The latest Market Talks covering Financial Services. Exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

0752 GMT - Hannover Re's new profit guidance for 2025 is slightly below consensus expectations but the company tends to set its targets conservatively as seen in prior years, RBC Capital Markets' Derald Goh and Sarah Chong say in a research note. The German reinsurer's increase to its 2024 profit guidance, to around 2.3 billion euros from at least 2.1 billion euros previously brings it in line with consensus expectations, RBC says. Meanwhile, initial guidance for 2025 of around 2.4 billion euros is below both consensus and RBC's estimates of 2.5 billion, the analysts say. In the third quarter, operating profit was weaker than expected, but this was compensated by lower taxes, according to RBC. (adria.calatayud@wsj.com)

0745 GMT - Euronext has a well diversified business mix which can benefit from multiple growth drivers, JPMorgan analysts say after the stock exchange's investor day on Friday. Euronext chose not to quantify the contribution to its revenue and Ebitda growth targets by individual sectors or products, highlighting instead the synergies and opportunities that the investments of the previous years and the integration of Borsa Italiana have generated, JPM says. "Whilst the official targets might seem unambitious, we think that from the investor day emerged a substantially more bullish message, in particular with a more pronounced focus on top-line growth, which over time could result in a higher valuation," the analysts say. It might take some time for the company to convince investors of its improved growth trajectory, they say. (nina.kienle@wsj.com)

0718 GMT - DBS Group and Alliance Bank Malaysia could benefit from a potential acquisition, TA Securities analyst Li Hsia Wong writes. A media report said that DBS plans to expand in Malaysia through potentially acquiring stakes in local banks, including absorbing Temasek's 29.1% stake in Alliance Bank. The analyst notes that Alliance Bank could gain from DBS's expertise in enhancing its corporate and wholesale banking segments. The analyst adds that the move could provide DBS a "ready and established platform in Malaysia, a market with promising growth potential."(amanda.lee@wsj.com)

0616 GMT - State Bank of India's outlook looks steady, after delivering solid 2Q FY 2025 performance, Nomura analysts write in a note. The bank's profit after tax at INR183.3 billion beat Nomura's estimates on higher treasury profit, higher recoveries from written-off loans and lower operating expenses. Its outlook will likely be supported by the bank's recent 30 bps increase in one-year marginal cost of funds based lending rate in 1H, they add. Nomura analysts say State Bank of India is among the best-placed in the sector despite challenges related to asset quality, deposit, regulatory and rate-cuts. Nomura raises its target price for the stock to INR1,050 from INR980 and maintains a buy rating. Shares are last at INR853.00.(amanda.lee@wsj.com)

0353 GMT - ANZ keeps its bear at Morgan Stanley on the earnings headwinds hitting the Australian bank over the next couple of years. Analyst Richard E. Wiles reckons that migration and integration costs for the lender's ANZ Plus platform and its Suncorp Bank acquisition will be higher over the near-term. Meaningful financial benefits from the investment are unlikely until fiscal 2027, he adds. Wiles tells clients in a note that ANZ may have to offer retail customers higher rates on its digital account to encourage migration. MS raises its target price 1.1% to A$27.80 and keeps an underweight rating on the stock, which is down 0.4% at A$32.00. (stuart.condie@wsj.com)

0344 GMT - DBS Group's potential entry into Alliance Bank Malaysia appears to be a sensible deal, as it could help the Singapore bank fill a gap in its Asean presence, RHB IB analysts Nabil Thoo and David Chong say in a note. A media report last week said that DBS plans to expand in Malaysia, potentially by acquiring stakes in local banks, including the 29.1% stake in Alliance held by Singapore's state investment company, Temasek. Alliance could also benefit from DBS's reach, clientele and banking expertise, while investors are expected to react positively to this development, they say. RHB raises Alliance Bank's target price to MYR5.50 from MYR5.10, and keeps a buy rating. Shares are 6.7% higher at MYR4.80. (yingxian.wong@wsj.com)

0323 GMT - United Overseas Bank's shares have limited potential upside, RHB Research analysts write in a note while maintaining a neutral rating on the stock. The Singapore lender reported a positive set of results for 3Q, with capital as a key highlight, they say. UOB's fully loaded CET-1 ratio is now in line with its peers, the analysts note. Thus, capital management initiatives are in play and the market has reacted positively to this, with the stock rising 7% last Friday after earnings, they say. RHB raises its target price on UOB to S$35.60 from S$32.00 and upgrades its earnings forecasts. Shares are 1.8% higher at S$36.34. (amanda.lee@wsj.com)

0252 GMT - UOB appears optimistic about its earnings outlook, according to the management, OCBC Investment Research's Carmen Lee says in a research report. For 2025, management is guiding for high single-digit loan growth, double-digit fee growth and cost-to-income ratio to stay at around 41%-42%, the Singapore strategist notes. Management has also guided for 2024 credit costs to stay within its guidance of 25-30 bps, the strategist says. Moreover, given UOB's strong capital position, management is exploring capital management initiatives, the strategist adds. OCBC raises the stock's fair value estimate to S$37.50 from S$33.50 with an unchanged buy rating. Shares are 2.1% higher at S$36.43. (ronnie.harui@wsj.com)

2350 GMT - ANZ's bear at Macquarie reckons that the Australian bank cannot sustain its current dividend yield. Macquarie's analysts tell clients in a note that a payout ratio of 60%-65% looks sustainable, compared with ANZ's FY 2024 ratio of about 75%. They point out that ANZ isn't the only bank in this position, with its Australian peers also looking expensive and channeling an unsustainable amount of earnings into dividends. They add that ANZ is likely to continue trading at a significant discount to rivals Westpac and NAB due to risks surrounding its tech migration and the integration of its Suncorp Bank acquisition. Macquarie keeps an underperform rating and A$26.50 target price on the stock, which is up 0.9% at A$32.415. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

November 11, 2024 04:20 ET (09:20 GMT)

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