trust bank licence, citing changes in payment-system rules; the firm says it will reapply under the GENIUS Act. India ID Push: India plans to roll out a common customer ID system (CKYC 2.0) for banks and insurers in August, with mutual funds later, to reduce duplicate paperwork and fraud risk. Cross-border Banking: Israel Discount Bank and Bank Hapoalim plan to end correspondent banking ties with Palestinian lenders, raising fears of economic disruption in the West Bank. Banking Deals: QSL and Doha Bank extended their league naming partnership to 2030, while UOB set targets to grow Hong Kong private banking AUM and revenue fivefold by 2030.

Banking Donations & Infrastructure: Greece’s four systemic banks pledge €160m to renovate campuses at Athens, Thessaloniki and NTUA, with PM Mitsotakis calling it a boost to public university infrastructure. Insolvency Watch: India’s NCLT admitted Superfine Metals to insolvency after Central Bank of India alleged a Rs 58.64 crore default, rejecting a Section 10A bar. ECB Banknote Overhaul: The ECB launches a public vote on new euro designs, narrowing themes to “European culture” and “rivers and birds,” with shortlisted figures including Leonardo da Vinci. Rates & Policy: The ECB holds rates steady amid Iran-war energy uncertainty, while Turkey’s central bank keeps its key rate at 37%. Cross-Border Payments: UnionPay International signs MoUs with the UAE central bank, Al Etihad Payments and Bank of China Abu Dhabi to improve QR and card interoperability. World Bank Disaster Finance: The World Bank estimates Venezuela’s earthquakes caused $19.6bn in physical damage, urging faster reconstruction funding. Security & Crime in Finance: German police detain a suspect after a fatal knife attack at a Regensburg bank, initially raising hostage fears. US Crypto Policy: Goldman Sachs CEO backs the Clarity Act as banks remain split over stablecoin and digital-asset rules. Corporate Banking Moves: Pubali Bank plans to buy a Tk 800 crore Tejgaon tower for its new corporate HQ, pending Bangladesh Bank approval.

Cybersecurity & Consumer Data: Origin Energy confirmed a hack that may have exposed customers’ names, addresses, dates of birth, phone numbers, and account info, plus the last digits of credit cards and bank accounts, and said it’s working with authorities and independent cyber experts. Banking Fraud Warnings: Sri Lanka Police issued an urgent alert about scams where fraudsters impersonate police and central bank officials on WhatsApp/Telegram to trick victims into sharing OTPs and banking credentials. Banking Sector Performance: Macquarie said CEO Shemara Wikramanayake will retire in November and be replaced by Greg Ward, as the bank shifts further toward asset management and infrastructure. Market Watch (India): HDFC Bank ADRs fell after governance concerns resurfaced, while Bandhan Bank shares slid to a four-month low after Q1 results and guidance pressure. Payments & Tech: BNP Paribas in France expanded Samsung Pay contactless payments with Hello Bank! as a new banking partner. Deposits & Stability (Nigeria): NDIC began paying insured deposits to customers of 46 failed microfinance banks via BVN-linked automated transfers. Local Banking & Community: Standard Bank urged Johannesburg residents and organisations to help revitalise the inner city, backing safety and community projects. Banking Governance Debate (India): Shiv Sena (UBT) criticised public sector banks’ large corporate loan write-offs, arguing recovery is tougher for ordinary borrowers.

Macro Outlook: World Bank Chief Economist Indermit Gill warned that US-Iran hostilities could lift inflation to 4.5% in a worst case, push rates higher and cut global growth to 1.3%. Banking Health: Namibia’s banking sector grew assets 3.8% to N$195.1bn in Q1 as credit risk improved and capital stayed strong (CAR ~17.2%). Credit Shift: India’s Q1 FY27 saw bank credit surge as capital-market mobilisation collapsed, with non-food bank credit rising more than ten-fold and driving a 148% jump in commercial-sector funding flows. Scam Pressure: A US survey estimates $68bn in 2025 scam losses, with most reports going to banks or payment apps rather than federal agencies. Fraud & Enforcement: UK police described a £300k bank scam using spoofed bank phone numbers, while Hong Kong jailed a woman for blackmail after a fabricated rape accusation against a banker. Digital Banking & Deals: Northern Trust’s Q2 gains were tied to IPO-driven capital markets activity; Alkami and The Financial Brand plan a webinar on using behavioral data to boost digital banking growth. Consumer/Community: Salvation Army launched a summer food bank appeal in the Forest of Dean as voucher support ends.

Deposit Insurance & Stability: Nigeria’s Finance Minister Taiwo Oyedele urged stronger public awareness as misinformation can trigger bank runs, highlighting deposit insurance as a key pillar for financial stability. Banking Results & Market Moves: India’s Bandhan Bank reported Q1 FY27 net profit up 35% to Rs 502 crore, but shares plunged after it cut RoA guidance to 1.2–1.4% amid margin pressure and higher tech spending. Digital Payments Upgrade: Ghana’s National Lottery Authority will deploy 5,000 modern POS terminals with Fidelity Bank to replace ageing 2G systems and speed up transactions and instant prize payouts. Bank Expansion & Licensing: Revolut launched its Australian bank after securing a banking licence, with automated migration for existing users and plans to roll out savings and credit. Corporate Finance & Capital Markets: Riyad Bank opened subscriptions for a SAR 5bn target AT1 sukuk with a 6.50% fixed profit rate, callable from year five. Banking Tech & Fraud Risk: SEBI cancelled 11 research analysts’ registrations for missing renewal fees, while a separate report flagged how AI and better skills are becoming central for banking roles.

Impeachment Finance Scrutiny (Philippines): The Senate impeachment court has subpoenaed Vice President Sara Duterte’s and her husband’s bank and tax records, with prosecutors expected to use the documents to map alleged unexplained wealth against SALN disclosures; Malacañang says no presidential sign-off is needed for bank records, while BIR access may require separate authorization. Banking Performance (Qatar): Qatar Islamic Bank won three Euromoney awards and reported H1 2026 net profit of QR2.22bn, citing strong cost discipline and asset growth. Bank Results (Qatar): Al Rayan Bank posted QR687mn net profit for H1 2026, with net financing assets up and non-performing financing down year-on-year. US Housing Finance Oversight: The Council of Federal Home Loan Banks told a House panel that the FHLBank system supports liquidity for mortgage and community lending, highlighting its Affordable Housing Program’s $9bn-plus grant impact since 1990. New Bank Moves (US): OneSource Virtual launched a federally chartered trust bank, OneSource Virtual Trust Bank, to hold and manage customer treasury funds under OCC oversight. M&A/Expansion (Brazil & Baltics): Nubank agreed to acquire Banco Porto Real, while OTP Bank agreed to buy Luminor, extending consolidation across regional banking markets. Fraud & Crime (US): Police are investigating multiple bank robberies, including a Crystal City incident and a North Charleston case, as authorities seek suspects and cash amounts.

Philippines Impeachment: The Senate impeachment court cleared subpoenas for Vice President Sara Duterte’s bank, tax and AMLC records, ordering production of documents tied to Duterte, her husband Manases Carpio, and related companies—while excluding foreign-currency deposits under confidentiality rules. UK Macro: The UK unemployment rate held at 4.9% (March–May), with vacancies falling and private-sector wage growth easing to 2.9%, alongside a June public-sector borrowing drop. Banking & Regulation: Revolut secured an APRA deposit-taking licence and launched Revolut Bank Australia, while Australia’s banking industry urged faster access to ATO data via open banking to cut fraud risk. Markets: India’s Nifty slipped below 24,200 as IT and private banking stocks dragged, with broader markets holding up better. Payments Infrastructure: Bosnia’s central bank launched a domestic instant payment system available 24/7, and Bosnia’s rollout began with major banks joining in the first phase. Dealmaking: OTP Bank agreed to buy Baltic lender Luminor, expanding OTP’s footprint across 14 countries. Corporate Finance: JPMorgan and other US banks are close to funding parts of Japan’s $550bn investment plan, as Tokyo seeks progress on its US commitments.

Impeachment Court Fallout (Philippines): Manila’s Senate impeachment court denied subpoenas for two companies tied to VP Sara Duterte, citing insufficient links to her, while still ordering production of Duterte’s own peso records; it also ruled foreign-currency deposits stay confidential unless depositors consent, tightening how bank data can be used in unexplained-wealth claims. Banking Disputes (India): Calcutta High Court refused Mamata-led TMC interim permission to operate three ED-frozen party bank accounts, after the probe alleged large transfers tied to aviation purchases. Rates Watch (South Africa & Turkey): Bank of America expects South Africa’s SARB to lift the repo rate by 25 bps this week as inflation expectations drift from target, while Turkey’s central bank is widely expected to hold at 37% amid Middle East-driven oil and inflation risks. Digital Euro Pilot (Europe): RS2 Financial Services was selected as an acquiring provider for the Eurosystem’s digital euro pilot, moving from technical prep to real-world testing. US Banking Reform (Washington): A Main Street Capital Access Act package aimed at easing rules for small banks is nearing a House vote, with Senate hurdles ahead. Fraud & Security (US): A check-fraud ring pleaded guilty after coaching recruits to avoid detection, including tactics to keep debit cards off Apple Pay and unlink from Cash App.

Philippines Impeachment: The Senate impeachment court will decide whether to subpoena Vice President Sara Duterte’s bank and tax records, with the prosecution arguing the documents are vital to the unexplained wealth case and the defense warning it’s a “fishing expedition.” BSP Payments Push: Bangko Sentral ng Pilipinas urged banks and e-wallets to cut reliance on transfer fees and expand savings, credit, insurance and investment offerings as competition and consumer choice grow. Qatar Banking Snapshot: QNB Financial Services reported steady May lending growth and resilient deposits, with loans up 0.7% month-on-month and deposits broadly flat. Sri Lanka Corporate Banking: HNB was named Sri Lanka’s Best Bank for Large Corporates at the Euromoney Awards, highlighting major sustainability-linked and project financing deals. West Bank Cash Crunch: A report says excess cash and limits on physical currency withdrawals are disrupting Palestinian banking operations, forcing banks to struggle with liquidity and vault capacity. Markets/FX: Europe opened lower as US-Iran tensions pushed Brent above $90; South Africa’s rand held steady ahead of its central bank decision. Banking Leadership Moves: UOB Private Bank appointed Judy Chan to lead Hong Kong private wealth, while PNG’s TISA Bank named Luke Kaul as CEO.