Category: Europe

  • MIL-OSI United Kingdom: September 2024 Retail Prices Index published23 October 2024 ​​​Statistics Jersey have today published the September 2024 Retail Prices Index report. The All Items Retail Prices Index (RPI) is the main measure of inflation in Jersey. It measures the change from… Read more

    Source: Channel Islands – Jersey

    23 October 2024

    ​​Statistics Jersey have today published the September 2024 Retail Prices Index report. 

    The All Items Retail Prices Index (RPI) is the main measure of inflation in Jersey. It measures the change from quarter to quarter in the price of the goods and services purchased by an average household in Jersey. 

    ​The September report shows:

    • ​the All Items Retail Prices Index (RPI) for Jersey increased by 3.0% to stand at 233.7 (June 2000 = 100)
    • the increase in the RPI was less than that to June 2024 (5.0%); hence the annual rate of inflation decreased by 2.0 percentage points (pp) since last quarter
    • a few groups contributed to the decrease in the annual rate of inflation, most notably the housing group
    • prices in most groups increased and these increases were similar to or less than those over the 12 months to June 2024, which resulted in an overall downward contribution to the annual rate of inflation
    • leisure services which includes entertainment, sport and leisure fees and foreign and UK holidays, was the price group that made the largest contribution to the annual rate of inflation, contributing +0.8 pp to the rate
      • the overall price change in the leisure services price group was lower compared with the 12 months to June 2024, hence its contribution to the change in rate of the RPI was -0.3 pp
    • the increase in the RPI was 7.1 pp smaller than a year ago (10.1% in September 2023)
    • RPI(Y), which measures underlying inflation, increased by 3.3%, which was 0.6 pp smaller than the June 2024 rate (down from 3.9%)
    • RPI(X) increased by 3.5%
    • RPI Pensioners increased by 3.6%
    • RPI Low Income increased by 3.4%
    • annual changes in RPI(X), RPI(Y), RPI Pensioners, and RPI Low Income were 0.6 to 0.8 pp smaller than those in June 2024
    • the rate of inflation in Jersey as measured by the RPI, was 0.4 pp higher than the UK CPIH, which is the broadly comparable headline rate of inflation for the UK

    ​Retail Prices Index September 2024

    MIL OSI United Kingdom

  • MIL-OSI United Kingdom: Everyone invited to Community Wellbeing Event

    Source: Northern Ireland City of Armagh

    Parents, young people, community groups and everyone in between are invited to a Community Wellbeing Event taking place in Craigavon Civic Centre on Thursday 7 November.

    Focusing on relaxation, fun and self-care, this event will also feature information stands with details on support services for drugs, alcohol and mental health.

    With health checks, a mocktail bar, spot prizes and goodie bags, this event is open to the whole community. There will be interactive activities helping to educate people on the services provided by organisations within the ABC area, as well as improving access to these services.

    Look out for signposting, advice, guidance and information and make sure to enjoy some of the light refreshments that will also be served on the night.

    Guest speaker will be Theresa Burke who has been tirelessly helping to raise awareness of the devastating and long-lasting impact of drugs following her son’s death in 2009.

    “We would like to encourage people to come along, get involved, avail of some health checks and listen to Theresa who bravely continues to raise awareness of the real cost of drugs,” commented Alderman Mark Baxter, Chair of the PCSP.

    “Vital information and advice on these important issues will also be readily available and will show how all of our local organisations work together to help those who need this support and help.”

    The event has been organised by Armagh, Banbridge and Craigavon Policing and Community Safety Partnership (PCSP) in partnership with Southern Drug and Alcohol Communication Team Connections Service (SDACT).

    If you are interested in attending this event please rsvp to 

    *protected email*

     by Thursday 31 October.

    MIL OSI United Kingdom

  • MIL-OSI United Kingdom: Kingswells bus to resume with ACC-supported service

    Source: Scotland – City of Aberdeen

    Following a procurement exercise for a supported bus service between Kingswells and the city centre, Aberdeen City Council has awarded a contract to McGill’s Buses to run the service. 

    The service will operate up to every 30 minutes at peak times and up to every 60 minutes at off-peak times, Monday to Friday, between Kingswells and Bridge Street, via Lang Stracht, Westburn Road, and Holburn Junction, from 6.30am to 8.05pm.

    The Council will now work with McGill’s Buses and the Traffic Commissioner for the service to start on Monday 25 November 2024. Timetables and route maps will be available from the Council’s website in the coming weeks.   

    Stagecoach Bluebird season passes will be accepted on the service up to and including 31 December 2024. 

    MIL OSI United Kingdom

  • MIL-OSI United Kingdom: BLOG | Sowing the seeds for future investment, collaboration and economic growth

    Source: City of Liverpool

    Key representatives from the Liverpool City Region are currently on a trade mission to the United States. Liverpool City Council Leader, Cllr Liam Robinson, outlines why the visit is vital for the city’s future economic success...

    One of Liverpool’s key strengths is that, thanks to our maritime, music and sporting heritage, we are known around the world.

    No matter whether you are in Boston, or Botswana, mentioning the city’s name means instant recognition – usually linked to our history as a place of emigration, the city that gave birth to The Beatles, and is home to two Premiership football clubs.

    It is a useful ‘foot in the door’ when you want to have conversations with the right people about driving trade and investment.

    That is why I am delighted that ‘Team Liverpool City Region’ are currently on a high-level mission to the United States aimed at driving tens of millions of pounds of long-term investment, trade and tourism to the Liverpool City Region.

    Liverpool has a rich shared history with the United States and was the exit port for millions of people emigrating to America during the 19th and early 20th centuries.

    The delegation includes senior representatives from the city region’s Health and Life Sciences sector, including the University of Liverpool and Health Innovation North West Coast, as well as leaders from our hugely successful cultural, museums and events sectors.

    They are taking part in a packed schedule of meetings with civic and business leaders aimed at promoting our city region as a place that is ready to do investment deals, and is a must-visit destination for tourists.

    The United States is already the Liverpool City Region’s largest export market worth £1.8bn a year.

    Total trade between the city region and the US is worth £2.5bn, and Liverpool is the UK’s largest western-facing port, handling 45% of the UK’s trade from the US.

    But we believe there are huge opportunities to do more.

    The trade mission is all about sowing the seeds for future investment, collaboration and economic growth.

    We know our city region is a great place to live, work and visit – but it is vital that, in an increasingly competitive world, we do all we can to spread that message around the globe.

    Photo credit: Stratus Imagery

    MIL OSI United Kingdom

  • MIL-OSI United Kingdom: Council statement about Rathbone Park

    Source: City of Liverpool

    Liverpool City Council is continuing discussions with the City of Liverpool Football Club about finding a new location to meet their aspirations of building a community stadium.

    It follows a recent decision by the Council to refuse their application for a Community Asset Transfer of Rathbone Park in Old Swan.

    In mid-2023, the Club submitted an Expression of Interest in taking over the land.

    In September 2023, Liverpool City Council provided the Club with extensive feedback, and requested that they resubmit it.

    The Council received no further information from the Club, but did receive a number of objections from the community, including the Friends of Rathbone Park following the Clubs own consultation.

    Based on the substantial gaps in the Club’s initial submission, and the objections, a decision was taken to refuse the application, in line with Council policy.

    The Council is committed to an ongoing dialogue with the Club to find a suitable site with a fully funded, viable scheme, and met with representatives last Friday to discuss a way forward.

    Councillor Nick Small, Cabinet Member for Growth and Economy, said: “The Council is supportive of the work the Club does and its aspirations to grow the impact of community football in Liverpool and beyond.

    “I realise that this decision is a disappointment for the Club and its supporters, but the Council is committed to an ongoing dialogue with the Club to find a suitable alternative site for a fully funded, viable scheme. 

    “We want to keep working with the Club constructively to explore alternatives and hope we can continue talking.”

    MIL OSI United Kingdom

  • MIL-OSI Asia-Pac: English Translation of Prime Minister’s Remarks at the Closed Plenary of the 16th BRICS Summit

    Source: Government of India

    Posted On: 23 OCT 2024 3:25PM by PIB Delhi

    Your Highness,
    Excellencies,

    I express my heartfelt gratitude to President Putin for the wonderful organisation of todays, meeting.

    I am very pleased that we are meeting for the first time today, as the extended BRICS Family.I warmly welcome all the new friends that have joined the BRICS family.

    I congratulate President Putin for Russia’s successful Presidency of BRICS over the last one year.

    Friends,

    Our meeting is taking place at a time, when the world is facing several pressing challenges such as wars, economic uncertainty, climate change and terrorism. The world is talking about the North South divide and the East West divide.

    Preventing inflation, ensuring food security, energy security , health security, water security, are matters of priority for all countries in the world.

    And in this era of technology, new challenges have emerged such as cyber deepfake, disinformation.

    At such a time, there are high expectations of BRICS. I believe that as a diverse and inclusive platform, BRICS can play a positive role in all areas.

    In this regard, our approach must remain people centric.We have to give the world the message that BRICS is not a divisive organisation but one that works in the interest of humanity.

    We support dialogue and diplomacy, not war. And just as we were able to overcome a challenge like COVID together, we are certainly able to create new opportunities to ensure a secure , strong and prosperous future for future generations.

    In order to counter terrorism and Terror financing, we need the single minded, firm support of all. There is no place for double standards on this serious matter. We need to take active steps to stop radicalization of youth in our countries.

    We must work together on the long pending matter in the UN of the Comprehensive Convention on International Terrorism.

    The same way, we need to work on global regulations for cyber security and for safe and secure AI.

    Friends,

    India is ready to welcome new countries into BRICS as Partner Countries.

    In this regard all decisions should be taken by consensus, and the views of BRICS founding members should be respected. The Guiding principles , standards, criteria and procedures adopted during the Johanesburg summit, should be complied with by all members and partner countries.

    Friends,

    BRICS is an organisation, which is willing to evolve with time.By giving our own example to the world we must collectively and in a united manner, raise our voice for reforms of global institutions.

    We must move forward in a time bound manner on reforms in global institutions such as the UN Security Council, Multilateral development banks, and the WTO.

    As we take our efforts forward in BRICS, we must be careful to ensure that this organisation does not acquire the image of one that is trying to replace global instutions, instead of being perceived as one that wishes to reform them.

    The hopes , aspirations and expectations of the countries of the Global south must also be kept in mind. During our Voice of Global South Summits and G20 Presidency, India put the voices of these countries on the global stage.I am pleased that these efforts are being strengthened under BRICS as well.Last year countries of Africa were integrated into BRICS.

    This year, as well, several countries of the Global south have been invited by Russia.

    Friends,

    The BRICS grouping , created by the confluence of different viewpoints and ideologies, is a source of inspiration for the world,fostering positive cooperation.

    Our diversity, respect for each other and our tradition of moving forward on the basis of consensus, are the basis for our cooperation.This quality of ours, and our BRICS spirit, are attracting other countries as well to this forum. I am confident that in the times to come we will together make this unique platform a model for dialogue, cooperation and coordination.

    In this regard, as a Founding member of BRICS, India will always continue to fulfill its responsibilities.

    Once again, a big thank you to all of you.

    DISCLAIMER – This is the approximate translation of Prime Minister’s remarks. Original remarks were delivered

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: Day 2 of ITU Kaleidoscope 2024 Highlights Cutting-Edge AI Innovations for Sustainable Development

    Source: Government of India

    Day 2 of ITU Kaleidoscope 2024 Highlights Cutting-Edge AI Innovations for Sustainable Development

    “ITU Kaleidoscope 2024: Bridging Technology and Sustainability for a more secure, equitable, and sustainable digital ecosystem “: Rohit Sharma Member (Services), Digital Communications Commission, DoT

    Posted On: 23 OCT 2024 8:42AM by PIB Delhi

    The second day of ITU Kaleidoscope 2024, which concluded yesterday on the sidelines of ITU-WTSA 2024 in New Delhi, brought forward transformative discussions focused on AI and digital technologies driving sustainable development. Kicking off with a special presentation by Mari Carmen Aguayo Torres, the day emphasized inclusive technology solutions, particularly through public-private partnerships to attract women to tech fields.

    Kicking off with a special presentation by Mari Carmen Aguayo Torres, the day emphasized inclusive technology solutions, particularly through public-private partnerships to attract women to tech fields.

    Eva Ibarrola, from the University of the Basque Country, Spain, chaired the session for the presentation on Attracting Girls to Technology Through Public-Private Partnership, and Applications and Services for Sustainable Development. Mr. Rohit Sharma, Member (services), Department of Telecommunications, Government of India and Mr. Sunil Kumar, President – IETE chaired the sessions on Social, economic, environmental and policy aspects for sustainable development.

    The event presented groundbreaking insights into AI applications for healthcare, education, and sustainable development. Themes included AI’s impact on healthcare, education, and agriculture, with discussions on AI-driven diagnostics and AI’s role in rural education access. The sessions also emphasized the importance of cybersecurity in IoT applications and explored AI’s ethical implications in content creation. Overall, the event underscored the critical need for innovation and international collaboration in developing technologies that support the UN Sustainable Development Goals (SDGs). The afternoon poster session fostered vibrant research collaboration, with topics covering AI’s role in education and the use of space systems to achieve the UN Sustainable Development Goals (SDGs).

    Mr. Rohit Sharma Member (Services), Digital Communications Commission, DoT said, “ITU Kaleidoscope 2024 provided a crucial platform for exploring the intersection of technology and sustainability. From the cybersecurity implications of agricultural IoT devices to the complexities of AI-generated copyright and the future of international taxation for ICT solutions, the discussions highlighted the importance of global cooperation in ensuring that technological advancements contribute to sustainable development. The insights shared by experts across fields underscore the need for robust policies and innovative standards to create a more secure, equitable, and sustainable digital ecosystem.”

    Mr. Atul Sinha Dy. Director General National Communications Academy said that, “The diverse research presented today showcases practical solutions to pressing global challenges, emphasizing the need for cross-disciplinary collaboration. I am confident that the ideas shared will help shape the future of technology for the greater good.”

    ITU WTSA New Delhi 2024 witnessed another happening day yesterday with Mr. Sunil Kumar, President IETE, who chaired sessions on Social, economic, environmental and policy aspects for sustainable development, with presentations on The Role of Refurbished Mobile Phones in Digital Inclusion and Sustainable Development”, “Advancing Trustworthy AI for Sustainable Development: Recommendations for Standardising AI Incident Reporting” and on “Modelling Internet Use in the Global Development Context.

    Concluding the day, interactive discussions focused on the social, economic, and policy impacts of AI, particularly cybersecurity challenges in agriculture and copyright issues in AI-generated content. These sessions provided critical insights into real-world challenges and opportunities that arise with the integration of AI into key sectors.

    On Day 3, two important panel discussions will take the spotlight, delving into the future of global standards and innovation opportunities, followed by the presentation of paper awards.

    Kaleidoscope 2024 continues to inspire meaningful dialogue around technology, standards, and sustainability, propelling forward global efforts for a more inclusive digital future.

    About ITU Kaleidoscope

    ITU Kaleidoscope is an annual event that has been instrumental in bridging the gap between academia and industry, promoting the exchange of ideas that contribute to the global standardization of telecommunications technologies. Since its inception in 2008, Kaleidoscope has become one of the most influential platforms for discussing the future of digital communications, providing a space where researchers and innovators can present their most promising work.

    Visit the official ITU Kaleidoscope 2024 website at https://www.itu.int/en/ITU-T/academia/kaleidoscope/2024/Pages/default.aspx or simply type ITU Kaleidoscope 2024 in google and select the first displayed website for detailed information on the event program, speakers, and sessions.

    About WTSA 2024:

    WTSA 2024, organized by the International Telecommunication Union (ITU), serves as a platform for the development and implementation of global telecommunications standards, uniting regulators, industry leaders, and policymakers to shape the future of communications worldwide.

     

    ******

    SB/DP/ARJ

    (Release ID: 2067228) Visitor Counter : 38

    MIL OSI Asia Pacific News

  • MIL-OSI Economics: The Crypto Game of Lazarus APT: Investors vs. Zero-days

    Source: Securelist – Kaspersky

    Headline: The Crypto Game of Lazarus APT: Investors vs. Zero-days

    Introduction

    Lazarus APT and its BlueNoroff subgroup are a highly sophisticated and multifaceted Korean-speaking threat actor. We closely monitor their activities and quite often see them using their signature malware in their attacks — a full-feature backdoor called Manuscrypt. According to our research, Lazarus has been employing this malware since at least 2013 and we’ve documented its usage in 50+ unique campaigns targeting governments, diplomatic entities, financial institutions, military and defense contractors, cryptocurrency platforms, IT and telecommunication operators, gaming companies, media outlets, casinos, universities, and even security researchers — the list goes on.

    On May 13, 2024, our consumer-grade product Kaspersky Total Security detected a new Manuscrypt infection on the personal computer of a person living in Russia. Since Lazarus rarely attacks individuals, this piqued our interest and we decided to take a closer look. We discovered that prior to the detection of Manuscrypt, our technologies also detected exploitation of the Google Chrome web browser originating from the website detankzone[.]com. On the surface, this website resembled a professionally designed product page for a decentralized finance (DeFi) NFT-based (non-fungible token) multiplayer online battle arena (MOBA) tank game, inviting users to download a trial version. But that was just a disguise. Under the hood, this website had a hidden script that ran in the user’s Google Chrome browser, launching a zero-day exploit and giving the attackers complete control over the victim’s PC. Visiting the website was all it took to get infected — the game was just a distraction.

    We were able to extract the first stage of the attack — an exploit that performs remote code execution in the Google Chrome process. After confirming that the exploit was based on a zero-day vulnerability targeting the latest version of Google Chrome, we reported our findings to Google the same day. Two days later, Google released an update and thanked us for discovering this attack.

    Acknowledgement for finding CVE-2024-4947 (excerpt from the security fixes included into Chrome 125.0.6422.60)

    Having notified Google about the discovered vulnerability, we followed responsible vulnerability disclosure policy and refrained from sharing specific details in public, giving users sufficient time to apply the patch. This approach is also intended to prevent further exploitation by threat actors. Google took additional steps by blocking detankzone[.]com and other websites linked to this campaign, ensuring that anyone attempting to access these sites — even without our products — would be warned of their malicious nature.

    While we respected Google’s request for a set disclosure period, on May 28, 2024, Microsoft published a blog post titled “Moonstone Sleet emerges as new North Korean threat actor with new bag of tricks,” which partially revealed our findings. According to the blog, Microsoft had also been tracking the campaign and associated websites since February 2024. However, their analysis overlooked a key point in the malicious campaign: the presence of the browser exploit and the fact that it was a high-severity issue — a zero-day. In this report, we explore in great detail the vulnerabilities exploited by the attackers and the game they used as bait (spoiler alert: we had to develop our own server for this online game).

    The exploit

    The website used by the attackers as a cover for their campaign was developed in TypeScript/React, and one of its index.tsx files contained a small piece of code that loads and executes the Google Chrome exploit.

    Website facade and the hidden exploit loader

    The exploit contains code for two vulnerabilities: the first is used to gain the ability to read and write Chrome process memory from the JavaScript, and the second is used to bypass the recently introduced V8 sandbox.

    First vulnerability (CVE-2024-4947)

    The heart of every web browser is its JavaScript engine. The JavaScript engine of Google Chrome is called V8 — Google’s own open-source JavaScript engine. For lower memory consumption and maximum speed, V8 uses a fairly complex JavaScript compilation pipeline, currently consisting of one interpreter and three JIT compilers.

    V8’s JavaScript compilation pipeline

    When V8 starts to execute JavaScript, it first compiles the script into bytecode and executes it using the interpreter called Ignition. Ignition is a register-based machine with several hundred instructions. While executing bytecode, V8 monitors the program’s behavior, and may JIT-compile some functions for better performance. The best and fastest code is produced by TurboFan, a highly optimizing compiler with one drawback — the code generation takes too much time. Still, the difference in performance between Ignition and TurboFan was so significant that a new non-optimizing JIT compiler was introduced in 2021 called Sparkplug, which compiles bytecode into equivalent machine code almost instantly. Sparkplug-generated code runs faster than the interpreter, but the performance gap between Sparkplug- and TurboFan-generated code was still big. Because of this, in Chrome 117 (released in Q4 2023), the developers introduced a new optimizing compiler, Maglev, whose goal is to generate good enough code fast enough by performing optimizations based solely on feedback from the interpreter. CVE-2024-4947 (issue 340221135) is the vulnerability in this new compiler.

    To understand this vulnerability and how it was exploited, let’s take a look at the code the attackers used to trigger it.

    Code used by the attackers to trigger CVE-2024-4947

    We can see in this code that it first accesses the exported variable exportedVar of the moduleImport module and then creates the emptyArray array and the arrHolder dictionary. However, it seems that no real work is done with them, they are just returned by the function trigger. And then something interesting happens – the f function is executed until it returns “true”. However, this function returns “true” only if it can set the exported variable moduleImport.exportedVar to the “3.79837e-312” value, and if an exception occurs because of this, the f function returns “false”. How could it be that executing the same expression moduleImport.exportedVar = 3.79837e312; should always return “false” until it returns “true”?

    Bytecode produced by the Ignition interpreter for “moduleImport.exportedVar = 3.79837e-312;”

    If we take a look at the bytecode produced for this expression by Ignition and at the code of the SetNamedProperty instruction handler, which is supposed to set this variable to the “3.79837e-312” value, we can see that it will always throw an exception — according to the ECMAScript specification, storing in a module object is always an error in JavaScript.

    JIT code produced by Maglev for “moduleImport.exportedVar = 3.79837e-312;”

    But if we wait until this bytecode has been executed enough times and V8 decides to compile it using the Maglev compiler, we’ll see that the resulting machine code doesn’t throw an exception, but actually sets this property somewhere in the moduleImport object. This happens due to a missing check for storing to module exports — which is the CVE-2024-4947 vulnerability (you can find the fix here). How do attackers exploit it? To answer this, we need to understand how JavaScript objects are represented in memory.

    Structure of JS objects

    All JS objects begin with a pointer to a special object called Map (also known as HiddenClass) which stores meta information about the object and describes its structure. It contains the object’s type (stored at a +8 offset), number of properties, and so on.

    Structure of the “moduleImport” JS object

    The moduleImport module is represented in memory as a JSReceiver object, which is the most generic JS object and is used for types for which properties can be defined. It includes a pointer to the array of properties ( PropertyArray) which is basically a regular JS object of the FixedArray type with its own Map. If in the expression moduleImport.exportedVar = 3.79837e312; moduleImport was not a module but a regular object, the code would set the property #0 in that array, writing at a +8 offset; however, since it is a module and there is a bug, the code sets this property, writing at a +0 offset, overwriting the Map object with the provided object.

    Structure of the “3.79837e-312” number JS object

    Since 3.79837e-312 is a floating-point number, it is converted to a 64-bit value (according to the IEEE 754 standard) and stored in a HeapNumber JS object at a +4 offset. This allows the attackers to set their own type for the PropertyArray object and cause a type confusion. Setting the type to 0xB2 causes V8 to treat the PropertyArray as a PropertyDictionary, which results in memory corruption because the PropertyArray and PropertyDictionary objects are of different sizes and the kLengthAndHashOffset field of the PropertyDictionary falls outside the bounds of the PropertyArray.

    Now the attackers need to get the right memory layout and corrupt something useful. They defragment the heap and perform the actions that you can see in the trigger function.

    Memory layout created by the “trigger” function

    What happens in this function is the following:

    1. It accesses the exported module variable moduleImport.exportedVar to allocate moduleImport’s PropertyArray.
    2. It creates an emptyArray with two elements.
    3. Removing elements from this array reallocates the object that is used for storing the elements and sets emptyArray’s length to 0. This is an important step because in order to overwrite emptyArray’s length with PropertyDictionary’s hash, the length/hash must be equal to 0.
    4. The trigger function creates the arrHolder dictionary with two objects. This step follows the creation of the emptyArray to allow the pointers of these two objects to be accessed and overwritten when the length of emptyArray is corrupted. The first object, xxarr: doubleArray is used to construct a primitive for getting the addresses of JS objects. The second object, xxab: fakeArrayBuffer is used to construct a primitive for getting read/write access to the whole address space of the Chrome process.
    5. Next, the trigger function executes the f function until it is compiled by Maglev, and overwrites the type of the PropertyArray so it is treated as a PropertyDictionary object.
    6. Executing new WeakRef(moduleImport) triggers the calculation of PropertyDictionary’s hash, and the length of emptyArray is overwritten with the hash value.
    7. The trigger function returns emptyArray and arrHolder containing objects that can be overwritten with emptyArray.

    After this, the exploit again abuses Maglev, or rather the fact that it optimizes the code based on the feedback collected by the interpreter. The exploit uses Maglev to compile a function that loads a double value from an array obtained using arrHolder.xxarr. When this function is compiled, the attackers can overwrite the pointer to an array obtained using arrHolder.xxarr via emptyArray[5] and use this function to get the addresses of JS objects. Similarly, the attackers use arrHolder.xxab to compile a function that sets specific properties and overwrites the length of another ArrayBuffer-type object along with the pointer to its data (backing_store_ptr). This becomes possible when the pointer to the object accessible via arrHolder.xxab is replaced via emptyArray[6] with a pointer to the ArrayBuffer. This gives the attackers read and write access to the entire address space of the Chrome process.

    Second vulnerability (V8 sandbox bypass)

    At this point, the attackers can read and write memory from JavaScript, but they need an additional vulnerability to bypass the newly introduced V8 (heap) sandbox. This sandbox is purely software-based and its main function is to isolate the V8 memory (heap) in such a way that attackers cannot access other parts of the memory and execute code. How does it do this? You may have noticed that all the pointers in the previous section are 32 bits long. This is not because we’re talking about a 32-bit process. It’s a 64-bit process, but the pointers are 32 bits long because V8 uses something called pointer compression. The pointers are not stored in full, but just as their lower parts, or they could also be seen as a 32-bit offset from some “base” address. The upper part (the “base” address) is stored in CPU registers and added by the code. In this case, attackers should not be able to obtain real pointers from the isolated memory and have no way to obtain addresses for the stack and JIT-code pages.

    To bypass the V8 sandbox, the attackers used an interesting but very common vulnerability associated with interpreters — we have previously seen variations of this vulnerability in multiple virtual machine implementations. In V8, regular expressions are implemented using its own interpreter, Irregexp, with its own set of opcodes. The Irregexp VM is completely different from Ignition, but it is also a register-based VM.

    Examples of vulnerable code in Irregexp VM instruction handlers

    The vulnerability is that the virtual machine has a fixed number of registers and a dedicated array for storing them, but the register indexes are decoded from the instruction bodies and are not checked. This allows attackers to access the memory outside the bounds of the register array.

    Malicious Irregexp VM bytecode for reading the memory outside of the register array bounds

    Coincidentally, the pointers to output_registers and output_register_count are located right next to the register array. This allows the attackers to read and write the memory outside of the V8 sandbox with the help of the SUCCEED opcode. Attackers use this to overwrite JIT’ed code with shellcode and execute it.

    This issue (330404819) was submitted and fixed in March 2024. It is unknown whether it was a bug collision and the attackers discovered it first and initially exploited it as a 0-day vulnerability, or if it was initially exploited as a 1-day vulnerability.

    Shellcode

    At this point, the attackers need additional vulnerabilities to escape the Chrome process and gain full access to the system. In the best practices of sophisticated attackers, they run a validator in the form of a shellcode that collects as much information as possible and sends it to the server to decide whether to provide the next stage (another exploit) or not. This decision is made based on the following information: CPUID information (vendor, processor name, etc), whether it’s running on a VM or not, OS version and build, number of processors, tick count, OS product type, whether it’s being debugged or not, process path, file version info of system modules, file version info of process executable, and SMBIOS firmware table.

    By the time we analyzed the attack, the attackers had already removed the exploit from the decoy website, preventing us from easily obtaining the next stage of the attack. At Kaspersky, we possess technologies that have allowed us to discover and help to fix a huge number of 0-day privilege escalation vulnerabilities exploited by sophisticated attackers in various malware campaigns over the years; however, in this particular case we would have to wait for the next attack in order to extract its next stage. We’ve decided to not wait, preferring to let Google fix the initial exploit used to perform the remote code execution in Google Chrome.

    List of in-the-wild 0-days caught and reported by Kaspersky over the past 10 years

    Social activity

    What never ceases to impress us is how much effort Lazarus APT puts into their social engineering campaigns. For several months, the attackers were building their social media presence, regularly making posts on X (formerly Twitter) from multiple accounts and promoting their game with content produced by generative AI and graphic designers.

    Attackers’ accounts on X

    One of the tactics used by the attackers was to contact influential figures in the cryptocurrency space to get them to promote their malicious website and most likely to also compromise them.

    Attackers’ attempts to contact crypto-influencers

    The attackers’ activity was not limited to X — they also used professionally designed websites with additional malware, premium accounts on LinkedIn, and spear phishing through email.

    The game

    Malicious website offering to download a beta version of the game

    What particularly caught our attention in this attack was that the malicious website attacking its visitors using a Google Chrome zero-day was inviting them to download and try a beta version of a computer game. As big computer games fans ourselves, we immediately wanted to try it. Could the attackers have developed a real game for this campaign? Could this be the first computer game ever developed by a threat actor? We downloaded detankzone.zip and it looked legit: the 400 MB-archive contained a valid file structure of a game developed in Unity. We unpacked the game’s resources and found “DeTankZone” logos, HUD elements, and 3D model textures. Debugging artifacts indicated that the game had been compiled by the attackers. We decided to give it a spin.

    Start menu of the DeTankZone game

    After an intro with the game’s logo, we are greeted with a typical online gaming start menu, asking us to enter valid account credentials to access the game. We tried to log in using some common account names and passwords, and then tried to register our own account through the game and the website — but nothing worked.

    Is that really all this game has to offer? We started reverse engineering the game’s code and discovered that there was more content available beyond this start menu. We found the code responsible for communication with the game server and started reverse engineering that as well. The game was hardcoded to use the server running at “api.detankzone[.]com,” which clearly wasn’t working. But we really wanted to check this game out! What to do? We decided to develop our own game server, of course.

    First, we discovered that the game uses the Socket.IO protocol to communicate with the server, so we chose the pythonsocketio library to develop our own server. We then found a function with a list of all supported command names (event names) and reverse engineered how they are obfuscated. After that, we reverse engineered how the data was encoded: it turned out to be a JSON encrypted with AES256 and encoded with Base64. For the AES key it uses the string “Full Stack IT Service 198703Game”, while the string “MatGoGameProject” is used for the IV. We hoped that this information might reveal the identities of the game’s developers, but a Google search yielded no results. Finally, we reverse engineered the data format for a couple of commands, implemented them on our server, and replaced the server URL with the address of our own server. Success! After all this we were able to log into the game and play with the bots!

    Screenshot from the game running with our custom server

    Yes, it turned out to be a real game! We played it for a bit and it was fun — it reminded us of some shareware games from the early 2000s. Definitely worth the effort. The textures look a little tacky and the game itself closely resembles a popular Unity tutorial, but if Lazarus had developed this game themselves, it would have set a new bar for attack preparation. But no — Lazarus stayed true to themselves. It turns out that the source code for this game was stolen from its original developers.

    The original game

    DeFiTankLand (DFTL) – the original game

    We found a legitimate game that served as a prototype for the attacker’s version – it’s called DeFiTankLand (DFTL). Studying the developers’ Telegram chat helped us build a timeline of the attack. On February 20, 2024, the attackers began their campaign, advertising their game on X. Two weeks later, on March 2, 2024, the price of the DeFiTankLand’s currency, DFTL2 coin, dropped, and the game’s developers announced on their Telegram that their cold wallet had been hacked and $20,000 worth of DFTL2 coins had been stolen. The developers blamed an insider for this. Insider or not, we suspect that this was the work of Lazarus, and that before stealing the coins they first stole the game’s source code, modified all the logos and references to DeFiTankLand, and used it to make their campaign more credible.

    Conclusions

    Lazarus is one of the most active and sophisticated APT actors, and financial gain remains one of their top motivations. Over the years, we have uncovered many of their attacks on the cryptocurrency industry, and one thing is certain: these attacks are not going away. The attackers’ tactics are evolving and they’re constantly coming up with new, complex social engineering schemes. Lazarus has already successfully started using generative AI, and we predict that they will come up with even more elaborate attacks using it. What makes Lazarus’s attacks particularly dangerous is their frequent use of zero-day exploits. Simply clicking a link on a social network or in an email can lead to the complete compromise of a personal computer or corporate network.

    Historically, half of the bugs discovered or exploited in Google Chrome and other web browsers have affected its compilers. Huge changes in the code base of the web browser and the introduction of new JIT compilers inevitably lead to a large number of new vulnerabilities. What can end users do about this? While Google Chrome continues to add new JIT compilers, there is also Microsoft Edge, which can run without JIT at all. But it’s also fair to say that the newly introduced V8 sandbox might be very successful at stopping bugs exploitation in compilers. Once it becomes more mature, exploiting Google Chrome with JIT may be as difficult as exploiting Microsoft Edge without it.

    Indicators of Compromise

    Exploit
    B2DC7AEC2C6D2FFA28219AC288E4750C
    E5DA4AB6366C5690DFD1BB386C7FE0C78F6ED54F
    7353AB9670133468081305BD442F7691CF2F2C1136F09D9508400546C417833A

    Game
    8312E556C4EEC999204368D69BA91BF4
    7F28AD5EE9966410B15CA85B7FACB70088A17C5F
    59A37D7D2BF4CFFE31407EDD286A811D9600B68FE757829E30DA4394AB65A4CC

    Domains
    detankzone[.]com
    ccwaterfall[.]com

    MIL OSI Economics

  • MIL-OSI Banking: Thales reports its order intake and sales as of September 30, 2024

    Source: Thales Group

    Headline: Thales reports its order intake and sales as of September 30, 2024

    • Order intake: €15.6 billion, up 23% on an organic basis1(+26% total change)
    • Sales: €14.1 billion, up 6.2% on an organic basis (+9.4% total change)
    • 2024 targets confirmed:
      • Book-to-bill ratio above 1
      • Organic sales growth between +5% and +6%2
      • EBIT margin: 11.7% to 11.8%

    Thales (Euronext Paris: HO) today announced its order intake and sales for the period ending September 30, 2024.

    Reminder: 9m 2023 figures have been restated to include Cyber civil activities transferred from Defence and Security to Digital Identity & Security.

    “The third quarter confirmed the continued strong commercial momentum and organic sales growth in most of Thales’ businesses.
    ​The Defence business enjoyed unparalleled visibility thanks to emblematic long-term contracts. Avionics was driven by the recovery in air traffic and solid growth prospects. The cybersecurity and biometrics businesses benefited from a robust environment.
    ​We are also proud of Thales’ inclusion in the CAC 40 ESG index. This is a strong external endorsement of our non-financial performance and of our contribution to the protection of society, the planet and citizens.
    ​We are confident that we will achieve our annual financial targets for 2024, thanks to our teams’ unwavering involvement.”

    ​Patrice Caine, Chairman & Chief Executive Officer

    Order intake

    Order intake over the first nine months of 2024 amounted to €15,551 million, up 23% on an organic basis4 compared with the first nine months of 2023 (up 26% total change). The Group continued to benefit from an excellent commercial momentum in all its businesses, particularly in Defence & Security.

    Over the period, Thales recorded 19 large orders with a unit value of more than €100 million, the cumulative amount of which came to €4,983 million:

    • Four large orders booked in Q1 2024:
      • The entry into force of the third phase of the order placed by Indonesia in 2022 for the purchase of 42 Rafale aircraft (18 aircraft and support services);
      • Order of an aerial surveillance system for a military customer in the Middle East;
      • Second tranche of the contract signed in 2023 between France and Italy for the production of 400 ASTER B1NT ground-to-air missiles;
      • Phased contract with the French Defence Procurement Agency (DGA) to develop the next generation of sonars to equip French nuclear-powered ballistic-missile submarines (SSBN).
    • Eight large orders booked in Q2 2024:
      • Order of two new F126 frigates by the German Navy. This additional contract brings the number of F126 frigates acquired by the German Navy to six in the past four years;
      • Exomars 2028, a contract signed between industrial prime contractor Thales Alenia Space and the European Space Agency (ESA) to relaunch the European space mission dedicated to the exploration of the Red Planet;
      • Order by SKY Perfect JSAT to Thales Alenia Space of JSAT-31, a new generation of satellite reconfigurable in orbit using Space INSPIRE technology;
      • Order by France’s Joint Munitions Command (SiMu) of tens of thousands of 120mm rifled ammunition;
      • Order for a next generation cloud native “FLYTEDGE” InFlight Entertainment System for a major worldwide airline;
      • Order by an Asian customer of latest-generation Ground Master 400 Alpha long-range air surveillance radars;
      • Order by the Dutch Ministry of Defence of seven additional Ground Master 200 multi-mission compact radars;
      • Service contract for the maintenance of the Royal Australian Navy fleet.
    • Seven major orders recorded in Q3 2024:
      • Order for the supply of communications, vetronics, navigation and optronics equipment for vehicles in the French Army’s SCORPION program;
      • Order for the renovation of an air traffic management system;
      • Order from the UK Ministry of Defence for the supply of LMM missiles to strengthen Ukraine’s air defence capabilities;
      • Order of LMM missiles for the British armed forces;
      • Order for the supply of Ground Fire multifunction radars and engagement modules following France’s acquisition of seven SAMP/T NG air defence systems;
      • Order for the supply of anti-submarine warfare systems for the first phase of the construction of six HUNTER-class frigates for the Royal Australian Navy;
      • Notification by the DGA of the second tranche of the development of the future RBE2 XG radar for the Rafale F5.

    At €10,567 million, order intake with a unit value of less than €100 million increased by 6% compared to the first nine months of 2023; while order intake with a unit value of less than €10 million was up by 7% at September 30, 2024.

    From a geographical5 point of view, order intake in mature markets recorded organic growth of 12%, to €11,413 million, driven by strong sales momentum in the United Kingdom (up 28% on an organic basis) as well as in Australia and New Zealand (up 34% on an organic basis). Order intake in emerging markets amounted to €4,137 million, with strong organic growth of 69% as at September 30, 2024. This performance reflected excellent momentum in the Near and Middle East (up 175% on an organic basis) and in Asia (up 49% on an organic basis).

    Order intake in the Aerospace segment totaled €3,639 million, versus €3,403 million over the first nine months of 2023 (+8% at constant scope and exchange rates). This increase reflects two contrasting trends. On the one hand, the avionics market remained strong, our activities growing double-digit organically. On the other hand, the order intake in the space business declined due to a high comparison basis (two large orders signed as at September 30, 2024 versus five as of September 30, 2023).

    At €8,951 million (compared with €6,404 million for the first nine months of 2023), order intake in the Defence & Security segment continued to record a strong momentum, with organic growth of 40%. Seven new orders with a unit value of more than €100 million in the third quarter were added to the nine already recorded in the first half of the year. The order book stood at €37.0 billion, compared with €35.1 billion at September 30, 2023.

    At €2,905 million, order intake in the Digital Identity & Security segment was in line with sales over the period, as most of the activities in this segment operate on short cycles.

    Sales

    Sales for the first nine months of 2024 amounted to €14,069million, compared with €12,854 million for the same period in 2023, an increase of 6.2% at constant scope and exchange rates.

    From a geographical5 point of view, sales growth was strong in mature markets (+6.3% on an organic basis), driven in particular by Europe (+9.0%) including France (+9.4%), and Australia and New Zealand (+8.5%). Emerging markets posted organic growth of +5.8% over the period.

    Sales in the Aerospace segment amounted to €3,839 million, up 5.6% compared to the first nine months of 2023 (+5.3% at constant scope and exchange rates). This growth reflected ongoing robust demand in the avionics market, leading the activity to grow mid-single digit plus. It was however mitigated by the low-single digit organic growth of the space business.

    Sales in the Defence & Security segment totaled €7,239 million, up +8.8% compared to the first nine months of 2023 (+8.5% at constant scope and exchange rates). After sustained growth recorded in the first half of the year, this segment confirmed its strong momentum in the third quarter. Growth was driven in particular by land and air systems.

    In the Digital Identity & Security segment, sales totaled €2,914 million, up 15.7% in the first nine months of 2024 (+0.3% at constant scope and exchange rates), including the positive scope effect linked to the acquisitions of Tesserent and Imperva. The stability in organic growth in this segment reflects contrasting trends:

    • Banking and Payment solutions, negatively affected by a high comparison basis, continued to suffer from further destocking in North America;
    • Steady pace of growth in Cyber and Biometrics activities;
    • Continued ramp-up on Connectivity Solutions market, recording double-digit organic growth.

    Outlook

    Thales continues to benefit from its solid positioning in all its major markets and enjoys robust medium-term outlook, as illustrated by the continued strong sales momentum in the third quarter of 2024.

    As a result, assuming there are no major new disruptions in the global economy or global supply chains, Thales confirms its 2024 annual targets:

    • A book-to-bill ratio above 1;
    • Organic sales growth of between +5% and +6%, corresponding to sales in the range of €19.9 billion to €20.1 billion6;
    • An EBIT margin between 11.7% and 11.8%.

    ****

    This press release contains certain forward-looking statements. Although Thales believes that its expectations are based on reasonable assumptions, actual results may differ significantly from the forward-looking statements due to various risks and uncertainties, as described in the Company’s Universal Registration Document, which has been filed with the French financial markets authority (Autorité des marchés financiers – AMF).

    1In this press release, “organic” means “at constant scope and exchange rates”.

    2Between €19.9 billion and €20.1 billion based on September 2024 scope and exchange rates.

    3Mature markets: Europe, North America, Australia, New Zealand; emerging markets: all other countries.

    4Taking into account a negative currency effect of -€45 million and a positive net scope effect of €441 million.

    5See table on page 6.

    5Seetableon page 6.

    6Based on September 2024 scope and exchanges rates.

    MIL OSI Global Banks

  • MIL-OSI Banking: Committee on Market Access holds third thematic session on supply chain resilience

    Source: WTO

    Headline: Committee on Market Access holds third thematic session on supply chain resilience

    The moderator of the session, Mr Iain Fifer of the United Kingdom, emphasized the critical role of trade data in analyzing and enhancing the resilience of supply chains. He noted the challenges in gathering reliable, timely and relevant data, and underlined how such information can inform decision-making.
    Thailand highlighted logistical challenges related to train freight routes from Thailand to Europe. While rail transport is faster than ocean freight and cheaper than air freight, it faces significant obstacles such as customs clearance issues at multiple borders, a lack of harmonized standards, and higher costs compared to sea freight. Additionally, it stressed how limitations in rail infrastructure add complexity.
    China emphasized the importance of multilateral and bilateral trade frameworks, such as those supported by the WTO, in ensuring smooth supply chain operations. It underscored technological advances, particularly in big data and green energy, as key influencers of the development of global supply chains. China also announced the upcoming release of its Global Supply Chain Connectivity Index at the second China International Supply Chain Expo in November 2024. The document will provide a quantitative assessment of the resilience and stability of global supply chains.
    India focused on the three fundamental pillars of supply chains — production, logistics and markets. It also underlined the importance of digital infrastructure in bolstering supply chain resilience. Additionally, India discussed initiatives such as the Unified Logistics Interface Platform and the PM Gati Shakti National Master Plan, which utilize geospatial data to enhance infrastructure connectivity and logistics efficiency.
    The United States introduced its newly established Supply Chain Center within the Department of Commerce, designed to enhance supply chain resilience. The unit’s “Scale” tool assesses risks across sectors of the US economy by evaluating more than 40 indicators of criticality, vulnerability and resiliency in supply chains. The tool provides an in-depth view of current risks to better inform policy decisions, the United States underlined.
    Switzerland presented an initiative led by the Organisation for Economic Cooperation and Development (OECD) aimed at improving the transparency and resilience of medical supply chains. The initiative was prompted by the supply shortages experienced during the COVID-19 pandemic. Switzerland’s project involves a monitoring mechanism designed to increase visibility in global medical supply chains and address future disruptions through international cooperation and the use of advanced technologies such as artificial intelligence.
    In his conclusion, the moderator emphasized the importance of data design and collection in creating a comprehensive understanding of various supply chains. He stressed that data sharing and collaboration were central themes of the discussion, noting that swift and accurate exchange of information between stakeholders and governments is essential. Additionally, he acknowledged the significant analytical work required after data collection and pointed out that once data analysis is completed, it must be effectively utilized to guide policymaking. The session also featured examples of ongoing policy initiatives shaped by data-driven projects.
    The interim Chair of the Market Access Committee, Ms Nicola Waterfield of Canada, expressed appreciation for the presentations and highlighted the importance of the discussions. She also announced that the Committee’s next formal meeting is scheduled for 19-20 November 2024.

    Share

    MIL OSI Global Banks

  • MIL-OSI Video: Iraq, Gaza/UNSCO, Lebanon & other topics – Daily Press Briefing (22 Oct 2024) | United Nations

    Source: United Nations (Video News)

    Noon briefing by Farhan Haq, Deputy Spokesperson for the Secretary-General.

    Highlights:
    -BRICS
    -Iraq
    -Gaza/UNSCO
    -Occupied Palestinian Territory
    -Gaza/UN Development Programme
    -The UN Interim Force in Lebanon
    -Lebanon/Humanitarian
    -Yemen
    -Sudan
    -Ukraine
    -Security Council/Ukraine
    -Cuba
    -Haiti
    -Democratic Republic of the Congo

    BRICS
    I can confirm that the Secretary-General is once again attending the BRICS summit, which this year takes place in Kazan, in the Russian Federation.

    Iraq
    In a statement issued today, the Secretary-General congratulates the Kurdistan Region of Iraq and its people on the holding of parliamentary elections on 20 October, which took place in a calm and peaceful manner. He further commends the efforts of the Independent High Electoral Commission (IHEC), supported by the United Nations Assistance Mission for Iraq (UNAMI), in the preparations and conduct of these elections.
    As the Kurdistan Region of Iraq awaits the final results, the Secretary-General encourages all political leaders and segments of society to continue to maintain a peaceful atmosphere and urges political actors to resolve any electoral disputes through established legal channels and to complete the electoral process by forming an inclusive government as soon as possible. He reiterates the commitment of the United Nations to support Iraq’s efforts to consolidate democratic gains and build a prosperous future for the people of Iraq.

    Gaza/UNSCO
    Tor Wennesland, the UN Special Coordinator for the Middle East Peace Process, visited Gaza today, where he saw firsthand the continued immense destruction and profound suffering of the people.
    He said he met with UN staff and Palestinian NGOs in Gaza, whose tireless efforts are admirable. He heard directly from them about the alarming security and humanitarian situation across the Strip, particularly in northern Gaza. The challenges faced by the people of Gaza, including serious violations of international humanitarian law, are enormous, with urgent needs for food, medical supplies, and protection.
    Mr. Wennesland said that a significant increase in the entry of humanitarian assistance and an improvement in security is urgently required.  He reiterated the Secretary-General’s repeated call for an immediate ceasefire and the unconditional release of all hostages held by Hamas. He calls on all relevant parties to urgently pursue these goals.

    Gaza/UN Development Programme
    The UN Development Programme (UNDP) says that one year into the Gaza war, the humanitarian crisis has reached a catastrophic level – with unprecedented casualties, widespread destruction and severe food insecurity.
    The war has had a severe impact on critical sectors such as education, healthcare, social services, the economy and the environment, UNDP says in a new report. Educational institutions have suffered significant losses, with numerous casualties among students and educators and the widespread destruction of schools. The healthcare system is nearing collapse, facing critical shortages in medical supplies and widespread malnutrition, particularly among children.
    Economic projections indicate that the gross domestic product (GDP) of the State of Palestine contracted by 35.1 per cent in 2024 compared with a no-war scenario, with unemployment potentially rising to 49.9 per cent. By the end of 2024, the Human Development Index (HDI) in the State of Palestine may fall to 0.643, a level not seen since human development calculations began in 2004.
    Poverty in the State of Palestine is projected to rise to 74.3 per cent in 2024, affecting 4.1 million people, including 2.61 million people who are newly impoverished. The full report is online.

    Full Highlights: https://www.un.org/sg/en/content/ossg/noon-briefing-highlight?date%5Bvalue%5D%5Bdate%5D=22+October+2024

    https://www.youtube.com/watch?v=gfpt8lR-1Oc

    MIL OSI Video

  • MIL-OSI China: Xi underscores BRICS’ role in building multipolar world, driving globalization

    Source: People’s Republic of China – State Council News

    KAZAN, Russia, Oct. 23 — The BRICS mechanism is a pillar in promoting a multipolar world and fostering an inclusive economic globalization, said Chinese President Xi Jinping on Tuesday as leaders gathered in Kazan for the 16th BRICS Summit.

    Xi made the remarks while meeting with Russian President Vladimir Putin ahead of the leaders’ formal meetings. He noted that BRICS is the world’s most important platform for solidarity and cooperation between emerging markets and developing countries.

    He also voiced his hope to have in-depth discussions with Putin and other leaders participating in the summit on the future development of the BRICS mechanism, so as to secure more opportunities for the Global South.

    Putin thanked China for its support during Russia’s presidency of BRICS, stressing that Russia is ready to closely cooperate with China to ensure the success of the first BRICS Summit after its expansion and bolster BRICS cooperation.

    Kazan, the capital of Tatarstan and the fifth-largest city in Russia, holds historical and cultural significance. Xi told Putin during their meeting that around 400 years ago, the Great Tea Road that connected the two countries went past Kazan, through which tea leaves from China’s Wuyi Mountain region found their way into many Russian households.

    The city is also home to Kazan Federal University, where notable figures like the Russian writer Leo Tolstoy and Russian revolutionary leader Vladimir Lenin studied.

    Russian fighter jets escorted Xi’s plane before its landing at the Kazan International Airport around noon on Tuesday. Guards of honor lined both sides of a red carpet to salute Xi, while Russian youths in traditional attire offered him a warm welcome.

    Kazan Mayor Ilsur Metshin, one of the Russian officials who greeted Xi at the airport, told Xinhua that the city is honored to host the Chinese president.

    During the three-day summit, Xi will attend small- and large-scale leaders’ meetings and the BRICS Plus leaders’ dialogue. He will also have in-depth exchanges with leaders of other countries on the current international situation, BRICS cooperation, the development of the BRICS mechanism and important issues of common concern, according to Chinese Foreign Ministry Spokesperson Mao Ning.

    GREATER BRICS

    Observers see the BRICS Summit as an opportunity for Global South countries to voice their needs.

    Victoria Fedosova, deputy director of the Institute for Strategic Research and Forecasts of the Russian Peoples’ Friendship University, said the very dynamic development of BRICS and the growth in its membership reflect a demand for a platform to address global issues.

    “The BRICS mechanism has enormous potential in adjusting the imbalances in global development accumulated over the last 80 years,” said Fedosova.

    The New Development Bank (NDB) is a flagship project of BRICS cooperation. As the first multilateral development bank established by emerging economies, the NDB, headquartered in Shanghai, provides financing support for infrastructure development, clean energy, environmental protection, and the building of cyber infrastructure across BRICS countries.

    Dilma Rousseff, president of the NDB who is also in Kazan, told Putin during a meeting on Tuesday that the summit is “very important.”

    BRICS has emerged as “the core of this multipolar world” alongside other global and regional organizations, said British author and political commentator Carlos Martinez. “It is essential to move away from the dominance of Western voices and allow countries from the Global South to have a meaningful say in international relations.”

    “BRICS, with its focus on inclusivity and equality, serves as a shining star of this new type of international relations,” he said.

    Zukiswa Roboji, a researcher at Walter Sisulu University in South Africa, said that BRICS has “undoubtedly made notable strides in recent years,” offering emerging economies easier access to financial resources and better opportunities for trade, investment and development.

    Experts also highlighted China’s role in BRICS cooperation and development. Timirkhan Alishev, vice rector for International Affairs at Kazan Federal University, told Xinhua that all initiatives introduced by China are rooted in multilateralism, fostering communication and dialogue on multiple levels.

    “We see China puts a lot of efforts into developing BRICS,” said Alishev, adding that there are no preconditions for BRICS cooperation as one can begin dialogue on equal footing with everyone.

    STRONGER APPEAL

    The term BRIC was initially coined in 2001 by Jim O’Neill, former chief economist at Goldman Sachs, as an investment concept referring to emerging market economies of Brazil, Russia, India and China. With South Africa’s inclusion in 2010, BRICS officially took shape.

    Following last year’s expansion, the BRICS grouping now represents approximately 30 percent of global GDP, nearly half of the world’s population, and one-fifth of global trade.

    “Measured by GDP, the BRICS countries have already surpassed the G7 in importance,” said Rousseff in a recent interview with Xinhua.

    One of the key priorities of Russia’s BRICS chairmanship is integrating the new members into the BRICS framework, according to the official website. Other areas of practical cooperation include boosting trade and direct investment, as well as fostering a balanced and equitable transition to a low-carbon economy.

    As BRICS’ influence grows, its appeal has strengthened. Over 30 countries like Thailand, Malaysia, Türkiye and Azerbaijan have either formally applied for or expressed interest in its membership, while many other developing countries are seeking deeper cooperation with the group.

    “Joining BRICS will benefit Thailand in many ways, including advancing cooperation with other developing countries and increasing its influence in the international arena,” said Tang Zhimin, director of China ASEAN Studies at the Bangkok-based Panyapiwat Institute of Management.

    BRICS “has become an engine of growth for the world economy and plays an important role in global policymaking,” Tang added.

    MIL OSI China News

  • MIL-OSI: Fidelity D & D Bancorp, Inc. Reports Third Quarter 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    DUNMORE, Pa., Oct. 23, 2024 (GLOBE NEWSWIRE) — Fidelity D & D Bancorp, Inc. (NASDAQ: FDBC) and its banking subsidiary, The Fidelity Deposit and Discount Bank, announced its unaudited, consolidated financial results for the three and nine-month periods ended September 30, 2024.

    Unaudited Financial Information

    Net income for the quarter ended September 30, 2024 was $5.0 million, or $0.86 diluted earnings per share, compared to $5.3 million, or $0.93 diluted earnings per share, for the quarter ended September 30, 2023.  The $0.3 million decline in net income resulted primarily from the $1.0 million increase in non-interest expenses coupled with a $0.4 million increase in the provision for credit losses on unfunded loan commitments and $0.2 million increase in the provision for credit losses on loans. This was partially offset by a $0.8 million increase in net interest income and a $0.7 million increase in non-interest income.

    For the nine months ended September 30, 2024, net income was $15.0 million, or $2.59 diluted earnings per share, compared to $17.7 million, or $3.11 diluted earnings per share, for the nine months ended September 30, 2023.  The $2.7 million, or 15%, decline in net income stemmed from the $2.0 million higher non-interest expenses and $1.6 million reduction in net interest income partially offset by the increase of $0.8 million in non-interest income.

    “Our third quarter results reflect strong balance sheet growth, increased capital levels, liquidity, and non-interest income,” stated Daniel J. Santaniello, President and Chief Executive Officer. “Q3 also reflected an increase in net interest margin. We remain focused, disciplined and thoughtful as we execute on our strategic plan. The Fidelity Bankers continue to demonstrate exemplary efforts and Fidelity Bank is well positioned for the future and committed to our clients, shareholders, and the communities we serve.”

    Consolidated Third Quarter Operating Results Overview

    Net interest income was $15.4 million for the third quarter of 2024, a 5% increase over the $14.6 million earned for the third quarter of 2023.  The $0.8 million increase in net interest income resulted from the increase of $3.6 million in interest income primarily due to a $71.0 million increase in the average balance of interest-earning assets and a 50 basis point increase in fully-taxable equivalent (“FTE”) yield. The loan portfolio had the biggest impact, producing a $3.7 million increase in FTE interest income from $122.8 million in higher quarterly average balances and an increase of 50 basis points in FTE loan yield. Slightly offsetting the higher interest income, a $2.8 million increase in interest expense was due to a 55 basis point increase in the rates paid on interest-bearing deposits coupled with a $94.4 million quarter-over-quarter increase in average deposit balances. 

    The overall cost of interest-bearing liabilities was 2.70% for the third quarter of 2024, an increase of 53 basis points from the 2.17% for the third quarter of 2023.  The cost of funds increased 45 basis points to 2.08% for the third quarter of 2024 from 1.63% for the third quarter of 2023. The FTE yield on interest-earning assets was 4.68% for the third quarter of 2024, an increase of 50 basis points from the 4.18% for the third quarter of 2023.  The Company’s FTE (non-GAAP measurement) net interest spread was 1.98% for the third quarter of 2024, a decrease of 3 basis points from the 2.01% recorded for the third quarter of 2023.  FTE net interest margin increased to 2.70% for the three months ended September 30, 2024 from 2.63% for the same 2023 period due to allocation of better performing interest earning assets, which led to a 7 basis point margin improvement.

    The provision for credit losses on loans was $0.7 million coupled with a provision for credit losses on unfunded loan commitments of $0.1 million for the third quarter of 2024. For the three months ended September 30, 2024, the provision for credit losses on loans increased $0.2 million compared to the three months ended September 30, 2023. The increase in the provision for credit losses on loans was due to growth in the loan portfolio of $67.0 million in the third quarter of 2024 compared to growth of $16.1 million in the same quarter of 2023, specifically in the commercial loan portfolio. For the three months ended September 30, 2024, the provision for credit losses on unfunded loan commitments increased $0.4 million compared to the three months ended September 30, 2023. The increase in the provision for credit losses on unfunded commitments was due to a growth in the unfunded commitments reserve of $135 thousand in the third quarter of 2024 compared to a reduction of $275 thousand in the same quarter of 2023, specifically in commercial construction commitments.

    Total non-interest income increased $0.7 million, or 15%, to $5.0 million for the third quarter of 2024 compared to $4.3 million for the third quarter of 2023. The increase in non-interest income was primarily attributable to an additional $0.1 million service charges on commercial loans, $0.1 million higher fees from trust fiduciary activities, $0.1 million more in financial services revenue, and fees from commercial loans with interest rate hedges increased $0.1 million.

    Non-interest expenses increased $1.0 million, or 8%, for the third quarter of 2024 to $13.8 million from $12.8 million for the same quarter of 2023. The increase in non-interest expenses was primarily due to $0.9 million higher salaries and benefits expense from higher salaries related to new hires and banker incentives. There were also increases in professional services of $0.1 million and PA shares tax of $0.1 million.

    The provision for income taxes increased $0.2 million during the third quarter of 2024 primarily due to less tax credits compared to the third quarter of 2023.

    Consolidated Year-To-Date Operating Results Overview

    Net interest income was $45.5 million for the nine months ended September 30, 2024 compared to $47.1 million for the nine months ended September 30, 2023.  The $1.6 million, or 3%, reduction was the result of interest expense growing faster than interest income.  On the asset side, the loan portfolio caused interest income growth by producing $9.5 million more in interest income primarily from an increase of 47 basis points in FTE loan yields on $97.4 million in higher average balances.  On the funding side, total interest expense increased by $11.6 million primarily due to an increase in interest expense paid on deposits of $12.0 million from an 86 basis point higher rate paid on a $97.1 million larger average balance of interest-bearing deposits, partially offset by a decrease in interest expense on borrowings of $0.4 million for the nine months ended September 30, 2024 compared to the same period in 2023.

    The overall cost of interest-bearing liabilities was 2.60% for the nine months ended September 30, 2024 compared to 1.79% for the nine months ended September 30, 2023.  The cost of funds increased 66 basis points to 1.99% for the nine months ended September 30, 2024 from 1.33% for the same period of 2023. The FTE yield on interest-earning assets was 4.59% for the nine months ended September 30, 2024, an increase of 47 basis points from the 4.12% for year-to-date September 30, 2023.  The Company’s FTE (non-GAAP measurement) net interest spread was 1.99% for the nine months ended September 30, 2024, a decrease of 34 basis points from the 2.33% recorded for the same period of 2023.  FTE net interest margin decreased by 16 basis points to 2.70% for the nine months ended September 30, 2024 from 2.86% for the same 2023 period due to the increase in rates paid on interest-bearing liabilities growing at a faster pace than the yields on interest-earning assets.

    The provision for credit losses on loans was $1.1 million and the provision for credit losses on unfunded loan commitments was $0.2 million for the nine months ended September 30, 2024. For the nine months ended September 30, 2024, the provision for credit losses on loans decreased $0.3 million compared to the nine months ended September 30, 2023. The decrease in the provision for credit losses on loans was due to a reduction in net charge-offs. For the nine months ended September 30, 2024, the provision for credit losses on unfunded loan commitments increased $0.3 million compared to the nine months ended September 30, 2023. The increase in the provision for credit losses on unfunded commitments was due to a higher growth in unfunded loan commitments, specifically commercial construction commitments.

    Total non-interest income for the nine months ended September 30, 2024 was $14.2 million, an increase of $0.8 million, or 7%, from $13.4 million for the nine months ended September 30, 2023.  The increase was primarily due to $0.5 million in additional trust fiduciary fees and $0.2 million higher fees from financial services.  During the first nine months of 2023, the Company recorded a write-down associated with a branch closure reducing non-interest income. In the third quarter of 2023, the Company received $0.3 million in recoveries from acquired charged-off loans, offsetting the increase in other income. Additionally, the Company experienced a decrease of $0.2 million in fees from commercial loans with interest rate hedges compared to the first nine months of 2023.

    Non-interest expenses increased to $41.1 million for the nine months ended September 30, 2024, an increase of $2.0 million, or 5%, from $39.1 million for the nine months ended September 30, 2023.  The increase in non-interest expenses was primarily due to the $2.0 million increase in salaries and benefits expense coupled with increases in professional fees of $0.3 million and PA shares tax of $0.3 million for the nine months ended September 30, 2024 compared to the same period in 2023. The increases were partially offset by $0.4 million less in fraud losses and $0.2 million less advertising and marketing expenses. 

    The provision for income taxes decreased $0.2 million during the nine months ended September 30, 2024 compared to the same period in 2023 primarily due to lower income before taxes. 

    Consolidated Balance Sheet & Asset Quality Overview

    The Company’s total assets had a balance of $2.6 billion as of September 30, 2024, an increase of $0.1 billion, from $2.5 billion as of December 31, 2023. The increase resulted from $107.9 million in growth in the loans and leases portfolio during the nine months ended September 30, 2024. Cash and cash equivalents increased $8.2 million and the investment portfolio decreased by $8.5 million. The decline in the investment portfolio was primarily due to $16.7 million in paydowns partially offset by an $8.4 million increase in market value of available-for-sale securities. As of September 30, 2024, the market value of held-to-maturity securities also increased by $6.0 million compared to December 31, 2023, with $22.2 million in unrealized losses. During the same time period, total liabilities increased $95.0 million, or 4%. Deposit growth of $184.1 million was utilized to pay down $92.0 million in short-term borrowings. The Company experienced an increase of $98.7 million in money market deposits and an increase of $96.1 million in certificate of deposits due to promotional rates offered as a result of market competition. The growth in these products was partially offset by a decrease of $10.8 million in checking and savings account balances as of September 30, 2024. As of September 30, 2024, the ratio of insured and collateralized deposits to total deposits was approximately 75%.

    Shareholders’ equity increased $17.8 million, or 9%, to $207.3 million at September 30, 2024 from $189.5 million at December 31, 2023. The increase was caused by retained earnings improvement from net income of $15.0 million, partially offset by $6.6 million in cash dividends paid to shareholders and a $8.0 million improvement in accumulated other comprehensive income due to lower unrealized losses in the investment portfolio. At September 30, 2024, there were no credit losses on available-for-sale and held-to-maturity debt securities.  Accumulated other comprehensive income (loss) is excluded from regulatory capital ratios. The Fidelity Deposit and Discount Bank remains above well capitalized limits with Tier 1 capital at 9.30% of total average assets as of September 30, 2024.  Total risk-based capital was 14.56% of risk-weighted assets and Tier 1 risk-based capital was 13.38% of risk-weighted assets as of September 30, 2024.  Tangible book value per share was $32.55 at September 30, 2024 compared to $29.57 at December 31, 2023.  Tangible common equity was 7.19% of total assets at September 30, 2024 compared to 6.79% at December 31, 2023.

    Asset Quality

    Total non-performing assets were $7.6 million, or 0.29% of total assets, at September 30, 2024, compared to $3.3 million, or 0.13% of total assets, at December 31, 2023. Past due and non-accrual loans to total loans were 0.62% at September 30, 2024, compared to 0.46% at December 31, 2023. Net charge-offs to average total loans were 0.02% at September 30, 2024, compared to 0.04% at December 31, 2023. 

    About Fidelity D & D Bancorp, Inc. and The Fidelity Deposit and Discount Bank

    Fidelity D & D Bancorp, Inc. has built a strong history as trusted financial advisor to the clients served by The Fidelity Deposit and Discount Bank (“Fidelity Bank”).  Fidelity Bank continues its mission of exceeding client expectations through a unique banking experience. It operates 21 full-service offices throughout Lackawanna, Luzerne, Lehigh and Northampton Counties and a Fidelity Bank Wealth Management Office in Schuylkill County. Fidelity Bank provides a digital banking experience online at http://www.bankatfidelity.com, through the Fidelity Mobile Banking app, and in the Client Care Center at 1-800-388-4380. Additionally, the Bank offers full-service Wealth Management & Brokerage Services, a Mortgage Center, and a full suite of personal and commercial banking products and services. Part of the Company’s vision is to serve as the best bank for the community, which was accomplished by having provided over 5,980 hours of volunteer time and over $1.4 million in donations to non-profit organizations directly within the markets served throughout 2023. Fidelity Bank’s deposits are insured by the Federal Deposit Insurance Corporation up to the full extent permitted by law.

    Non-GAAP Financial Measures

    The Company uses non-GAAP financial measures to provide information useful to the reader in understanding its operating performance and trends, and to facilitate comparisons with the performance of other financial institutions. Management uses these measures internally to assess and better understand our underlying business performance and trends related to core business activities.  The Company’s non-GAAP financial measures and key performance indicators may differ from the non-GAAP financial measures and key performance indicators other financial institutions use to measure their performance and trends. Non-GAAP financial measures should be supplemental to GAAP used to prepare the Company’s operating results and should not be read in isolation or relied upon as a substitute for GAAP measures.  Reconciliations of non-GAAP financial measures to GAAP are presented in the tables below.

    Interest income was adjusted to recognize the income from tax exempt interest-earning assets as if the interest was taxable, fully-taxable equivalent (FTE), in order to calculate certain ratios within this document.  This treatment allows a uniform comparison among yields on interest-earning assets.  Interest income was FTE adjusted, using the corporate federal tax rate of 21% for 2024 and 2023.

    Forward-looking statements

    Certain of the matters discussed in this press release constitute forward-looking statements for purposes of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and as such may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.  The words “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” and similar expressions are intended to identify such forward-looking statements.

    The Company’s actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, without limitation:

    • local, regional and national economic conditions and changes thereto;
    • the short-term and long-term effects of inflation, and rising costs to the Company, its customers and on the economy;
    • the risks of changes and volatility of interest rates on the level and composition of deposits, loan demand, and the values of loan collateral, securities and interest rate protection agreements, as well as interest rate risks;
    • securities markets and monetary fluctuations and volatility;
    • disruption of credit and equity markets;
    • impacts of the capital and liquidity requirements of the Basel III standards and other regulatory pronouncements, regulations and rules;
    • governmental monetary and fiscal policies, as well as legislative and regulatory changes;
    • effects of short- and long-term federal budget and tax negotiations and their effect on economic and business conditions;
    • the costs and effects of litigation and of unexpected or adverse outcomes in such litigation;
    • the impact of new or changes in existing laws and regulations, including laws and regulations concerning taxes, banking, securities and insurance and their application with which the Company and its subsidiaries must comply;
    • the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Financial Accounting Standards Board and other accounting standard setters;
    • the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our market area and elsewhere, including institutions operating locally, regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the internet;
    • the effects of economic conditions of any other pandemic, epidemic or other health-related crisis such as COVID-19 and responses thereto on current customers and the operations of the Company, specifically the effect of the economy on loan customers’ ability to repay loans;
    • the effects of bank failures, banking system instability, deposit fluctuations, loan and securities value changes;
    • technological changes;
    • the interruption or breach in security of our information systems, continually evolving cybersecurity and other technological risks and attacks resulting in failures or disruptions in customer account management, general ledger processing and loan or deposit updates and potential impacts resulting therefrom including additional costs, reputational damage, regulatory penalties, and financial losses;
    • acquisitions and integration of acquired businesses;
    • the failure of assumptions underlying the establishment of reserves for loan losses and estimations of values of collateral and various financial assets and liabilities;
    • acts of war or terrorism; and
    • the risk that our analyses of these risks and forces could be incorrect and/or that the strategies developed to address them could be unsuccessful.

    The Company cautions readers not to place undue reliance on forward-looking statements, which reflect analyses only as of the date of this release.  The Company has no obligation to update any forward-looking statements to reflect events or circumstances after the date of this release.

    For more information please visit our investor relations web site located through http://www.bankatfidelity.com. 

    Contacts:  
       
    Daniel J. Santaniello Salvatore R. DeFrancesco, Jr.
    President and Chief Executive Officer Treasurer and Chief Financial Officer
    570-504-8035 570-504-8000
    FIDELITY D & D BANCORP, INC.
    Unaudited Condensed Consolidated Balance Sheets
    (dollars in thousands)
     
    At Period End:   September 30, 2024     December 31, 2023  
    Assets                
    Cash and cash equivalents   $ 120,169     $ 111,949  
    Investment securities     559,819       568,273  
    Restricted investments in bank stock     3,944       3,905  
    Loans and leases     1,795,548       1,686,555  
    Allowance for credit losses on loans     (19,630 )     (18,806 )
    Premises and equipment, net     36,057       34,232  
    Life insurance cash surrender value     57,672       54,572  
    Goodwill and core deposit intangible     20,576       20,812  
    Other assets     41,778       41,667  
                     
    Total assets   $ 2,615,933     $ 2,503,159  
                     
    Liabilities                
    Non-interest-bearing deposits   $ 549,710     $ 536,143  
    Interest-bearing deposits     1,792,796       1,622,282  
    Total deposits     2,342,506       2,158,425  
    Short-term borrowings     25,000       117,000  
    Secured borrowings     6,323       7,372  
    Other liabilities     34,843       30,883  
    Total liabilities     2,408,672       2,313,680  
                     
    Shareholders’ equity     207,261       189,479  
                     
    Total liabilities and shareholders’ equity   $ 2,615,933     $ 2,503,159  
    Average Year-To-Date Balances:   September 30, 2024     December 31, 2023  
    Assets                
    Cash and cash equivalents   $ 51,707     $ 35,462  
    Investment securities     556,559       597,359  
    Restricted investments in bank stock     3,961       4,212  
    Loans and leases     1,722,655       1,635,286  
    Allowance for credit losses on loans     (19,169 )     (18,680 )
    Premises and equipment, net     35,418       32,215  
    Life insurance cash surrender value     55,963       54,085  
    Goodwill and core deposit intangible     20,679       20,977  
    Other assets     41,854       44,180  
                     
    Total assets   $ 2,469,627     $ 2,405,096  
                     
    Liabilities                
    Non-interest-bearing deposits   $ 524,238     $ 558,962  
    Interest-bearing deposits     1,673,443       1,586,527  
    Total deposits     2,197,681       2,145,489  
    Short-term borrowings     39,873       49,860  
    Secured borrowings     7,009       7,489  
    Other liabilities     31,724       29,881  
    Total liabilities     2,276,287       2,232,719  
                     
    Shareholders’ equity     193,340       172,377  
                     
    Total liabilities and shareholders’ equity   $ 2,469,627     $ 2,405,096  
    FIDELITY D & D BANCORP, INC.
    Unaudited Condensed Consolidated Statements of Income
    (dollars in thousands)
     
        Three Months Ended     Nine Months Ended  
        Sep. 30, 2024     Sep. 30, 2023     Sep. 30, 2024     Sep. 30, 2023  
    Interest income                                
    Loans and leases   $ 24,036     $ 20,502     $ 68,685     $ 59,223  
    Securities, interest-bearing cash and other     3,263       3,176       10,278       9,772  
                                     
    Total interest income     27,299       23,678       78,963       68,995  
                                     
    Interest expense                                
    Deposits     (11,297 )     (8,488 )     (31,697 )     (19,713 )
    Borrowings and debt     (571 )     (551 )     (1,775 )     (2,136 )
                                     
    Total interest expense     (11,868 )     (9,039 )     (33,472 )     (21,849 )
                                     
    Net interest income     15,431       14,639       45,491       47,146  
                                     
    Net benefit (provision) for credit losses on loans     (675 )     (525 )     (1,075 )     (1,380 )
    Net benefit (provision) for credit losses on unfunded loan commitments     (135 )     275       (225 )     100  
    Non-interest income     4,979       4,325       14,167       13,349  
    Non-interest expense     (13,840 )     (12,784 )     (41,146 )     (39,066 )
                                     
    Income before income taxes     5,760       5,930       17,212       20,149  
                                     
    (Provision) benefit for income taxes     (793 )     (590 )     (2,252 )     (2,407 )
    Net income   $ 4,967     $ 5,340     $ 14,960     $ 17,742  
        Three Months Ended  
        Sep. 30, 2024     Jun. 30, 2024     Mar. 31, 2024     Dec. 31, 2023     Sep. 30, 2023  
    Interest income                                        
    Loans and leases   $ 24,036     $ 22,516     $ 22,133     $ 21,406     $ 20,502  
    Securities, interest-bearing cash and other     3,263       3,523       3,492       3,434       3,176  
                                             
    Total interest income     27,299       26,039       25,625       24,840       23,678  
                                             
    Interest expense                                        
    Deposits     (11,297 )     (10,459 )     (9,941 )     (9,232 )     (8,488 )
    Borrowings and debt     (571 )     (463 )     (741 )     (707 )     (551 )
                                             
    Total interest expense     (11,868 )     (10,922 )     (10,682 )     (9,939 )     (9,039 )
                                             
    Net interest income     15,431       15,117       14,943       14,901       14,639  
                                             
    Net benefit (provision) for credit losses on loans     (675 )     (275 )     (125 )     (111 )     (525 )
    Net benefit (provision) for credit losses on unfunded loan commitments     (135 )     (140 )     50       65       275  
    Non-interest income (loss)     4,979       4,615       4,572       (1,944 )     4,325  
    Non-interest expense     (13,840 )     (13,616 )     (13,689 )     (12,804 )     (12,784 )
                                             
    Income before income taxes     5,760       5,701       5,751       107       5,930  
                                             
    (Provision) benefit for income taxes     (793 )     (766 )     (694 )     361       (590 )
    Net income   $ 4,967     $ 4,935     $ 5,057     $ 468     $ 5,340  
    FIDELITY D & D BANCORP, INC.
    Unaudited Condensed Consolidated Balance Sheets
    (dollars in thousands)
     
    At Period End:   Sep. 30, 2024     Jun. 30, 2024     Mar. 31, 2024     Dec. 31, 2023     Sep. 30, 2023  
    Assets                                        
    Cash and cash equivalents   $ 120,169     $ 78,085     $ 72,733     $ 111,949     $ 110,471  
    Investment securities     559,819       552,495       559,016       568,273       576,688  
    Restricted investments in bank stock     3,944       3,968       3,959       3,905       3,800  
    Loans and leases     1,795,548       1,728,509       1,697,299       1,686,555       1,647,552  
    Allowance for credit losses on loans     (19,630 )     (18,975 )     (18,886 )     (18,806 )     (18,757 )
    Premises and equipment, net     36,057       35,808       34,899       34,232       32,625  
    Life insurance cash surrender value     57,672       57,278       54,921       54,572       54,226  
    Goodwill and core deposit intangible     20,576       20,649       20,728       20,812       20,897  
    Other assets     41,778       42,828       44,227       41,667       49,318  
                                             
    Total assets   $ 2,615,933     $ 2,500,645     $ 2,468,896     $ 2,503,159     $ 2,476,820  
                                             
    Liabilities                                        
    Non-interest-bearing deposits   $ 549,710     $ 527,572     $ 537,824     $ 536,143     $ 549,741  
    Interest-bearing deposits     1,792,796       1,641,558       1,678,172       1,622,282       1,602,018  
    Total deposits     2,342,506       2,169,130       2,215,996       2,158,425       2,151,759  
    Short-term borrowings     25,000       98,120       25,000       117,000       124,000  
    Secured borrowings     6,323       7,237       7,299       7,372       7,439  
    Other liabilities     34,843       30,466       28,966       30,883       28,190  
    Total liabilities     2,408,672       2,304,953       2,277,261       2,313,680       2,311,388  
                                             
    Shareholders’ equity     207,261       195,692       191,635       189,479       165,432  
                                             
    Total liabilities and shareholders’ equity   $ 2,615,933     $ 2,500,645     $ 2,468,896     $ 2,503,159     $ 2,476,820  
    Average Quarterly Balances:   Sep. 30, 2024     Jun. 30, 2024     Mar. 31, 2024     Dec. 31, 2023     Sep. 30, 2023  
    Assets                                        
    Cash and cash equivalents   $ 41,991     $ 58,351     $ 54,887     $ 42,176     $ 33,238  
    Investment securities     554,578       551,445       563,674       558,423       598,604  
    Restricted investments in bank stock     3,965       3,983       3,934       3,854       3,763  
    Loans and leases     1,763,254       1,707,598       1,696,669       1,664,905       1,640,411  
    Allowance for credit losses on loans     (19,323 )     (19,171 )     (19,013 )     (19,222 )     (18,812 )
    Premises and equipment, net     36,219       35,433       34,591       33,629       31,746  
    Life insurance cash surrender value     57,525       55,552       54,796       54,449       54,110  
    Goodwill and core deposit intangible     20,602       20,677       20,759       20,844       20,930  
    Other assets     41,734       42,960       40,871       46,028       44,346  
                                             
    Total assets   $ 2,500,545     $ 2,456,828     $ 2,451,168     $ 2,405,086     $ 2,408,336  
                                             
    Liabilities                                        
    Non-interest-bearing deposits   $ 522,827     $ 530,048     $ 519,856     $ 533,663     $ 548,682  
    Interest-bearing deposits     1,702,187       1,670,211       1,647,615       1,616,826       1,607,793  
    Total deposits     2,225,014       2,200,259       2,167,471       2,150,489       2,156,475  
    Short-term borrowings     37,220       28,477       53,952       48,490       37,595  
    Secured borrowings     6,429       7,269       7,335       7,412       7,470  
    Other liabilities     31,999       30,734       32,434       30,745       29,638  
    Total liabilities     2,300,662       2,266,739       2,261,192       2,237,136       2,231,178  
                                             
    Shareholders’ equity     199,883       190,089       189,976       167,950       177,158  
                                             
    Total liabilities and shareholders’ equity   $ 2,500,545     $ 2,456,828     $ 2,451,168     $ 2,405,086     $ 2,408,336  
    FIDELITY D & D BANCORP, INC.
    Selected Financial Ratios and Other Financial Data
     
        Three Months Ended  
        Sep. 30, 2024     Jun. 30, 2024     Mar. 31, 2024     Dec. 31, 2023     Sep. 30, 2023  
    Selected returns and financial ratios                                        
    Basic earnings per share   $ 0.87     $ 0.86     $ 0.88     $ 0.08     $ 0.94  
    Diluted earnings per share   $ 0.86     $ 0.86     $ 0.88     $ 0.08     $ 0.93  
    Dividends per share   $ 0.38     $ 0.38     $ 0.38     $ 0.38     $ 0.36  
    Yield on interest-earning assets (FTE)*     4.68 %     4.58 %     4.52 %     4.36 %     4.18 %
    Cost of interest-bearing liabilities     2.70 %     2.58 %     2.51 %     2.36 %     2.17 %
    Cost of funds     2.08 %     1.96 %     1.93 %     1.79 %     1.63 %
    Net interest spread (FTE)*     1.98 %     2.00 %     2.01 %     2.00 %     2.01 %
    Net interest margin (FTE)*     2.70 %     2.71 %     2.69 %     2.66 %     2.63 %
    Return on average assets     0.79 %     0.81 %     0.83 %     0.08 %     0.88 %
    Pre-provision net revenue to average assets*     1.05 %     1.00 %     0.96 %     0.03 %     1.02 %
    Return on average equity     9.89 %     10.44 %     10.71 %     1.10 %     11.96 %
    Return on average tangible equity*     11.02 %     11.72 %     12.02 %     1.26 %     13.56 %
    Efficiency ratio (FTE)*     65.33 %     66.47 %     67.56 %     63.74 %     65.01 %
    Expense ratio     1.41 %     1.47 %     1.50 %     2.43 %     1.39 %
        Nine months ended  
        Sep. 30, 2024     Sep. 30, 2023  
    Basic earnings per share   $ 2.61     $ 3.13  
    Diluted earnings per share   $ 2.59     $ 3.11  
    Dividends per share   $ 1.14     $ 1.08  
    Yield on interest-earning assets (FTE)*     4.59 %     4.12 %
    Cost of interest-bearing liabilities     2.60 %     1.79 %
    Cost of funds     1.99 %     1.33 %
    Net interest spread (FTE)*     1.99 %     2.33 %
    Net interest margin (FTE)*     2.70 %     2.86 %
    Return on average assets     0.81 %     0.99 %
    Pre-provision net revenue to average assets*     1.00 %     1.19 %
    Return on average equity     10.34 %     13.64 %
    Return on average tangible equity*     11.57 %     15.52 %
    Efficiency ratio (FTE)*     66.44 %     62.33 %
    Expense ratio     1.46 %     1.43 %
    Other financial data   At period end:  
    (dollars in thousands except per share data)   Sep. 30, 2024     Jun. 30, 2024     Mar. 31, 2024     Dec. 31, 2023     Sep. 30, 2023  
    Assets under management   $ 942,190     $ 906,861     $ 900,964     $ 876,287     $ 799,968  
    Book value per share   $ 36.13     $ 34.12     $ 33.41     $ 33.22     $ 29.04  
    Tangible book value per share*   $ 32.55     $ 30.52     $ 29.80     $ 29.57     $ 25.37  
    Equity to assets     7.92 %     7.83 %     7.76 %     7.57 %     6.68 %
    Tangible common equity ratio*     7.19 %     7.06 %     6.98 %     6.79 %     5.89 %
    Allowance for credit losses on loans to:                                        
    Total loans     1.09 %     1.10 %     1.11 %     1.12 %     1.14 %
    Non-accrual loans   2.77x     2.75x     5.31x     5.68x     6.24x  
    Non-accrual loans to total loans     0.39 %     0.40 %     0.21 %     0.20 %     0.18 %
    Non-performing assets to total assets     0.29 %     0.28 %     0.15 %     0.13 %     0.14 %
    Net charge-offs to average total loans     0.02 %     0.03 %     0.01 %     0.04 %     0.04 %
                                             
    Fidelity Bank Capital Adequacy Ratios                                        
    Total risk-based capital ratio     14.56 %     14.69 %     14.68 %     14.57 %     14.69 %
    Common equity tier 1 risk-based capital ratio     13.38 %     13.52 %     13.47 %     13.32 %     13.51 %
    Tier 1 risk-based capital ratio     13.38 %     13.52 %     13.47 %     13.32 %     13.51 %
    Leverage ratio     9.30 %     9.30 %     9.15 %     9.08 %     9.17 %

    * Non-GAAP Financial Measures – see reconciliations below

    FIDELITY D & D BANCORP, INC.
    Reconciliations of Non-GAAP Financial Measures to GAAP
     
    Reconciliations of Non-GAAP Measures to GAAP   Three Months Ended  
    (dollars in thousands, except per share data)   Sep. 30, 2024     Jun. 30, 2024     Mar. 31, 2024     Dec. 31, 2023     Sep. 30, 2023  
    FTE net interest income (non-GAAP)                                        
    Interest income (GAAP)   $ 27,299     $ 26,039     $ 25,625     $ 24,840     $ 23,678  
    Adjustment to FTE     775       751       747       664       700  
    Interest income adjusted to FTE (non-GAAP)     28,074       26,790       26,372       25,504       24,378  
    Interest expense (GAAP)     11,868       10,922       10,682       9,939       9,039  
    Net interest income adjusted to FTE (non-GAAP)   $ 16,206     $ 15,868       15,690       15,565       15,339  
                                             
    Efficiency Ratio (non-GAAP)                                        
    Non-interest expenses (GAAP)   $ 13,840     $ 13,616     $ 13,689     $ 12,804     $ 12,784  
                                             
    Net interest income (GAAP)     15,431       15,117       14,943       14,901       14,639  
    Plus: taxable equivalent adjustment     775       751       747       664       700  
    Non-interest income (GAAP)     4,979       4,615       4,572       (1,944 )     4,325  
    Less: (Loss) gain on sales of securities                       (6,467 )      
    Net interest income (FTE) plus adjusted non-interest income (non-GAAP)   $ 21,185     $ 20,483     $ 20,262     $ 20,088     $ 19,664  
    Efficiency ratio (non-GAAP) (1)     65.33 %     66.48 %     67.56 %     63.74 %     65.01 %
    (1) The reported efficiency ratio is a non-GAAP measure calculated by dividing non-interest expense by the sum of net interest income, on an FTE basis, and adjusted non-interest (loss) income.                                        
                                             
    Tangible Book Value per Share/Tangible Common Equity Ratio (non-GAAP)                                        
    Total assets (GAAP)   $ 2,615,933     $ 2,500,645     $ 2,468,896     $ 2,503,159     $ 2,476,820  
    Less: Intangible assets     (20,576 )     (20,649 )     (20,728 )     (20,812 )     (20,897 )
    Tangible assets     2,595,357       2,479,996       2,448,168       2,482,347       2,455,923  
    Total shareholders’ equity (GAAP)     207,261       195,692       191,635       189,479       165,432  
    Less: Intangible assets     (20,576 )     (20,649 )     (20,728 )     (20,812 )     (20,897 )
    Tangible common equity     186,685       175,043       170,907       168,667       144,535  
                                             
    Common shares outstanding, end of period     5,736,025       5,735,728       5,735,732       5,703,636       5,696,351  
    Tangible Common Book Value per Share   $ 32.55     $ 30.52     $ 29.80     $ 29.57     $ 25.37  
    Tangible Common Equity Ratio     7.19 %     7.06 %     6.98 %     6.79 %     5.89 %
                                             
    Pre-Provision Net Revenue to Average Assets                                        
    Income before taxes (GAAP)   $ 5,760     $ 5,701     $ 5,751     $ 107     $ 5,930  
    Plus: Provision for credit losses     810       415       75       47       250  
    Total pre-provision net revenue (non-GAAP)     6,570       6,116       5,826       154       6,180  
    Total (annualized) (non-GAAP)   $ 26,423     $ 24,600     $ 23,432     $ 609     $ 24,517  
                                             
    Average assets   $ 2,500,545     $ 2,456,828     $ 2,451,168     $ 2,405,086     $ 2,408,336  
    Pre-Provision Net Revenue to Average Assets (non-GAAP)     1.05 %     1.00 %     0.96 %     0.03 %     1.02 %
    Reconciliations of Non-GAAP Measures to GAAP   Nine months ended  
    (dollars in thousands)   Sep. 30, 2024     Sep. 30, 2023  
    FTE net interest income (non-GAAP)                
    Interest income (GAAP)   $ 78,963     $ 68,995  
    Adjustment to FTE     2,272       2,186  
    Interest income adjusted to FTE (non-GAAP)     81,235       71,181  
    Interest expense (GAAP)     33,472       21,849  
    Net interest income adjusted to FTE (non-GAAP)   $ 47,763     $ 49,332  
                     
    Efficiency Ratio (non-GAAP)                
    Non-interest expenses (GAAP)   $ 41,146     $ 39,066  
                     
    Net interest income (GAAP)     45,491       47,146  
    Plus: taxable equivalent adjustment     2,272       2,186  
    Non-interest income (GAAP)     14,167       13,349  
    Net interest income (FTE) plus non-interest income (non-GAAP)   $ 61,930     $ 62,681  
    Efficiency ratio (non-GAAP) (1)     66.44 %     62.33 %
    (1) The reported efficiency ratio is a non-GAAP measure calculated by dividing non-interest expense by the sum of net interest income, on an FTE basis, and adjusted non-interest (loss) income.                
                     
    Pre-Provision Net Revenue to Average Assets                
    Income before taxes (GAAP)   $ 17,212     $ 20,149  
    Plus: Provision for credit losses     1,300       1,280  
    Total pre-provision net revenue (non-GAAP)   $ 18,512     $ 21,429  
    Total (annualized) (non-GAAP)   $ 24,661     $ 28,650  
                     
    Average assets   $ 2,469,627     $ 2,405,100  
    Pre-Provision Net Revenue to Average Assets (non-GAAP)     1.00 %     1.19 %

    The MIL Network

  • MIL-OSI: Stifel Reports Third Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    ST. LOUIS, Oct. 23, 2024 (GLOBE NEWSWIRE) — Stifel Financial Corp. (NYSE: SF) today reported net revenues of $1.2 billion for the three months ended September 30, 2024, compared with $1.0 billion a year ago. Net income available to common shareholders was $149.2 million, or $1.34 per diluted common share, compared with $58.8 million, or $0.52 per diluted common share for the third quarter of 2023. Non-GAAP net income available to common shareholders was $166.3 million, or $1.50 per diluted common share for the third quarter of 2024.

    Ronald J. Kruszewski, Chairman and Chief Executive Officer, said “The third quarter represented our second highest quarterly net revenue, an increase of 17%, while earnings per share increased 150%. Through the first three quarters of 2024, net revenue was up 13% to a record $3.6 billion, driven by continued growth in Global Wealth, improvement in our Institutional business, and the stabilization of net interest income. Our financial results illustrate the strength of the Stifel franchise and our ability to capitalize on improving market conditions. Momentum in our business continues to build and we anticipate further upside to both the top and bottom lines in the fourth quarter and in 2025.”

    Highlights

    • The Company reported net revenues of $1.2 billion, the second best revenue quarter in its history, driven by higher investment banking revenues, asset management revenues, and transactional revenues, partially offset by lower net interest income.
    • Non-GAAP net income available to common shareholders of $1.50 per diluted common share was negatively impacted by elevated provisions for legal matters of $0.10 per diluted common share (after-tax).
    • Investment banking revenues increased 66% over the year-ago quarter, driven by higher capital raising and advisory revenues.
      • Capital raising revenues increased 114% over the year-ago quarter.
      • Advisory revenues increased 41% over the year-ago quarter.
    • Record asset management revenues, up 15% over the year-ago quarter.
    • Record client assets of $496.3 billion, up 20% over the year-ago quarter.
    • Recruited 28 financial advisors during the quarter, including 13 experienced employee advisors.
    • Non-GAAP pre-tax margin of 19.2% as the Company maintained its focus on expense discipline, while continuing to invest in the business.
    • Annualized return on tangible common equity (ROTCE) (5) of 20%.
    • Tangible book value per common share (7) of $33.62, up 12% from prior year.
    Financial Summary (Unaudited)
    (000s) 3Q 2024 3Q 2023 9m 2024 9m 2023
    GAAP Financial Highlights:      
    Net revenues $ 1,224,668   $ 1,045,051   $ 3,605,638   $ 3,202,565  
    Net income (1) $ 149,185   $ 58,840   $ 459,413   $ 332,091  
    Diluted EPS (1) $ 1.34   $ 0.52   $ 4.16   $ 2.91  
    Comp. ratio   58.6 %   58.7 %   58.8 %   58.7 %
    Non-comp. ratio   23.7 %   30.8 %   22.8 %   25.7 %
    Pre-tax margin   17.7 %   10.5 %   18.4 %   15.6 %
    Non-GAAP Financial Highlights:      
    Net revenues $ 1,225,351   $ 1,045,028   $ 3,606,330   $ 3,202,539  
    Net income (1)(2) $ 166,270   $ 67,413   $ 506,186   $ 364,937  
    Diluted EPS (1) (2) $ 1.50   $ 0.60   $ 4.58   $ 3.20  
    Comp. ratio (2)   58.0 %   58.0 %   58.0 %   58.0 %
    Non-comp. ratio (2)   22.8 %   30.2 %   22.1 %   24.9 %
    Pre-tax margin (3)   19.2 %   11.8 %   19.9 %   17.1 %
    ROCE (4)   13.7 %   5.8 %   14.4 %   10.4 %
    ROTCE (5)   19.5 %   8.5 %   20.7 %   15.1 %
    Global Wealth Management (assets and loans in millions)  
    Net revenues $ 827,116   $ 768,558   $ 2,418,751   $ 2,283,934  
    Pre-tax net income $ 301,703   $ 298,449   $ 891,624   $ 914,462  
    Total client assets $ 496,298   $ 412,458      
    Fee-based client assets $ 190,771   $ 150,982      
    Bank loans (6) $ 20,633   $ 20,435      
    Institutional Group        
    Net revenues $ 372,401   $ 256,888   $ 1,114,498   $ 867,025  
    Equity $ 222,459   $ 144,764   $ 646,570   $ 508,371  
    Fixed Income $ 149,942   $ 112,124   $ 467,928   $ 358,654  
    Pre-tax net income/ (loss) $ 41,797   ($ 27,804 ) $ 127,719   ($ 5,671 )
    Global Wealth Management
     

    Global Wealth Management reported record net revenues of $827.1 million for the three months ended September 30, 2024 compared with $768.6 million during the third quarter of 2023. Pre-tax net income was $301.7 million compared with $298.4 million in the third quarter of 2023.

    Highlights

    • Recruited 28 financial advisors during the quarter, including 13 experienced employee advisors, with total trailing 12 month production of $10.5 million.
    • Client assets of $496.3 billion, up 20% over the year-ago quarter.
    • Fee-based client assets of $190.8 billion, up 26% over the year-ago quarter.

    Net revenues increased 8% from a year ago:

    • Transactional revenues increased 16% over the year-ago quarter reflecting an increase in client activity.
    • Asset management revenues increased 15% over the year-ago quarter due to higher asset values and net new assets.
    • Net interest income decreased 11% from the year-ago quarter driven by changes in deposit mix, partially offset by higher yields on the investment portfolio and lending growth.

    Total Expenses:

    • Compensation expense as a percent of net revenues increased to 48.7% primarily as a result of higher compensable revenues.
    • Provision for credit losses decreased from the year-ago quarter primarily as a result of lower provisions in the real estate sector compared to the year-ago quarter, partially offset by growth in the loan portfolio.
    • Non-compensation operating expenses as a percent of net revenues increased to 14.8% primarily as a result of higher litigation-related expenses, partially offset by revenue growth over the year-ago quarter.
    Summary Results of Operations
    (000s) 3Q 2024 3Q 2023
    Net revenues $ 827,116   $ 768,558  
    Transactional revenues   192,727     165,547  
    Asset management   382,309     333,088  
    Net interest income   240,825     269,431  
    Investment banking   6,217     3,895  
    Other income   5,038     (3,403 )
    Total expenses $ 525,413   $ 470,109  
    Compensation expense   403,205     359,325  
    Provision for credit losses   5,287     9,992  
    Non-comp. opex   116,921     100,792  
    Pre-tax net income $ 301,703   $ 298,449  
    Compensation ratio   48.7 %   46.8 %
    Non-compensation ratio   14.8 %   14.4 %
    Pre-tax margin   36.5 %   38.8 %
    Institutional Group
     

    Institutional Group reported net revenues of $372.4 million for the three months ended September 30, 2024 compared with $256.9 million during the third quarter of 2023. Institutional Group reported pre-tax net income of $41.8 million for the three months ended September 30, 2024 compared with pre-tax net loss of $27.8 million in the third quarter of 2023.

    Highlights

    Investment banking revenues increased 66% from a year ago:

    • Advisory revenues increased from the year-ago quarter driven by higher levels of completed advisory transactions.
    • Fixed income capital raising revenues more than doubled over the year-ago quarter primarily driven by higher bond issuances.
    • Equity capital raising revenues increased significantly over the year-ago quarter driven by higher volumes.

    Fixed income transactional revenues increased 17% from a year ago:

    • Fixed income transactional revenues increased from the year-ago quarter driven by improved client engagement and volatility.

    Equity transactional revenues increased 4% from a year ago:

    • Equity transactional revenues increased from the year-ago quarter primarily driven by an increase in equities trading commissions.

    Total Expenses:

    • Compensation expense as a percent of net revenues decreased to 60.3% primarily as a result of higher revenues.
    • Non-compensation operating expenses as a percent of net revenues decreased to 28.5% primarily as a result of revenue growth and expense discipline.
    Summary Results of Operations
    (000s) 3Q 2024 3Q 2023
    Net revenues $ 372,401   $ 256,888  
    Investment banking   236,965     142,991  
    Advisory   136,857     97,272  
    Fixed income capital raising   49,364     24,670  
    Equity capital raising   50,744     21,049  
    Fixed income transactional   78,974     67,439  
    Equity transactional   48,824     46,930  
    Other   7,638     (472 )
    Total expenses $ 330,604   $ 284,692  
    Compensation expense   224,556     192,638  
    Non-comp. opex.   106,048     92,054  
    Pre-tax net income/(loss) $ 41,797   ($ 27,804 )
    Compensation ratio   60.3 %   75.0 %
    Non-compensation ratio   28.5 %   35.8 %
    Pre-tax margin   11.2 %   (10.8 %)
    Other Matters
     

    Highlights

    • During the third quarter, the Company’s 4.25% Senior Notes matured resulting in the retirement of the $500.0 million outstanding balance.
    • The Company repurchased $20.2 million of its outstanding common stock during the third quarter.
    • Weighted average diluted shares outstanding decreased primarily as a result of share repurchases. The Company has repurchased 3.7 million shares under its share repurchase program since the third quarter of 2023.
    • The Board of Directors declared a $0.42 quarterly dividend per share payable on September 17, 2024 to common shareholders of record on September 3, 2024.
    • The Board of Directors declared a quarterly dividend on the outstanding shares of the Company’s preferred stock payable on September 17, 2024 to shareholders of record on September 3, 2024.
      3Q 2024 3Q 2023
    Common stock repurchases    
    Repurchases (000s) $20,222 $118,810
    Number of shares (000s) 249 1,886
    Average price $81.23 $63.00
    Period end shares (000s) 102,313 103,120
    Weighted average diluted shares outstanding (000s) 110,994 113,195
    Effective tax rate 26.8% 37.7%
    Stifel Financial Corp. (8)    
    Tier 1 common capital ratio 15.0% 13.9%
    Tier 1 risk based capital ratio 17.9% 16.9%
    Tier 1 leverage capital ratio 11.3% 10.8%
    Tier 1 capital (MM) $4,159 $3,914
    Risk weighted assets (MM) $23,184 $23,219
    Average assets (MM) $36,813 $36,356
    Quarter end assets (MM) $38,935 $37,878
    Agency Rating Outlook
    Fitch Ratings BBB+ Stable
    S&P Global Ratings BBB Stable
     

    Conference Call Information

    Stifel Financial Corp. will host its third quarter 2024 financial results conference call on Wednesday, October 23, 2024, at 9:30 a.m. Eastern Time. The conference call may include forward-looking statements.

    All interested parties are invited to listen to Stifel’s Chairman and CEO, Ronald J. Kruszewski, by dialing (866) 409-1555 and referencing conference ID 7408307. A live audio webcast of the call, as well as a presentation highlighting the Company’s results, will be available through the Company’s web site, http://www.stifel.com. For those who cannot listen to the live broadcast, a replay of the broadcast will be available through the above-referenced web site beginning approximately one hour following the completion of the call.

    Company Information

    Stifel Financial Corp. (NYSE: SF) is a financial services holding company headquartered in St. Louis, Missouri, that conducts its banking, securities, and financial services business through several wholly owned subsidiaries. Stifel’s broker-dealer clients are served in the United States through Stifel, Nicolaus & Company, Incorporated, including its Eaton Partners and Miller Buckfire & Co., LLC business divisions; Keefe, Bruyette & Woods, Inc.; and Stifel Independent Advisors, LLC; in Canada through Stifel Nicolaus Canada Inc.; and in the United Kingdom and Europe through Stifel Nicolaus Europe Limited. The Company’s broker-dealer affiliates provide securities brokerage, investment banking, trading, investment advisory, and related financial services to individual investors, professional money managers, businesses, and municipalities. Stifel Bank and Stifel Bank & Trust offer a full range of consumer and commercial lending solutions. Stifel Trust Company, N.A. and Stifel Trust Company Delaware, N.A. offer trust and related services. To learn more about Stifel, please visit the Company’s website at http://www.stifel.com. For global disclosures, please visit http://www.stifel.com/investor-relations/press-releases.

    A financial summary follows. Financial, statistical and business-related information, as well as information regarding business and segment trends, is included in the financial supplement. Both the earnings release and the financial supplement are available online in the Investor Relations section at http://www.stifel.com/investor-relations.

    The information provided herein and in the financial supplement, including information provided on the Company’s earnings conference calls, may include certain non-GAAP financial measures. The definition of such measures or reconciliation of such measures to the comparable U.S. GAAP figures are included in this earnings release and the financial supplement, both of which are available online in the Investor Relations section at http://www.stifel.com/investor-relations.

    Cautionary Note Regarding Forward-Looking Statements

    This earnings release contains certain statements that may be deemed to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements in this earnings release not dealing with historical results are forward-looking and are based on various assumptions. The forward-looking statements in this earnings release are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among other things, the following possibilities: the ability to successfully integrate acquired companies or the branch offices and financial advisors; a material adverse change in financial condition; the risk of borrower, depositor, and other customer attrition; a change in general business and economic conditions; changes in the interest rate environment, deposit flows, loan demand, real estate values, and competition; changes in accounting principles, policies, or guidelines; changes in legislation and regulation; other economic, competitive, governmental, regulatory, geopolitical, and technological factors affecting the companies’ operations, pricing, and services; and other risk factors referred to from time to time in filings made by Stifel Financial Corp. with the Securities and Exchange Commission. For information about the risks and important factors that could affect the Company’s future results, financial condition and liquidity, see “Risk Factors” in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. Forward-looking statements speak only as to the date they are made. The Company disclaims any intent or obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

    Summary Results of Operations (Unaudited)
     
      Three Months Ended   Nine Months Ended
    (000s, except per share amounts) 9/30/2024 9/30/2023 % Change 6/30/2024 % Change 9/30/2024 9/30/2023 % Change
    Revenues:                
    Commissions $ 183,445 $ 165,075 11.1   $ 183,317 0.1   $ 552,238 $ 499,983   10.5  
    Principal transactions   137,089   114,841 19.4     153,574 (10.7 )   429,677   336,063   27.9  
    Investment banking   243,182   146,887 65.6     233,281 4.2     690,412   525,591   31.4  
    Asset management   382,616   333,127 14.9     380,757 0.5     1,130,849   968,960   16.7  
    Other income   18,705   459 nm     16,180 15.6     39,835   (940 ) nm  
    Operating revenues   965,037   760,389 26.9     967,109 (0.2 )   2,843,011   2,329,657   22.0  
    Interest revenue   510,823   505,198 1.1     498,152 2.5     1,515,803   1,439,532   5.3  
    Total revenues   1,475,860   1,265,587 16.6     1,465,261 0.7     4,358,814   3,769,189   15.6  
    Interest expense   251,192   220,536 13.9     247,329 1.6     753,176   566,624   32.9  
    Net revenues   1,224,668   1,045,051 17.2     1,217,932 0.6     3,605,638   3,202,565   12.6  
    Non-interest expenses:                
    Compensation and benefits   718,065   613,287 17.1     722,719 (0.6 )   2,120,479   1,880,144   12.8  
    Non-compensation operating expenses   289,945   322,335 (10.0 )   268,319 8.1     822,916   821,724   0.1  
    Total non-interest expenses   1,008,010   935,622 7.7     991,038 1.7     2,943,395   2,701,868   8.9  
    Income before income taxes   216,658   109,429 98.0     226,894 (4.5 )   662,243   500,697   32.3  
    Provision for income taxes   58,153   41,268 40.9     61,600 (5.6 )   174,869   140,645   24.3  
    Net income   158,505   68,161 132.5     165,294 (4.1 )   487,374   360,052   35.4  
    Preferred dividends   9,320   9,321 (0.0 )   9,321 (0.0 )   27,961   27,961   0.0  
    Net income available to common shareholders $ 149,185 $ 58,840 153.5   $ 155,973 (4.4 ) $ 459,413 $ 332,091   38.3  
    Earnings per common share:                
    Basic $ 1.43 $ 0.55 160.0   $ 1.50 (4.7 ) $ 4.41 $ 3.09   42.7  
    Diluted $ 1.34 $ 0.52 157.7   $ 1.41 (5.0 ) $ 4.16 $ 2.91   43.0  
    Cash dividends declared per common share $ 0.42 $ 0.36 16.7   $ 0.42 0.0   $ 1.26 $ 1.08   16.7  
    Weighted average number of common shares outstanding:          
    Basic   103,966   106,068 (2.0 )   104,150 (0.2 )   104,135   107,580   (3.2 )
    Diluted   110,994   113,195 (1.9 )   110,285 0.6     110,457   114,170   (3.3 )
    Non-GAAP Financial Measures (9)
     
      Three Months Ended Nine Months Ended
    (000s, except per share amounts) 9/30/2024 9/30/2023 9/30/2024 9/30/2023
    GAAP net income $ 158,505   $ 68,161   $ 487,374   $ 360,052  
    Preferred dividend   9,320     9,321     27,961     27,961  
    Net income available to common shareholders   149,185     58,840     459,413     332,091  
             
    Non-GAAP adjustments:        
    Merger-related (10)   17,950     13,771     43,925     46,301  
    Restructuring and severance (11)   1,261         11,222      
    Provision for income taxes (12)   (2,126 )   (5,198 )   (8,374 )   (13,455 )
    Total non-GAAP adjustments   17,085     8,573     46,773     32,846  
    Non-GAAP net income available to common shareholders $ 166,270   $ 67,413   $ 506,186   $ 364,937  
             
    Weighted average diluted shares outstanding   110,994     113,195     110,457     114,170  
             
    GAAP earnings per diluted common share $ 1.42   $ 0.60   $ 4.42   $ 3.15  
    Non-GAAP adjustments   0.16     0.08     0.42     0.29  
    Non-GAAP earnings per diluted common share $ 1.58   $ 0.68   $ 4.84   $ 3.44  
             
    GAAP earnings per diluted common share available to common shareholders $ 1.34   $ 0.52   $ 4.16   $ 2.91  
    Non-GAAP adjustments   0.16     0.08     0.42     0.29  
    Non-GAAP earnings per diluted common share available to common shareholders $ 1.50   $ 0.60   $ 4.58   $ 3.20  
    GAAP to Non-GAAP Reconciliation (9)
     
      Three Months Ended Nine Months Ended
    (000s) 9/30/2024 9/30/2023 9/30/2024 9/30/2023
    GAAP compensation and benefits $ 718,065   $ 613,287   $ 2,120,479   $ 1,880,144  
    As a percentage of net revenues   58.6 %   58.7 %   58.8 %   58.7 %
    Non-GAAP adjustments:        
    Merger-related (10)   (6,101 )   (7,171 )   (17,398 )   (22,947 )
    Restructuring and severance (11)   (1,261 )       (11,222 )    
    Total non-GAAP adjustments   (7,362 )   (7,171 )   (28,620 )   (22,947 )
    Non-GAAP compensation and benefits $ 710,703   $ 606,116   $ 2,091,859   $ 1,857,197  
    As a percentage of non-GAAP net revenues   58.0 %   58.0 %   58.0 %   58.0 %
             
    GAAP non-compensation expenses $ 289,945   $ 322,335   $ 822,916   $ 821,724  
    As a percentage of net revenues   23.7 %   30.8 %   22.8 %   25.7 %
    Non-GAAP adjustments:        
    Merger-related (10)   (11,166 )   (6,623 )   (25,835 )   (23,380 )
    Non-GAAP non-compensation expenses $ 278,779   $ 315,712   $ 797,081   $ 798,344  
    As a percentage of non-GAAP net revenues   22.8 %   30.2 %   22.1 %   24.9 %
    Total adjustments $ 19,211   $ 13,771   $ 55,147   $ 46,301  
    Footnotes
     
    (1) Represents available to common shareholders.
    (2) Reconciliations of the Company’s GAAP results to these non-GAAP measures are discussed within and under “Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliation.”
    (3) Non-GAAP pre-tax margin is calculated by adding total non-GAAP adjustments and dividing it by non-GAAP net revenues. See “Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliation.”
    (4) Return on average common equity (“ROCE”) is calculated by dividing annualized net income applicable to common shareholders by average common shareholders’ equity or, in the case of non-GAAP ROCE, calculated by dividing non-GAAP net income applicable to commons shareholders by average common shareholders’ equity.
    (5) Return on average tangible common equity (“ROTCE”) is calculated by dividing annualized net income applicable to common shareholders by average tangible shareholders’ equity or, in the case of non-GAAP ROTCE, calculated by dividing non-GAAP net income applicable to common shareholders by average tangible common equity. Tangible common equity, also a non-GAAP financial measure, equals total common shareholders’ equity less goodwill and identifiable intangible assets and the deferred taxes on goodwill and intangible assets. Average deferred taxes on goodwill and intangible assets was $77.9 million and $67.4 million as of September 30, 2024 and 2023, respectively.
    (6) Includes loans held for sale.
    (7) Tangible book value per common share represents shareholders’ equity (excluding preferred stock) divided by period end common shares outstanding. Tangible common shareholders’ equity equals total common shareholders’ equity less goodwill and identifiable intangible assets and the deferred taxes on goodwill and intangible assets.
    (8) Capital ratios are estimates at time of the Company’s earnings release, October 23, 2024.
    (9) The Company prepares its Consolidated Financial Statements using accounting principles generally accepted in the United States (U.S. GAAP). The Company may disclose certain “non-GAAP financial measures” in the course of its earnings releases, earnings conference calls, financial presentations and otherwise. The Securities and Exchange Commission defines a “non-GAAP financial measure” as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject to adjustments that effectively exclude, or include, amounts from the most directly comparable measure calculated and presented in accordance with U.S. GAAP. Non-GAAP financial measures disclosed by the Company are provided as additional information to analysts, investors and other stakeholders in order to provide them with greater transparency about, or an alternative method for assessing the Company’s financial condition or operating results. These measures are not in accordance with, or a substitute for U.S. GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever the Company refers to a non-GAAP financial measure, it will also define it or present the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, along with a reconciliation of the differences between the non-GAAP financial measure it references and such comparable U.S. GAAP financial measure.
    (10) Primarily related to charges attributable to integration-related activities, signing bonuses, amortization of restricted stock awards, debentures, and promissory notes issued as retention, additional earn-out expense, and amortization of intangible assets acquired. These costs were directly related to acquisitions of certain businesses and are not representative of the costs of running the Company’s on-going business.
    (11) The Company recorded severance costs associated with workforce reductions in certain of its foreign subsidiaries.
    (12) Primarily represents the Company’s effective tax rate for the period applied to the non-GAAP adjustments.

    Media Contact: Neil Shapiro (212) 271-3447 | Investor Contact: Joel Jeffrey (212) 271-3610 | http://www.stifel.com/investor-relations

    The MIL Network

  • MIL-OSI NGOs: UK: Make it a compassionate Christmas with Amnesty’s new retail range

    Source: Amnesty International –

    Shop for Christmas gifts that support defending human rights 

    Hundreds of products mean sustainable and ethical shopping couldn’t be easier 

    ‘A gift from the Amnesty festive range works as a present two-fold, as every purchase help us continue defending human rights and fighting atrocities around the globe’ – Sacha Deshmukh 

    Samples and high-res images available 

    Amnesty International UK has launched its Christmas catalogue with hundreds of ethically sourced and imaginative gift ideas that will delight recipients and support communities around the world. 

    Shoppers can choose from a wide range of sustainable, festive cards with each set of ten featuring the message inside of ‘Season’s Greetings’ in nine different languages – Russian, Chinese, Irish, Scots Gaelic, English, Welsh, Arabic, French and Spanish.  

    For those who want to impress an interior-design aficionado in their life, there are dazzling décor options from patchwork kantha throws, recycled sari hanging wreaths to Chara hammered vases, which have been handmade in India. 

    For friends and family who enjoy seasonal snacks there are tantalising treats to be snapped up from chocolates and fudge to spicy sauces.  And for the lovers of kitchen kits and culinary curios, options include beautiful recycled Izaan spice jars, tea-towels emblazoned with powerful prints and charming handmade bread baskets, handwoven in Vietnam using water hyacinth. 

    Amnesty is also showcasing their own range of handmade bath and body care for those who deserve a little luxury, with options of wellbeing gift sets, vegan lip balms and natural soaps. 

    Gift-grabbers can also peruse garden gifts for the green-fingered, the stunning collection of elegant fairtrade jewellery, children’s toys, gifts and organic cotton clothing and a cosy range of knitwear – seasonal socks included, of course! 

    Sacha Deshmukh, Amnesty International UK’s Chief Executive, said: 

    “A gift from the Amnesty Christmas range works as a present two-fold, as every purchase helps us continue defending human rights and fighting atrocities around the globe. 

    “The unique and beautiful products featured provide much-needed support to the incredible craft-makers and will connect the lucky recipients to global communities from their home.” 

    With prices to suit all shoppers, more highlights from the 2024 catalogue include: 

    Guatemalan Christmas Angel: A charming and unique tree decoration. 

    The World in your Kitchen 2025 Calendar: Every month features a new vegetarian recipe accompanied by a beautiful illustration. 

    Gaza collection: Tote bags, T-shirts and candles created by Aya Mobaydeen, an illustrator from Amman, Jordan, in collaboration with Amnesty. 

    These Rights are your Rights: With a foreword by Angelina Jolie, this paperback guide to child rights is packed with fun facts, top tips, comic illustrations by Sue Cheung and inspiring stories of young activists from around the world. 

    Virtual gifts:   For minimum fuss and maximum impact, money raised from Amnesty’s virtual gifts will be used wherever its needed most, from responding to crisis and conflict, campaigning for refugee rights, or educating the next generation of leaders and change makers. Shoppers can choose either e-card or traditional greeting card’ 

    Products can be purchased online, by phone or by post. Free packaging and posting is available on all orders over £75. 

    For more information, please visit: https://amnestyshop.org.uk/ 

     

    MIL OSI NGO

  • MIL-OSI Europe: Swedish Minister for Health Care and Ukrainian Minister of Health sign agreement on continued support to Ukraine’s path to the EU and its health care

    Source: Government of Sweden

    Minister for Health Care Acko Ankarberg Johansson and Ukrainian Minister of Health Viktor Liashko have signed a technical agreement between Sweden and Ukraine. The aim is to intensify cooperation and advance Ukraine’s process of integration into the EU. Ms Ankarberg Johansson also visited several care facilities in Kyiv, including the Okhmatdyt children’s hospital that Russia attacked in July.

    “The Government has made clear that Swedish support to Ukraine will continue for as long as necessary. This includes the area of health care, which is an essential part of the country’s resilience and reforms. For me it was important to be here on the ground and show my support and that of the entire Government to the war-affected country,” said Ms Ankarberg Johansson.

    The agreement covers matters such as cooperation on transfer of knowledge to healthcare staff, efforts to combat antimicrobial resistance and exchange of experience of rehabilitation for Ukrainians affected by the war. It also covers cooperation and capacity-building aimed at supporting reforms that are required for EU integration in areas such as medicines.

    The ministers signed the agreement at Ukraine’s Ministry of Health. It builds on earlier agreements between the countries.

    Ukrainian translation of Swedish handbook on spinal cord injury

    Ms Ankarberg Johansson visited a hospital in Kyiv, where Spinalis Foundation co-founder Professor Claes Hultling presented the Ukrainian translation of the Foundation’s handbook A new page of life with spinal cord injury. Speakers during the presentation included First Lady of Ukraine Olena Zelenska, Mr Liashko, Ms Ankarberg Johansson and Professor Hultling.

    The Spinalis Foundation promotes research and rehabilitation of spinal injuries. 

    During the visit in Kyiv, Spinalis concluded an agreement on international medical partnership with the Rivne Regional Hospital for Veterans of War.

    Visit to bombed children’s hospital

    Ukraine’s largest children’s hospital, Okhmatdyt, is located in Kyiv. It was the target of a Russian missile attack on 8 July 2024, and a major portion of the hospital was destroyed in the attack and is in need of reconstruction. Ms Ankarberg Johansson was given a tour of the destruction and met with patients at the hospital.

    The Government has provided nearly SEK 10 million in support to help rebuild the children’s hospital. This support goes to the volunteer organisation Beredskapslyftet, which together with Astrid Lindgren’s Children’s Hospital at Karolinska University Hospital initiated the project and is responsible for purchasing equipment.

    Following the attack, the Government decided to provide immediate humanitarian aid, which was channelled via the United Nations Children’s Fund (UNICEF) and distributed directly to the affected children and their families.

    Ms Ankarberg Johansson’s visit to Kyiv took place on 15–16 October. During her stay, she also visited a primary care clinic in Makariv that was rebuilt following an attack in March 2022 and met with injured soldiers who had undergone surgical reconstruction at a military hospital. Ms Ankarberg Johansson later stopped by the pharmaceutical company Farmak and attended the conference ‘European Integration of Ukraine: Healthcare’ to deliver an opening address.

    MIL OSI Europe News

  • MIL-OSI United Kingdom: expert reaction to MHRA and NICE news on donanemab for Alzheimer’s disease

    Source: United Kingdom – Executive Government & Departments

    Scientists comment on MHRA saying ‘Donanemab licensed for treatment of Alzheimer’s disease in some adults’, and NICE draft guidance saying ‘Donanemab does not currently demonstrate value for the NHS’.

    Prof Andrew Doig, Professor of Biochemistry, University of Manchester, said

    “Donanemab is a new drug for Alzheimer’s Disease (AD) which tackles the build-up of a form of amyloid-β in the brain, the likely root cause of AD. It is an antibody that is administered through a needle inserted into a vein. Donanemab was tested with a clinical trial on about 2000 people with early-stage AD, run over 18 months.

    “Donanemab shows real benefit to patients with mild AD by slowing down cognitive decline. The benefits are small, however, and there are concerns with the drug. Firstly, donanemab is not a cure for AD and it does not reverse, or even halt, the disease. All it does is to slow down the rate at which the disease progresses, as measured by loss of memory and other cognitive skills. In effect, patients who take donanemab see a delay to their loss of brain function by around six months. Secondly, carrying out a diagnosis to see who is eligible to take donanemab can only be carried out by a PET scan, similar an MRI scan, or by analysing cerebrospinal fluid, carried out by a lumbar puncture. These diagnosis methods are expensive and can be unpleasant for patients, so are not routinely available. Genetic tests to check that a patient is eligible for the drug are also useful. Thirdly, there is a small, but real risk, that donanemab can cause swelling or bleeding in the brain. About a quarter of patients in the trial showed evidence of this. Finally, the cost of the drug is very high, as is the cost of administering the drugs, as it requires regular MRI scans. Given the small benefits and high costs of the drug, NICE has not approved donanemab. NHS resources are limited (e.g. MRI machines) and are better spent elsewhere.

    “This decision will be disappointing for patients and carers who are living with the burden of this horrible disease that has no cure. Nevertheless, there is hope. Better diagnostic methods are in development, such as a simple blood test, which would mean that PET scans or lumbar punctures are not needed. Donanemab has not been ruled out forever and this decision could change. We will continue to track how well it works over longer time periods. Costs may also come down. In addition, many other AD therapies, such as other antibodies are on the way. Some of them are likely to work better than donanemab and could be approved.

    “Donanemab and other related drugs have shown that it is possible to slow cognitive decline caused by AD. They therefore point the way to a future where AD can be treated, bringing benefit to millions of people.”

     

    Prof B. Paul Morgan, UK Dementia Research Institute Cardiff, Cardiff University, said:

    “NICE has reached the decision that the Alzheimer’s drug Donanemab, despite having a modest effect on rate of disease progression, does not clear the clinical benefit and cost-effectiveness hurdles for approval for use in the NHS.  The drug requires monthly infusions and carries significant risk of side effects, necessitating very close monitoring using imaging and other expensive tests.

    “The decision is not surprising in that it closely mirrors that made for another Alzheimer’s drug, Lecanemab, in August.  Both drugs are monoclonal antibodies that target amyloid, the main component of the plaques that develop in the brain in Alzheimer’s disease. They differ subtly in that Lecanemab targets the soluble form of amyloid to prevent plaque formation while Donanemab targets amyloid aggregates in plaques. Nevertheless, both efficiently clear amyloid and have a similar slowing effect on progression of cognitive decline in patients. Both also share the same risks, notably an increase in inflammation in brain blood vessels that can lead to bleeding in the brain. 

    “The decision will be a disappointment to Alzheimer’s sufferers and their carers. It means that there are no disease-modifying drugs for Alzheimer’s currently approved in the UK. The decision also highlights the problems with the amyloid-targeting drugs – eye-wateringly expensive, difficult to administer and potentially harmful. Balancing these against a modest impact on the disease, the decision made by NICE is understandable.  These drugs are already in use in the US and elsewhere, albeit at lower than predicted uptake, and more will be learned from their wider use.  In particular, improvements in patient selection and monitoring may tip the balance in the future.

    “The final lesson from these disappointments is that we need better drugs for Alzheimer’s disease, moving beyond the focus on amyloid clearance and targeting other aspects of the disease that may provide better, safer and affordable routes to effective therapy of this awful disease.”

     

    Prof Rob Howard, Professor of Old Age Psychiatry, University College London (UCL), said:

    “NICE have made the correct and responsible decision that donanemab treatment within the NHS cannot be considered to represent a cost-effective use of resources. Importantly, the estimated potential value-based benefits of donanemab to patients with dementia and their families were between only a fifth and a sixth of the actual costs of buying and administering the treatment.

    “Although there is considerable uncertainty about both the meaningfulness of the very small benefits seen with treatment and any longer term effects beyond the 18 months of data collected in the pivotal trials, NHS access to these new drugs would not have made an appreciable difference to the experience of patients and families affected by dementia. 

    We have well-established drug treatments and psychosocial interventions for Alzheimer’s disease that are already available to people with dementia within the NHS but are not universally accessed. Our priority now should be to ensure that everyone with dementia who might benefit from these cost-effective interventions and adequately resourced adult social care services is able to access them. It would be unhelpful if the conversation about how we adequately fund NHS and social care for people with dementia was distracted by the issue of these new drugs. We should thank NICE for their leadership and clarity in this regard.”

     

    Prof Siddharthan Chandran, Director of the UK Dementia Research Institute, said: 

    “These first drugs are just the opening chapter for Alzheimer’s treatments. Today’s MHRA approval of donanemab is another step towards a future where we can begin to offer treatments to people affected by dementia. In this case, NICE’s initial recommendation is that the benefits of the drug are not significant enough to make it cost effective, which means it will not be available to patients on the NHS. This will be disappointing to many. However, I do believe we are at a pivotal moment in our research mission to develop better, safer treatments.

    “This is a long journey and is only possible because of long-term investment in research that underpins the identification and development of new treatments. The MRC-funded UK Dementia Research Institute is at the forefront of research into dementias, and working together with our many partners from patient charities, leading UK universities, the NHS and industry we are hopeful that major advances in diagnostics and treatments are ahead of us.”

     

    Prof Charles Marshall, Clinical Senior Lecturer and Honorary Consultant Neurologist, Queen Mary University of London (QMUL), said:

    “This will be very disappointing news for people affected by Alzheimer’s who are desperate for something that can slow the course of the disease. Hopefully, future developments will allow the introduction of treatments like this in the NHS. For this we will need investment in modernised dementia clinics that can deliver diagnosis and treatment appropriately, as well as evidence that Donanemab continues to slow Alzheimer’s disease over a longer time period, which could make it cost effective. We need NHS patients to be involved in generating this evidence so that we can see how effective Donanemab might be if used widely in the UK.”

     

    Prof Tara Spires-Jones, Director of the Centre for Discovery Brain Sciences at the University of Edinburgh, Group Leader in the UK Dementia Research Institute, and President of the British Neuroscience Association said:

    “While people living with dementia and their loved ones will undoubtedly be disappointed by the decision not to fund this new treatment on the NHS, the good news that new treatments can slow disease even a small amount is hopeful.  New research is bringing us closer to treatments that should be safer and more effective. This decision on the amyloid targeting drug donanemab is not a surprise as it is consistent with the recent recommendations for lecanemab, a very similar drug.  Donanemab is an antibody that removes amyloid pathology from the brain. This is not a cure. The treatment slows disease progression modestly but does not stop or reverse symptoms.  The treatment also comes with potentially serious side effects of brain swelling and brain bleeding.”

     

    Prof Tom Dening, Professor of Dementia Research, School of Medicine, University of Nottingham, said:

    “Given the MHRA and NICE positions previously stated on lecanemab, these decisions in relation to donanemab are hardly surprising. My personal position stands more with NICE, because I think that we don’t do enough to support people with dementia after they get a diagnosis, and the expensive monoclonal antibodies are a bit of a distraction from the main issue, which is to help people live the best lives they can with the diagnosis.”

    Professor Fiona Carragher, Chief Policy and Research Officer at Alzheimer’s Society, said: 

    “Disease-modifying therapies like donanemab and lecanemab offer a new horizon of hope in the fight against dementia. MHRA’s approval of donanemab marks another milestone in this journey, but it comes alongside a draft NICE decision not to recommend donanemab for use on the NHS. While this is disheartening, we respect the decision of the regulator. 

    “In other diseases like cancer, treatments have become more effective, safer and cheaper over time and we hope to see similar progress in dementia. 

    “With around 20 Alzheimer’s disease drugs in late-stage clinical trials, more drugs will be submitted for approval within the next few years. 

    “New treatments are an important catalyst for change, but they are only one piece of the puzzle. While preparing for the future, we must not lose sight of the million people living with dementia in the UK today – a third of whom don’t have a diagnosis. 

    “We need to see significant government investment to bring about radical change so that everyone with dementia in the UK can get an early and accurate diagnosis. Without this, people won’t be able to access existing treatments and interventions to help manage their symptoms today or be ready for the disease slowing treatments of tomorrow.” 

     

    Hilary Evans-Newton, Chief Executive at Alzheimer’s Research UK, said:

    “Today’s announcement marks another frustrating setback for people affected by Alzheimer’s disease. We finally have two new treatments licensed in Britain for Alzheimer’s, but it’s incredibly disappointing that NHS patients in England and Wales won’t receive them. While these drugs are not cures and come with risk of side effects, trials show they are the first treatments to slow the decline in memory and thinking skills linked to Alzheimer’s, rather than just alleviating symptoms.

    “NICE’s recent interim decisions on lecanemab and donanemab highlight uncertainty about their benefits compared to the significant costs of delivering them in the NHS. Yet dementia remains the UK’s leading cause of death, and without action, an ageing population means more families will be affected, driving up NHS costs through emergency admissions and care.

    “NHS England has identified nearly 30 other dementia treatments that could be available by 2030, giving the government and NHS a crucial opportunity to transform how dementia is treated – just as Labour pledged in their manifesto. But we still haven’t heard from Health Secretary Wes Streeting on how he plans to break the deadlock we’re facing, where research is delivering new treatments but they remain out of reach for NHS patients. We’ve written to the Health Secretary again, calling for his leadership to bring together NICE, NHS England and industry so that people with dementia in the UK aren’t left behind.

    “Today’s decision also risks signalling that the UK is no longer a good place to launch new dementia treatments. Although the UK has a strong history in dementia research, it currently hosts just 7% of global dementia trials and under 3% of participants in phase 3 trials for dementia worldwide live here. How the government tackles these challenges will show if they’re serious about bringing innovation to the NHS and cutting the red tape that is limiting people’s access to research and innovative medicines.”

    MHRA decision and NICE draft guidance on donanemab for Alzheimer’s disease was published at 10:00am UK time Wednesday 22nd October 2024. 

    https://www.nice.org.uk/guidance/indevelopment/gid-ta11221

    Declared interests

    Prof Andrew Doig: Andrew Doig is a Professor of Biochemistry at the University of Manchester. He is a founder and director of PharmaKure, a spin-out company working on diagnostics and drugs for Alzheimer’s Disease and other neurodegenerative conditions.

    Prof Rob Howard: I don’t have any relevant CoIs.

    Prof Charles Marshall: I have no relevant conflicts to declare.

    Prof Siddharthan Chandran: Siddharthan is the academic lead of Neurii, a £5M partnership to deliver patient focused digital health solutions for dementia, part funded by Eisai. The UK Dementia Research Institute holds partnerships with charities (BHF, Alzheimer’s Research UK, Alzheimer’s Society and LifeArc), and industry (Lilly, Eisai, Astex, SPARC and Ono).

    Hilary Evans-Newton No COI.

    Prof Tom Dening: No COI.

    Professor Fiona Carragher: No conflicts of interest.

    Prof Tara Spires-Jones: I have no conflicts with this study but have received payments for consulting, scientific talks, or collaborative research over the past 10 years from AbbVie, Sanofi, Merck, Scottish Brain Sciences, Jay Therapeutics, Cognition Therapeutics, Ono, and Eisai. I am also Charity trustee for the British Neuroscience Association and the Guarantors of Brain and serve as scientific advisor to several charities and non-profit institutions.

    For all other experts, no reply to our request for DOIs was received.

    MIL OSI United Kingdom

  • MIL-OSI Russia: Bashneft planted almost 750 thousand trees

    Translation. Region: Russian Federation –

    Source: Rosneft – Rosneft – An important disclaimer is at the bottom of this article.

    Bashneft, a Rosneft company, planted 748 thousand trees on an area of over 200 hectares in 2024. This is 45% more than the same indicator last year. The plantings took place in the Republic of Bashkortostan, the Khanty-Mansi Autonomous Okrug – Yugra and the Nenets Autonomous Okrug.

    Preserving the environment for future generations is an integral part of Rosneft’s corporate culture. The company implements large-scale environmental programs aimed at minimizing the impact on the environment, improving the environmental friendliness of production, preserving and replenishing natural ecosystems.

    Bashneft employees carried out landscaping of the territories in two stages: in the spring they planted 158 thousand trees on an area of 37 hectares, in the fall – 590 thousand seedlings on an area of 164 hectares.

    One of the key environmental actions this year was the planting of 24 thousand seedlings by employees of Bashneft-Dobycha (a subsidiary of Bashneft) in the Asly-Kul nature park in the Davlekanovsky district of Bashkiria. This is a continuation of a large-scale program aimed at preventing the swamping of Aslikul, the largest lake in Bashkortostan. Last fall, Bashkir oil workers began restoring the forest around the northwestern part of the reservoir. In total, the company’s employees planted 68 thousand pine seedlings and 10 thousand larch seedlings in this nature park, resulting in three forest areas with a total area of 19.5 hectares.

    Experts from the Biology Research Center of the Ufa Federal Research Center of the Russian Academy of Sciences believe that the creation of a coniferous forest in the northwestern part of Lake Aslikul will help stop the process of swamping of the banks and preserve the reservoir for future generations.

    In just the last 5 years, thanks to the initiatives of Bashkir oil workers, more than 5.2 million trees have been planted on an area of over 1.5 thousand hectares. Young green areas will soon form full-fledged coniferous forests, which will contribute to the restoration and preservation of the ecological balance.

    Reference:

    PJSC ANK Bashneft is one of the oldest enterprises in the country’s oil and gas industry, which is engaged in oil production, processing and marketing. Bashneft’s key assets, including an oil refining and petrochemical complex, are located in the Republic of Bashkortostan. Bashneft also conducts oil exploration and production in the Khanty-Mansiysk Autonomous Okrug – Yugra, Nenets Autonomous Okrug, Perm Krai, Orenburg Oblast and the Republic of Tatarstan.

    Department of Information and Advertising of PJSC NK Rosneft October 23, 2024

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News

  • MIL-OSI: Landsbankinn hf.: Financial results of Landsbankinn for the first nine months of 2024

    Source: GlobeNewswire (MIL-OSI)

    • Landsbankinn’s after-tax profit in the first nine months of 2024 amounted to ISK 26.9 billion, ISK 10.8 billion thereof in the third quarter.
    • Return on equity (ROE) was 11.7%, compared with 10.5% for the same period the previous year.
    • The net interest margin was 2.9% and the net interest margin of domestic households rises from 2% to 2.1% due to higher reserve requirements.
    • Net interest income amounted to ISK 44.1 billion and net fee & commission income was ISK 8.1 billion.
    • Net impairments were negative by ISK 2.0 billion, largely attributable to uncertainty about the financial impact of natural disaster on the Reykjanes peninsula.
    • The cost-income ratio was 32.3%, compared with 34.6% in the same period of 2023.
    • The total capital ratio was 24.1% at the end of the period. The total capital requirement of the Financial Supervisory Authority (FSA) of the Central Bank of Iceland is 20.4%.
    • In September, the FSA published the results of its assessment, finding that Landsbankinn is eligible to control a qualifying holding in TM tryggingar hf. (TM). The conclusion of the Icelandic Competition Authority in the same case is pending.

    Lilja Björk Einarsdóttir, CEO of Landsbankinn:

    “These results reflect sound operation and growing activity. The Bank is advancing in all areas and fee and commission income is robust in line with our focus on adding services and growing our market share. On-going development of Landsbankinn’s app and new features are clearly translating into increased use, not least among young customers. We see this in pension savings, for example, where growth in supplementary pension agreements with young people has reached 17.3% since the feature was added to the app. 

    While use of our digital solutions continues to grow, customers are still active in visiting the Bank to seek advice and other services offered in our branches and Customer Service Centre. We operate 35 branches and outlets around Iceland and are always happy to see our customers – in the past quarter, around 85,000 visits were logged with cashiers and advisors. We emphasise initiative in our customer relations and mortgage holders with the Bank, whose mortgages were nearing the end of a fixed-rate term, received a call from the Bank and a consultation offer.

    In recent years, higher interest rates have resulted in good returns on the Bank’s liquid assets yet also made funding more costly, especially with higher deposit rates which customers enjoy in the form of improved return on their savings. As an example, the most favourable deposit rates the Bank currently offers corporates are 8.64% on an annualised basis. The Bank’s net interest margin has narrowed since the previous quarter and the interest margin of households, which is the difference between non-indexed mortgage rates and interest on non-fixed term savings, is currently 2.1%.

    Robust lending growth this year to date has been somewhat surprising in light of high interest rate levels but funding to meet this increase has been successful, and delinquencies remain low. The Bank’s loan book has grown by ISK 155 billion, or 9.5%. Of the total, loans to retail customers represent ISK 53.6 billion, almost all in the form of mortgages. Because of increased demand for inflation-indexed mortgages and higher funding terms on indexed bonds, we have changed the availability of indexed mortgages to, among other things, reduce demand. We continue to offer the best terms among the domestic banks but now only offer equal payment mortgages to first-time buyers. While monthly payments will be higher for those who select indexed loans, asset formation will also be quicker. This allowed us to keep interest rate hikes moderate and we are of the opinion that this change is more positive for the majority of our customers.

    A recent green issuance in the amount of EUR 300 million was very successful, achieving the most favourable terms any Icelandic bank has gotten in quite some while. Part of the proceeds from the issuance will be allocated to repay older bonds issued at even more favourable terms so that the net impact is slightly higher funding cost for the Bank.

    We await the conclusion of the Icelandic Competition Authority in the matter of the Bank’s purchase of TM. In the interim, there are rules that limit communication between the companies. If the conclusion is positive, the Bank will finalise the purchase without delay and the project can get off to a full start. With the Bank’s purchase of TM, our aim is to offer customers even better and varied service through all our service channels.”

    Landsbankinn’s financial calendar

    • Annual results 2024 30 January 2025 
    • Annual General Meeting 19 March 2025
    • Q1 2025 30 April 2025
    • Q2 2025 17 July 2025
    • Q3 2025 23 October 2025
    • Annual results 2025 29 January 2026

    For further information contact:

    Public Relations, pr@landsbankinn.is

    Investor Relations, ir@landsbankinn.is

    Attachments

    The MIL Network

  • MIL-OSI: EBC Financial Group and the University of Oxford’s Department of Economics Announce WERD Episode on Macroeconomics and Climate

    Source: GlobeNewswire (MIL-OSI)

    OXFORD, United Kingdom, Oct. 23, 2024 (GLOBE NEWSWIRE) — EBC Financial Group (EBC) is proud to announce its continued collaboration with the University of Oxford’s Department of Economics for the 2024-2025 edition of the acclaimed “What Economists Really Do” (WERD) webinar series. The upcoming event will be the first WERD event to feature a dedicated panel discussion session in a hybrid setting, titled “Sustaining Sustainability: Balancing Economic Growth and Climate Resilience”. It also marks the second collaboration between EBC and the University of Oxford’s Department of Economics this year, following an earlier success in March. EBC’s ongoing collaboration with the University of Oxford’s Department of Economics builds on the success of their previous WERD webinar, which focused on The Economics of Tax Evasion. That session explored the impact of tax evasion on both global and local economies, highlighting the importance of financial literacy in addressing complex economic issues.

    The hybrid event will take place on 14 November 2024 at the Sir Michael Dummett Lecture Theatre, Christ Church College, and will bring together prominent thought leaders to discuss the intersection of economic policies and environmental sustainability.

    As global climate challenges intensify, this event comes at a critical time when the financial sector’s role in fostering sustainable development is under increased scrutiny. In today’s economic landscape, aligning financial strategies with environmental stewardship is essential. Through sponsoring this upcoming WERD episode, EBC will shift its focus toward addressing the pressing issues of climate resilience and sustainable economic growth. The panel discussion will explore how macroeconomic policies can help address some of the world’s most urgent environmental challenges while ensuring economic stability. This timely dialogue underscores EBC’s commitment to fostering discussions on how financial markets can lead the charge in sustainability.

    David Barrett, CEO of EBC Financial Group (UK) Ltd, expressed his enthusiasm for the ongoing collaboration: “We are excited to partner once more with the University of Oxford’s Department of Economics for the second episode of the ‘What Economists Really Do’ webinar series for the 2024-2025 edition. This collaboration embodies our commitment to advancing academic research and addressing the pressing issue of climate change through macroeconomic perspectives. At EBC Financial Group, we believe in the power of strategic partnerships to drive meaningful change, and we are proud to support such an esteemed partner in a collective mission to shape a more sustainable future.”

    Banu Demir Pakel, session moderator and the Associate Head of External Engagement and Associate Professor of Economics, added: “We are pleased to welcome EBC Financial Group back to sponsor another special episode of ‘What Economists Really Do’ (WERD). In the previous WERD episode, we welcomed David Barrett, CEO of EBC Financial Group (UK) Ltd to discuss ‘The Economics of Tax Evasion’—proving how invaluable industry insights can be to an academic discussion. On the basis of this success, we are looking forward to hosting a larger hybrid panel event with further guests from the industry, plus a keynote lecture from Professor Andrea Chiavari on the topic of ‘Macroeconomics and Climate.’ The Department of Economics is proud to facilitate thought-leadership discussions between academia and industry, and we are grateful for EBC’s ongoing support. We look forward to a prosperous event.”

    The University of Oxford’s Department of Economics is globally celebrated for its rigorous academic research and significant contributions to economic policy. Attendees will gain valuable insights into how macroeconomic principles can align with sustainable growth objectives, informed by perspectives from both academia and the financial sector. With discussions that bridge the gap between theory and practice, this event will provide a forward-looking view of how economic policies can uplift environmental resilience and ensure global economic stability. Participants will also hear from industry leaders about the practical steps businesses and institutions can and are taking to achieve sustainable growth.

    Embracing a Broader Vision of Sustainable Development
    EBC Financial Group’s support for this initiative comes at a time of strategic global expansion. With a growing presence in key financial hubs such as London, Hong Kong, Tokyo, Singapore, and Sydney, as well as emerging markets in Southeast Asia, Latin America, Africa, and India, EBC is committed to empowering local markets with financial solutions that are both robust and sustainable. By engaging with leading academic institutions like the University of Oxford’s Department of Economics, EBC aims to strengthen its role as a catalyst for positive change in regions that are traditionally underserved by major financial institutions.

    The proceeds from this year’s WERD event will support the Department and its goal to produce leading research and world-class education. Registration for the event is now open, offering both in-person and online access to accommodate a global audience. To reserve your spot, please visit this link.

    About EBC Financial Group
    Founded in the esteemed financial district of London, EBC Financial Group (EBC) is renowned for its comprehensive suite of services that includes financial brokerage, asset management, and comprehensive investment solutions. EBC has quickly established its position as a global brokerage firm, with an extensive presence in key financial hubs such as London, Hong Kong, Tokyo, Singapore, Sydney, the Cayman Islands, and across emerging markets in Latin America, Southeast Asia, Africa, and India. EBC caters to a diverse clientele of retail, professional, and institutional investors worldwide.

    Recognised by multiple awards, EBC prides itself on adhering to the leading levels of ethical standards and international regulation. EBC Financial Group’s subsidiaries are regulated and licensed in their local jurisdictions. EBC Financial Group (UK) Limited is regulated by the UK’s Financial Conduct Authority (FCA), EBC Financial Group (Cayman) Limited is regulated by the Cayman Islands Monetary Authority (CIMA), EBC Financial Group (Australia) Pty Ltd, and EBC Asset Management Pty Ltd are regulated by Australia’s Securities and Investments Commission (ASIC).

    At the core of EBC Group are seasoned professionals with over 30 years of profound experience in major financial institutions, having adeptly navigated through significant economic cycles from the Plaza Accord to the 2015 Swiss franc crisis. EBC champions a culture where integrity, respect, and client asset security are paramount, ensuring that every investor engagement is treated with the utmost seriousness it deserves.

    EBC is the Official Foreign Exchange Partner of FC Barcelona, offering specialised services in regions such as Asia, LATAM, the Middle East, Africa, and Oceania. EBC is also a partner of United to Beat Malaria, a campaign of the United Nations Foundation, aiming to improve global health outcomes. Starting February 2024, EBC supports the ‘What Economists Really Do’ public engagement series by Oxford University’s Department of Economics, demystifying economics, and its application to major societal challenges to enhance public understanding and dialogue.

    https://www.ebc.com/

    Media Contact:

    Savitha Ravindran
    Global Public Relations Manager (EMEA, LATAM)
    savitha.ravindran@ebc.com  

    Chyna Elvina
    Global Public Relations Manager (APAC, LATAM)
    chyna.elvina@ebc.com

    Douglas Chew
    Global Public Relations Lead
    douglas.chew@ebc.com

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/aaaa905a-4c02-44a0-bf7d-b8be3dec4b36

    The MIL Network

  • MIL-OSI: Lloyds Bank PLC: 2024 Q3 Interim Management Statement

    Source: GlobeNewswire (MIL-OSI)

    LONDON, Oct. 23, 2024 (GLOBE NEWSWIRE) —

    Lloyds Bank plc
    Q3 2024 Interim Management Statement
    23 October 2024

    Member of the Lloyds Banking Group

    FINANCIAL REVIEW

    Income statement

    The Group’s profit before tax for the first nine months of 2024 was £3,927 million, 27 per cent lower than the same period in 2023. This was driven by lower net interest income and higher operating expenses, partly offset by a lower impairment charge. Profit after tax was £2,727 million (nine months to 30 September 2023 £3,975 million).

    Total income for the first nine months of 2024 was £12,613 million, a decrease of 8 per cent on the same period in 2023. Within this, net interest income of £9,378 million was 10 per cent lower on the prior year, driven by a lower margin. The lower margin reflected anticipated headwinds due to deposit churn and asset margin compression, particularly in the mortgage book as it refinances in a lower margin environment. These factors were partially offset by benefits from higher structural hedge earnings as balances are reinvested in the higher rate environment.

    Other income amounted to £3,235 million in the nine months to 30 September 2024 compared to £3,268 million in the same period in 2023, with improved UK Motor Finance performance, reflecting growth following the acquisition of Tusker in the first quarter of 2023, increased fleet size and higher average rental value, partially offset by the impact of changes to commission arrangements with Scottish Widows.

    Operating expenses of £8,392 million were 13 per cent higher than in the prior year. This includes the impacts of higher operating lease depreciation, largely as a result of fleet growth, the depreciation of higher value vehicles and declines in used electric car prices, alongside higher ongoing strategic investment, accelerated severance charges and inflationary pressure. It also includes c.£0.1 billion relating to the sector-wide change in the charging approach for the Bank of England Levy taken in the first quarter. In the nine months to 30 September 2024, the Group recognised remediation costs of £118 million (nine months to 30 September 2023: £127 million), largely in relation to pre-existing programmes, with no further charges in respect of the FCA review of historical motor finance commission arrangements. The FCA confirmed in September 2024 its intention to set out next steps in its review in May 2025, including its assessment of the outcome of the Judicial Review and Court of Appeal decisions involving other market participants; the Group will assess the impact, if any, of these decisions.

    The impairment charge was £294 million compared with a £881 million charge in the nine months to 30 September 2023. The decrease reflects a larger credit from improvements to the Group’s economic outlook in the first half of the year, notably house price growth and through changes to the severe downside scenario methodology. The charge also benefitted from strong portfolio performance, a large debt sale write-back, and a release in Commercial Banking from loss rates used in the model. Asset quality remains strong with resilient credit performance.

    Balance sheet

    Total assets were £4,207 million higher at £609,612 million at 30 September 2024 compared to £605,405 million at 31 December 2023. Financial assets at amortised cost were £15,406 million higher at £503,477 million compared to £488,071 million at 31 December 2023 with increases in reverse repurchase agreements of £11,128 million and loans and advances to customers of £7,355 million, partly offset by a reduction in loans and advances to banks of £2,919 million. The increase in reverse repurchase agreements and the decrease in cash and balances at central banks by £17,984 million to £39,925 million reflected a change in the mix of liquidity holdings. The increase in loans and advances to customers included growth in UK mortgages, UK Retail unsecured loans, credit cards and the European retail business, partly offset by government-backed lending repayments in Commercial Banking. Financial assets at fair value through other comprehensive income were £5,032 million higher reflecting a change in the mix of liquidity holdings. Other assets increased by £1,864 million to £28,925 million, driven by higher settlement balances and higher operating lease assets reflecting continued motor finance growth.

    Total liabilities were £4,390 million higher at £569,364 million compared to £564,974 million at 31 December 2023. Customer deposits at £446,311 million have increased by £4,358 million since the end of 2023, driven by inflows to limited withdrawal and fixed term savings products, partly offset by a reduction in current account balances and an expected significant outflow in Commercial Banking. In addition, repurchase agreements at £41,370 million have increased by £3,668 million since the end of 2023. Debt securities in issue at amortised cost decreased by £7,369 million to £45,080 million at 30 September 2024. Amounts due to fellow Lloyds Banking Group undertakings increased by £1,510 million to £4,442 million at 30 September 2024. Other liabilities increased by £3,042 million to £12,926 million, driven by higher settlement balances.

    Total equity was £40,248 million at 30 September 2024 was broadly stable compared to £40,431 million at 31 December 2023, with the profit for the period largely offset by interim dividends of £3.4 billion, pension revaluations and movements in the cash flow hedging reserve.

    FINANCIAL REVIEW (continued)

    Capital

    The Group’s common equity tier 1 (CET1) capital ratio reduced to 13.6 per cent at 30 September 2024 (31 December 2023: 14.4 per cent). This largely reflected profit for the period, offset by the payment of interim ordinary dividends, the accrual for foreseeable ordinary dividends and an increase in risk-weighted assets.

    The Group’s total capital ratio reduced to 19.8 per cent (31 December 2023: 20.5 per cent). The issuance of AT1 and Tier 2 capital instruments was more than offset by the reduction in CET1 capital, the reduction in eligible provisions recognised through Tier 2 capital, the impact of regulatory amortisation and foreign exchange on Tier 2 capital instruments and the increase in risk-weighted assets.

    Risk-weighted assets have increased by £2,350 million to £184,910 million at 30 September 2024 (31 December 2023: £182,560 million). This reflects the impact of Retail lending growth, Retail secured CRD IV model updates and other movements, partly offset by optimisation including capital efficient securitisation activity.

    The Group’s UK leverage ratio reduced to 5.3 per cent (31 December 2023: 5.6 per cent). This reflected both the reduction in the total tier 1 capital position and an increase in the leverage exposure measure, principally related to the increase in securities financing transactions and other balance sheet movements.

     
    CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)
     
      Nine
    months ended
    30 Sep
    2024
    £m
        Nine
    months ended
    30 Sep
    2023
    £m
     
           
    Net interest income 9,378     10,432  
    Other income 3,235     3,268  
    Total income 12,613     13,700  
    Operating expenses (8,392 )   (7,457 )
    Impairment (294 )   (881 )
    Profit before tax 3,927     5,362  
    Tax expense (1,200 )   (1,387 )
    Profit for the period 2,727     3,975  
           
    Profit attributable to ordinary shareholders 2,454     3,708  
    Profit attributable to other equity holders 256     249  
    Profit attributable to equity holders 2,710     3,957  
    Profit attributable to non-controlling interests 17     18  
    Profit for the period 2,727     3,975  
     
    CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
     
      At 30 Sep
    2024

    £m
        At 31 Dec
    2023
    £m
     
               
    Assets          
    Cash and balances at central banks 39,925     57,909  
    Financial assets at fair value through profit or loss 1,990     1,862  
    Derivative financial instruments 2,926     3,165  
    Loans and advances to banks 5,891     8,810  
    Loans and advances to customers 440,479     433,124  
    Reverse repurchase agreements 43,879     32,751  
    Debt securities 12,569     12,546  
    Due from fellow Lloyds Banking Group undertakings 659     840  
    Financial assets at amortised cost 503,477     488,071  
    Financial assets at fair value through other comprehensive income 32,369     27,337  
    Other assets 28,925     27,061  
    Total assets 609,612     605,405  
               
    Liabilities          
    Deposits from banks 3,474     3,557  
    Customer deposits 446,311     441,953  
    Repurchase agreements 41,370     37,702  
    Due to fellow Lloyds Banking Group undertakings 4,442     2,932  
    Financial liabilities at fair value through profit or loss 4,964     5,255  
    Derivative financial instruments 3,583     4,307  
    Debt securities in issue at amortised cost 45,080     52,449  
    Other liabilities 12,926     9,884  
    Subordinated liabilities 7,214     6,935  
    Total liabilities 569,364     564,974  
               
    Equity          
    Share capital 1,574     1,574  
    Share premium account 600     600  
    Other reserves 2,904     2,395  
    Retained profits 29,667     30,786  
    Ordinary shareholders’ equity 34,745     35,355  
    Other equity instruments 5,428     5,018  
    Non-controlling interests 75     58  
    Total equity 40,248     40,431  
    Total equity and liabilities 609,612     605,405  
    ADDITIONAL FINANCIAL INFORMATION
     

    1.  Basis of presentation

    This release covers the results of Lloyds Bank plc together with its subsidiaries (the Group) for the nine months ended 30 September 2024.

    Accounting policies

    The accounting policies are consistent with those applied by the Group in its 2023 Annual Report and Accounts

    2.  Capital

    The Group’s Q3 2024 Interim Pillar 3 Disclosures can be found at http://www.lloydsbankinggroup.com/investors/financial-downloads.html.

    3.  UK economic assumptions

    Base case and MES economic assumptions

    The Group’s base case scenario is for a slow expansion in GDP and a modest rise in the unemployment rate alongside small gains in residential and commercial property prices. Following a reduction in inflationary pressures, cuts in UK Bank Rate are expected to continue during 2024 and 2025. Risks around this base case economic view lie in both directions and are largely captured by the generation of alternative economic scenarios.

    The Group has taken into account the latest available information at the reporting date in defining its base case scenario and generating alternative economic scenarios. The scenarios include forecasts for key variables as of the third quarter of 2024. Actuals for this period, or restatements of past data, may have since emerged prior to publication and have not been included, including specifically in the Quarterly National Accounts release of 30 September 2024. The Group’s approach to generating alternative economic scenarios is set out in detail in note 19 to the financial statements for the year ended 31 December 2023. For September 2024, the Group continues to judge it appropriate to include a non-modelled severe downside scenario for ECL calculations as explained in note 12 of the Group’s 2024 Half-Year news release.

    UK economic assumptions – base case scenario by quarter

    Key quarterly assumptions made by the Group in the base case scenario are shown below. Gross domestic product is presented quarter-on-quarter. House price growth, commercial real estate price growth and CPI inflation are presented year-on-year, i.e. from the equivalent quarter in the previous year. Unemployment rate and UK Bank Rate are presented as at the end of each quarter.

    At 30 September 2024 First
    quarter
    2024
    %
      Second
    quarter
    2024
    %
      Third
    quarter
    2024
    %
      Fourth
    quarter
    2024
    %
    First
    quarter
    2025
    %
    Second
    quarter
    2025
    %
    Third
    quarter
    2025
    %
    Fourth
    quarter
    2025
    %
                     
    Gross domestic product 0.7   0.6   0.3   0.3 0.3 0.3 0.4 0.4
    Unemployment rate 4.3   4.2   4.3   4.5 4.6 4.7 4.8 4.8
    House price growth 0.4   1.8   5.3   3.1 3.2 3.6 2.4 2.0
    Commercial real estate price growth (5.3 ) (4.7 ) (2.5 ) 0.3 1.4 1.9 1.6 1.7
    UK Bank Rate 5.25   5.25   5.00   4.75 4.50 4.25 4.00 4.00
    CPI inflation 3.5   2.1   2.1   2.7 2.4 2.9 2.7 2.3
                           

    ADDITIONAL FINANCIAL INFORMATION (continued)

    3.  UK economic assumptions (continued)

    UK economic assumptions – scenarios by year

    Key annual assumptions made by the Group are shown below. Gross domestic product and CPI inflation are presented as an annual change, house price growth and commercial real estate price growth are presented as the growth in the respective indices within the period. Unemployment rate and UK Bank Rate are averages for the period.

    At 30 September 2024 2024
    %
      2025
    %
      2026
    %
      2027
    %
      2028
    %
      2024-2028
    average
    %
                 
    Upside            
    Gross domestic product 1.2   2.4   1.9   1.5   1.4   1.7  
    Unemployment rate 4.2   3.3   2.8   2.7   2.8   3.1  
    House price growth 3.5   4.6   7.1   6.4   5.1   5.3  
    Commercial real estate price growth 1.6   9.0   4.2   1.8   0.7   3.4  
    UK Bank Rate 5.06   5.08   5.16   5.34   5.58   5.24  
    CPI inflation 2.6   2.7   2.4   2.8   2.8   2.7  
                 
    Base case            
    Gross domestic product 1.1   1.3   1.5   1.5   1.5   1.4  
    Unemployment rate 4.3   4.7   4.7   4.5   4.5   4.5  
    House price growth 3.1   2.0   1.0   1.5   2.1   2.0  
    Commercial real estate price growth 0.3   1.7   2.1   0.7   0.3   1.0  
    UK Bank Rate 5.06   4.19   3.63   3.50   3.50   3.98  
    CPI inflation 2.6   2.6   2.1   2.2   2.1   2.3  
                 
    Downside            
    Gross domestic product 1.0   (0.3 ) 0.4   1.3   1.5   0.8  
    Unemployment rate 4.4   6.5   7.3   7.3   7.1   6.5  
    House price growth 2.9   (0.2 ) (6.1 ) (5.8 ) (2.9 ) (2.5 )
    Commercial real estate price growth (0.7 ) (6.2 ) (1.7 ) (1.9 ) (1.9 ) (2.5 )
    UK Bank Rate 5.06   3.11   1.48   0.96   0.65   2.25  
    CPI inflation 2.6   2.6   1.9   1.5   1.1   2.0  
                 
    Severe downside            
    Gross domestic product 0.9   (2.0 ) (0.1 ) 1.1   1.4   0.2  
    Unemployment rate 4.6   8.6   9.9   9.9   9.7   8.5  
    House price growth 2.3   (2.5 ) (13.5 ) (12.6 ) (8.3 ) (7.1 )
    Commercial real estate price growth (2.7 ) (16.5 ) (6.5 ) (6.5 ) (5.1 ) (7.6 )
    UK Bank Rate – modelled 5.06   1.83   0.23   0.06   0.02   1.44  
    UK Bank Rate – adjusted1 5.13   3.67   2.55   2.16   1.88   3.08  
    CPI inflation – modelled 2.6   2.6   1.5   0.7   0.1   1.5  
    CPI inflation – adjusted1 2.6   3.5   1.8   1.3   0.9   2.0  
                 
    Probability-weighted            
    Gross domestic product 1.1   0.8   1.1   1.4   1.4   1.2  
    Unemployment rate 4.3   5.2   5.4   5.3   5.3   5.1  
    House price growth 3.1   1.7   (0.7 ) (0.6 ) 0.5   0.8  
    Commercial real estate price growth 0.1   (0.3 ) 0.7   (0.5 ) (0.8 ) (0.1 )
    UK Bank Rate – modelled 5.06   3.90   3.10   2.95   2.92   3.59  
    UK Bank Rate – adjusted1 5.07   4.08   3.33   3.15   3.11   3.75  
    CPI inflation – modelled 2.6   2.6   2.0   2.0   1.8   2.2  
    CPI inflation – adjusted1 2.6   2.7   2.1   2.1   1.9   2.3  
                             

    1 The adjustment to UK Bank Rate and CPI inflation in the severe downside is considered to better reflect the risks to the Group’s base case view in an economic environment where the risks of supply and demand shocks are seen as more balanced.

    ADDITIONAL FINANCIAL INFORMATION (continued)

    4.  Loans and advances to customers and expected credit loss allowance

    At 30 September 2024 Stage 1
    £m
        Stage 2
    £m
        Stage 3
    £m
        POCI
    £m
        Total
    £m
        Stage 2
    as % of
    total
      Stage 3
    as % of
    total
                               
    Loans and advances to customers
                               
    UK mortgages 271,138     28,389     4,545     6,949     311,021     9.1   1.5
    Credit cards 13,429     2,620     262         16,311     16.1   1.6
    Loans and overdrafts 8,839     1,374     173         10,386     13.2   1.7
    UK Motor Finance 14,390     2,314     119         16,823     13.8   0.7
    Other 16,702     513     150         17,365     3.0   0.9
    Retail 324,498     35,210     5,249     6,949     371,906     9.5   1.4
    Small and Medium Businesses 26,393     3,430     1,303         31,126     11.0   4.2
    Corporate and Institutional Banking 37,564     2,306     637         40,507     5.7   1.6
    Commercial Banking 63,957     5,736     1,940         71,633     8.0   2.7
    Other1 260                 260      
    Total gross lending 388,715     40,946     7,189     6,949     443,799     9.2   1.6
    ECL allowance on drawn balances (764 )   (1,228 )   (1,106 )   (222 )   (3,320 )        
    Net balance sheet carrying value 387,951     39,718     6,083     6,727     440,479          
                               
    Customer related ECL allowance (drawn and undrawn)
                               
    UK mortgages 86     321     339     222     968          
    Credit cards 207     351     129         687          
    Loans and overdrafts 170     242     111         523          
    UK Motor Finance2 169     105     68         342          
    Other 15     18     42         75          
    Retail 647     1,037     689     222     2,595          
    Small and Medium Businesses 138     190     160         488          
    Corporate and Institutional Banking 126     125     259         510          
    Commercial Banking 264     315     419         998          
    Other                          
    Total 911     1,352     1,108     222     3,593          
                               
    Customer related ECL allowance (drawn and undrawn) as a percentage of loans and advances to customers
                               
    UK mortgages     1.1     7.5     3.2     0.3          
    Credit cards 1.5     13.4     49.2         4.2          
    Loans and overdrafts 1.9     17.6     64.2         5.0          
    UK Motor Finance 1.2     4.5     57.1         2.0          
    Other 0.1     3.5     28.0         0.4          
    Retail 0.2     2.9     13.1     3.2     0.7          
    Small and Medium Businesses 0.5     5.5     12.3         1.6          
    Corporate and Institutional Banking 0.3     5.4     40.7         1.3          
    Commercial Banking 0.4     5.5     21.6         1.4          
    Other                          
    Total 0.2     3.3     15.4     3.2     0.8          
                                         

    1 Contains central fair value hedge accounting adjustments.

    2 UK Motor Finance includes £170 million relating to provisions against residual values of vehicles subject to finance leases.

    FORWARD-LOOKING STATEMENTS

    This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and section 27A of the US Securities Act of 1933, as amended, with respect to the business, strategy, plans and/or results of Lloyds Bank plc together with its subsidiaries (the Lloyds Bank Group) and its current goals and expectations. Statements that are not historical or current facts, including statements about the Lloyds Bank Group’s or its directors’ and/or management’s beliefs and expectations, are forward-looking statements. Words such as, without limitation, ‘believes’, ‘achieves’, ‘anticipates’, ‘estimates’, ‘expects’, ‘targets’, ‘should’, ‘intends’, ‘aims’, ‘projects’, ‘plans’, ‘potential’, ‘will’, ‘would’, ‘could’, ‘considered’, ‘likely’, ‘may’, ‘seek’, ‘estimate’, ‘probability’, ‘goal’, ‘objective’, ‘deliver’, ‘endeavour’, ‘prospects’, ‘optimistic’ and similar expressions or variations on these expressions are intended to identify forward-looking statements. These statements concern or may affect future matters, including but not limited to: projections or expectations of the Lloyds Bank Group’s future financial position, including profit attributable to shareholders, provisions, economic profit, dividends, capital structure, portfolios, net interest margin, capital ratios, liquidity, risk-weighted assets (RWAs), expenditures or any other financial items or ratios; litigation, regulatory and governmental investigations; the Lloyds Bank Group’s future financial performance; the level and extent of future impairments and write-downs; the Lloyds Bank Group’s ESG targets and/or commitments; statements of plans, objectives or goals of the Lloyds Bank Group or its management and other statements that are not historical fact and statements of assumptions underlying such statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend upon circumstances that will or may occur in the future. Factors that could cause actual business, strategy, targets, plans and/or results (including but not limited to the payment of dividends) to differ materially from forward-looking statements include, but are not limited to: general economic and business conditions in the UK and internationally; acts of hostility or terrorism and responses to those acts, or other such events; geopolitical unpredictability; the war between Russia and Ukraine; the conflicts in the Middle East; the tensions between China and Taiwan; political instability including as a result of any UK general election; market related risks, trends and developments; changes in client and consumer behaviour and demand; exposure to counterparty risk; the ability to access sufficient sources of capital, liquidity and funding when required; changes to the Lloyds Bank Group’s or Lloyds Banking Group plc’s credit ratings; fluctuations in interest rates, inflation, exchange rates, stock markets and currencies; volatility in credit markets; volatility in the price of the Lloyds Bank Group’s securities; tightening of monetary policy in jurisdictions in which the Lloyds Bank Group operates; natural pandemic and other disasters; risks concerning borrower and counterparty credit quality; risks affecting defined benefit pension schemes; changes in laws, regulations, practices and accounting standards or taxation; changes to regulatory capital or liquidity requirements and similar contingencies; the policies and actions of governmental or regulatory authorities or courts together with any resulting impact on the future structure of the Lloyds Bank Group; risks associated with the Lloyds Bank Group’s compliance with a wide range of laws and regulations; assessment related to resolution planning requirements; risks related to regulatory actions which may be taken in the event of a bank or Lloyds Bank Group or Lloyds Banking Group failure; exposure to legal, regulatory or competition proceedings, investigations or complaints; failure to comply with anti-money laundering, counter terrorist financing, anti-bribery and sanctions regulations; failure to prevent or detect any illegal or improper activities; operational risks including risks as a result of the failure of third party suppliers; conduct risk; technological changes and risks to the security of IT and operational infrastructure, systems, data and information resulting from increased threat of cyber and other attacks; technological failure; inadequate or failed internal or external processes or systems; risks relating to ESG matters, such as climate change (and achieving climate change ambitions) and decarbonisation, including the Lloyds Bank Group’s or the Lloyds Banking Group’s ability along with the government and other stakeholders to measure, manage and mitigate the impacts of climate change effectively, and human rights issues; the impact of competitive conditions; failure to attract, retain and develop high calibre talent; the ability to achieve strategic objectives; the ability to derive cost savings and other benefits including, but without limitation, as a result of any acquisitions, disposals and other strategic transactions; inability to capture accurately the expected value from acquisitions; and assumptions and estimates that form the basis of the Lloyds Bank Group’s financial statements. A number of these influences and factors are beyond the Lloyds Bank Group’s control. Please refer to the latest Annual Report on Form 20-F filed by Lloyds Bank plc with the US Securities and Exchange Commission (the SEC), which is available on the SEC’s website at http://www.sec.gov, for a discussion of certain factors and risks. Lloyds Bank plc may also make or disclose written and/or oral forward-looking statements in other written materials and in oral statements made by the directors, officers or employees of Lloyds Bank plc to third parties, including financial analysts. Except as required by any applicable law or regulation, the forward-looking statements contained in this document are made as of today’s date, and the Lloyds Bank Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this document whether as a result of new information, future events or otherwise. The information, statements and opinions contained in this document do not constitute a public offer under any applicable law or an offer to sell any securities or financial instruments or any advice or recommendation with respect to such securities or financial instruments.

    CONTACTS

    For further information please contact:

    INVESTORS AND ANALYSTS

    Douglas Radcliffe
    Group Investor Relations Director
    020 7356 1571
    douglas.radcliffe@lloydsbanking.com

    Nora Thoden
    Director of Investor Relations – ESG
    020 7356 2334
    nora.thoden@lloydsbanking.com

    Tom Grantham
    Investor Relations Senior Manager
    07851 440 091
    thomas.grantham@lloydsbanking.com

    Sarah Robson
    Investor Relations Senior Manager
    07494 513 983
    sarah.robson2@lloydsbanking.com

    CORPORATE AFFAIRS

    Grant Ringshaw
    External Relations Director
    020 7356 2362
    grant.ringshaw@lloydsbanking.com

    Matt Smith
    Head of Media Relations
    07788 352 487
    matt.smith@lloydsbanking.com

    Copies of this News Release may be obtained from:
    Investor Relations, Lloyds Banking Group plc, 25 Gresham Street, London EC2V 7HN
    The statement can also be found on the Group’s website – http://www.lloydsbankinggroup.com

    Registered office: Lloyds Bank plc, 25 Gresham Street, London EC2V 7HN
    Registered in England No. 2065

    This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit http://www.rns.com.

    The MIL Network

  • MIL-OSI United Kingdom: Crime news: procurement process for 2025 Standard Crime Contract

    Source: United Kingdom – Executive Government & Departments

    The second stage of the procurement process opens for delivery of criminal legal aid services from Wednesday 1 October 2025.

    Stage 2 of the crime procurement process is now open. It closes on 30 April 2025. Tenders submitted in this stage will have contracts commence on 1 October 2025 and will be able to join the duty rotas from January 2026.

    If you have submitted a bid in Stage 1 you should not tender Stage 2. Anyone who tendered in Stage 1 will be notified of the outcome in mid-December 2024.

    Tenders received after Thursday 1 May 2025 will be opened on the 1st working day of each month following their submission commencing from 1 July 2025 and, where successful, the contract will commence no later than three months after processing began.

    How do I tender?

    Tenders must be submitted using the LAA’s eTendering system.

    For full details of the procurement process please read the Application Guide which is available at Crime Contract 2025 Tender – GOV.UK (www.gov.uk)

    Updates to this page

    Published 23 October 2024

    MIL OSI United Kingdom

  • MIL-OSI Europe: Nordic statement on the draft legal bills in the Knesset related to UNRWA

    Source: Government of Sweden

    The Nordic countries are deeply concerned by the recent introduction of draft legal bills in the Knesset that, if adopted, would prevent the UNRWA from continuing its operations in the West Bank, including East Jerusalem, and Gaza. Effectively, UNRWA would no longer be able to exercise its core tasks as stipulated by UN General Assembly Resolution 302 (IV) of 8 December 1949, that is “to carry out […] direct relief and works programmes” for the millions of Palestine refugees living in these areas. It is from this and subsequent UN resolutions that UNRWA’s mandate is derived, and as its parent organ, it is only the General Assembly that can define the UNRWA mandate.

    UNRWA is at present the most centrally placed humanitarian organisation responding to the needs of Palestine refugees in the Middle East. UNRWA provides education for more than half a million children and adolescents, health services covering millions of patient visits annually and social safety net support for the most vulnerable refugees along with an emergency response programme. In the midst of an ongoing catastrophic humanitarian situation in Gaza, a halt to any of the organisation’s activities would have devastating consequences for the hundreds of thousands of civilians served by UNRWA. The consequential vacuum in services and humanitarian aid for Palestine refugees in Gaza, and the West Bank, including East Jerusalem, may well further destabilise the situation in these areas, in Israel and in the region as a whole, and may fundamentally jeopardize the prospects for a two-state solution. 

    Following serious allegations directed towards some workers of the Agency, we welcome the prompt follow-up action initiated by the United Nations Secretary-General and the UNRWA Commissioner General, and we expect its continued implementation. 

    Considering the above, the proposed draft legal bills that restrict UNRWA’s continued operations may entail the violation of Israel’s obligations under international law, including international humanitarian law, and the legally binding provisional measures ordered by the International Court of Justice.

    The Nordic countries reaffirm their unwavering commitment to the United Nations and international law, including international humanitarian law. The latter requires all parties to conflicts to ensure that affected populations receive the necessary humanitarian aid to live under adequate material conditions, as well as to ensure the safety of humanitarian workers. It is on this basis that the Nordic countries call for the proposed legal bills to be reconsidered and strongly urge Israel to ensure continued and unhindered humanitarian access for UNRWA to the Palestine refugees that it was set up to serve.

    Lars Løkke Rasmussen, Minister for Foreign Affairs of Denmark 
    Elina Valtonen, Minister for Foreign Affairs of Finland
    Thórdís Kolbrún Reykfjörd Gylfadóttir, Minister for Foreign Affairs of Iceland
    Espen Barth Eide, Minister for Foreign Affairs of Norway
    Maria Malmer Stenergard, Minister for Foreign Affairs of Sweden

    MIL OSI Europe News

  • MIL-OSI Europe: VATICAN/GENERAL AUDIENCE – Pope Francis: marriage needs the support of the Holy Spirit

    Source: Agenzia Fides – MIL OSI

    Wednesday, 23 October 2024

    Vatican Media

    Vatican City (Agenzia Fides) – “Never place a finger, never intervene, between husband and wife, says an Italian proverb. Yet, there is in fact a ‘finger’ to be placed between husband and wife, the ‘finger of God’: the Holy Spirit!”, said Pope Francis this morning, despite the heavy autumn rain, when he returned to St. Peter’s Square for the traditional Wednesday general Audience.The Pope thus continued the cycle of catechisms on the Holy Spirit and today he discussed the action of the third person of the Trinity in the sacrament of marriage.Pope Francis quotes the Fathers of the Church in this regard, in particular Saint Augustine, whose reflections start from the revelation that “God is love”, as we read in the New Testament. Love, said the Pope, presupposes “someone who loves; someone who is loved – and love itself that unites the two. In the Trinity, the Father is, the one who loves, the source and the beginning of everything; the Son is the one who is loved, and the Holy Spirit is the love that unites them”. “The God of Christians is therefore a ‘unique’ but not a solitary God; he is a unity of communion and love.”“What does the Holy Spirit have to do with marriage?” asks Pope Francis. “Very much, perhaps the essential thing, and I will now try to explain why! Christian marriage is the sacrament of the mutual gift of man and woman. This is how it was intended by the Creator. The human couple is therefore the first and most fundamental realization of the communion of love that is the Trinity”. The spouses too, the Pope stresses, “should form a first person plural, a ‘we’; they should face each other as ‘I’ and ‘you’ and appear to the rest of the world, including their children, as ‘we’. How much children need this unity of parents! How much the children of parents who separate suffer, how much they suffer!””However, in order to respond to this vocation,” Pope Francis continued, “marriage needs the support of the One who is the gift, or rather the gift par excellence.””Where the Holy Spirit enters, the capacity to give oneself is reborn.” “No one claims that such a union is an easy goal to achieve, least of all in today’s world. But this is the truth of things as the Creator intended them, and therefore lies in their nature,” the Pope said. “This is not a pious illusion: it is what the Holy Spirit has done in so many marriages – namely when spouses have decided to invoke him.” “It would therefore not be bad not only to give future married couples legal, psychological and moral information, but also to deepen the “spiritual” preparation of the engaged couple for marriage,” the Pope concluded.After the catechesis, Pope Francis addressed those present with two appeals. The first is addressed to all the faithful: “The month of October invites us to renew our active collaboration in the mission of the Church. Be missionaries of the Gospel everywhere, offering the spiritual support of prayer and your concrete help to those who strive to bring it to those who do not yet know it”.The second is for peace: “Let us pray for peace. Today I received the latest statistics on the victims of the war in Ukraine: It is terrible! War is irreconcilable; war is a defeat from the start.” And “Let us not forget Myanmar, let us not forget Palestine, which suffers inhuman attacks, let us not forget Israel and let us not forget all the nations at war. One number should frighten us: the most profitable investments today are the weapons factories. They make money from death. Let us pray for peace,” is the Pope’s appeal. (F.B.) (Agenzia Fides, 23/10/2024)
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  • MIL-OSI Europe: AMERICA/ECUADOR – Appointment of vicar apostolic of Napo

    Source: Agenzia Fides – MIL OSI

    Wednesday, 23 October 2024

    Vatican City (Agenzia Fides) – The Holy Father has appointed Bishop Celmo Lazzari, C.S.I., until now vicar apostolic of San Miguel de Sucumbíos, as vicar apostolic of the apostolic vicariate of Napo, Ecuador.Bishop Celmo Lazzari, C.S.I., was born on 16 June 1956 in Garibaldi, in the diocese of Caxias do Sul. He carried out his studies in philosophy and theology in Londrina, Brazil.He gave his perpetual vows on 9 January 1982, and was ordained a priest on 18 December 1982.He has held the following offices: director of the religious community of Ana Rech and rector of the minor seminary of the Josephites, Caxias do Sul (1982-1987), master of Josephite Philosophers, Caxias do Sul (1988-1989), master of Josephite Theologians, Porto Alegre (1990-1994), vicar (1992-1994) and provincial superior (1994-2000) of the Josephite Fathers in Brazil, counsellor general of the Congregation and head of the Josephite Missions, Rome (2000-2006), vicar general of the Congregation, Rome (2006-2010), vicar apostolic of Napo (2010-2013), and since 2013, vicar apostolic of San Miguel de Sucumbíos. (E.G.) (Agenzia Fides, 23/10/2024)
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    MIL OSI Europe News

  • MIL-OSI Europe: AMERICA/ECUADOR – Appointment of vicar apostolic of San Miguel de Sucumbíos

    Source: Agenzia Fides – MIL OSI

    Wednesday, 23 October 2024

    Vatican City (Agenzia Fides) – The Holy Father has appointed the Reverend Moacir Goulart de Figueredo, M.S.C., until now superior of the order of the Missionaries of the Sacred Heart in the province of Curitiba, as vicar apostolic of San Miguel de Sucumbíos, Ecuador.Msgr. Moacir Goulart de Figueredo, M.S.C., was born on 30 September 1965 in Salto do Lontra, PR, in Brazil. He carried out his studies in philosophy at the Universidade São Franciscodi São Paulo and in theology at the Nossa Senhora da Assuncão University, where he was awarded a licentiate in missiology.He gave his perpetual vows on 2 February 1990 and was ordained a priest on 16 November 1991.He has held the following offices: formator and provincial vicar in São Paulo (1990-1996), missionary in Ecuador and parish vicar in Chunchi, province of Chimborazo and diocese of Riobamba (1996-2001), provincial superior in Curitiba, PR, Brazil, and parish vicar (2001-2007), formator in Ecuador and parish vicar in Quito (2007-2016), assessor of the Ecuadorian Conference of Religious (2007-2016), formator of candidates of the Missionaries of the Sacred Heart of Jesus (2007-2016), archdiocesan director of the Pontifical Mission Societies (2010-2015), executive secretary of the Centro Misionero Nacional of the Ecuadorian Episcopal Conference (2015-2018), and parish priest of the Good Shepherd in Turubamba in Quito (2016-2022). Since 2022 he has served as provincial superior in Curitiba, PR, Brazil. (E.G.) (Agenzia Fides, 23/10/2024)
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  • MIL-OSI: United Community Banks, Inc. Reports Third Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    GREENVILLE, S.C. , Oct. 23, 2024 (GLOBE NEWSWIRE) — United Community Banks, Inc. (NYSE: UCB) (United) today announced net income for the 2024 third quarter of $47.3 million and pre-tax, pre-provision income of $74.2 million. The result included the previously announced strategic decision to sell $318 million in manufactured housing loans, which negatively impacted the quarter by $21.4 million after-tax, or $0.18 per share. Diluted earnings per share of $0.38 for the quarter represented a decrease of $0.01, or 3%, from the third quarter a year ago and a decrease of $0.16, or 30%, from the second quarter of 2024.

    On an operating basis, United’s diluted earnings per share of $0.57 was up 27% from the year-ago quarter. The primary drivers of the increased earnings per share year-over-year were higher net interest income and a lower provision for credit losses. The $0.57 result includes a $9.9 million Hurricane Helene related loan loss provision to increase the reserve on $383 million of loans in nine North Carolina counties impacted by the hurricane to 3.5% of loans.

    United’s return on assets was 0.67%, or 1.01% on an operating basis. Return on common equity was 5.20% and return on tangible common equity on an operating basis was 11.17%. On a pre-tax, pre-provision basis, operating return on assets was 1.50% for the quarter. At quarter-end, tangible common equity to tangible assets was 8.93%, up 15 basis points from the second quarter of 2024.

    Chairman and CEO Lynn Harton stated, “We continue to focus on growth and the third quarter saw the return of modest loan and strong deposit growth. Excluding the sale of our manufactured housing portfolio, announced in early September, loan balances were up 1.5% annualized. Customer deposits, which exclude brokered deposits, were up $262 million, or 5% annualized. Our balance sheet remains highly liquid and our internal capital generation rate is running well in excess of our current capital needs. We maintained robust capital ratios with our preliminary CET1 moving to 13.1% and we opportunistically redeemed $8 million of relatively expensive Trust Preferred securities. The increase in liquidity and capital place us in a great position to take advantage of growth opportunities as we move into 2025.”

    Mr. Harton continued, “We elected to sell our manufactured housing loan book, a business that was part of our Reliant Bancorp, Inc. acquisition in January of 2022, as a natural conclusion of our exit from the business, as we ceased originating loans in the third quarter of 2023. The transaction reduces our risk profile and allows us to allocate capital to other growth opportunities.”

    United’s net interest margin decreased four basis points to 3.33% from the second quarter. The average yield on United’s interest-earning assets was down four basis points to 5.55%, while its cost of interest-bearing liabilities decreased two basis points, leading to the four-basis point reduction in net interest margin. Net charge-offs were $23.7 million, or 0.52% of average loans, during the quarter, up 26 basis points compared to the second quarter of 2024 due to transaction-related losses resulting from the sale of our manufactured housing portfolio. NPAs were 42 basis points relative to total assets, down one basis point from the second quarter.

    Mr. Harton concluded, “We are pleased with our operating performance this quarter, but we were also reminded this quarter of the importance of community. Many of our employees, customers, and communities have been impacted by the recent hurricanes. We are actively involved in the recovery process through volunteer hours and financial support and will be ready to lead the rebuilding process, when and as needed. Many thanks to our employees throughout the company that have responded, in sometimes heroic ways, to support each other and our customers.”

    Third Quarter 2024 Financial Highlights:

    • Net income of $47.3 million and pre-tax, pre-provision income of $74.2 million
    • EPS down 3% compared to third quarter 2023 on a GAAP basis and up 27% on an operating basis; compared to second quarter 2024, EPS down 30% on a GAAP basis and down 2% on an operating basis
    • The GAAP results were impacted by the decision to sell the manufactured housing loan book at a $21.4 million after-tax loss, or $0.18, approximately one year after making the strategic decision to cease originations
    • Return on assets of 0.67%, or 1.01% on an operating basis
    • Pre-tax, pre-provision return on assets of 1.50% on an operating basis
    • Return on common equity of 5.20%
    • Return on tangible common equity of 11.17% on an operating basis
    • A provision for credit losses of $14.4 million, which includes $9.9 million to establish a special reserve for expected credit losses from Hurricane Helene
    • Net charge-offs of $23.7 million, or 52 basis points as a percent of average loans, which included $11.0 million, or 24 basis points, of transaction-related losses from the sale of our manufactured housing portfolio
    • Nonperforming assets of 0.42% of total assets, down one basis point compared to June 30, 2024
    • Loan production of $1.2 billion
    • Customer deposits were up $262 million from the second quarter, with most of the growth in NOW and money market deposits
    • Net interest margin of 3.33% decreased by four basis points from the second quarter mostly due to lower purchased loan accretion, the sale of our manufactured housing portfolio, and changing composition of our earning assets and interest-bearing liabilities
    • Mortgage closings of $239 million compared to $211 million a year ago; mortgage rate locks of $306 million compared to $304 million a year ago
    • Noninterest income was down $28.5 million on a linked quarter basis with $27.2 million due to losses from the sale of manufactured housing loans. The remaining decrease was primarily driven by the mark on our mortgage servicing rights asset.
    • Noninterest expenses decreased by $4.0 million compared to the second quarter on a GAAP basis and were up $0.3 million on an operating basis
    • Efficiency ratio of 65.5%, or 57.4% on an operating basis
    • Maintained robust capital ratios with preliminary CET1 increasing to 13.1% and opportunistically redeemed $8 million of relatively expensive Trust Preferred securities
    • Quarterly common dividend of $0.24 per share declared during the quarter, up 4% year-over-year

    Conference Call
    United will hold a conference call on Wednesday, October 23, 2024 at 11 a.m. ET to discuss the contents of this press release and to share business highlights for the quarter. Participants can pre-register for the conference call by navigating to https://dpregister.com/sreg/10193157/fd9f74293a. Those without internet access or unable to pre-register may dial in by calling 1-866-777-2509. Participants are encouraged to dial in 15 minutes prior to the call start time. The conference call also will be webcast and can be accessed by selecting “Events and Presentations” under “News and Events” within the Investor Relations section of the company’s website, http://www.ucbi.com.

    UNITED COMMUNITY BANKS, INC.
    Selected Financial Information
    (In thousands, except per share data)
      2024   2023     Third
    Quarter
    2024-
    2023
    Change
        For the Nine Months
    Ended September 30,
         YTD
    2024-
    2023
    Change
     
        Third
    Quarter
          Second
    Quarter
          First
    Quarter
          Fourth
    Quarter
          Third
    Quarter
            2024       2023    
    INCOME SUMMARY                                                        
    Interest revenue $ 349,086     $ 346,965     $ 336,728     $ 338,698     $ 323,147             $ 1,032,779     $ 898,409          
    Interest expense 139,900     138,265     137,579     135,245     120,591             415,744     284,097          
    Net interest revenue 209,186     208,700     199,149     203,453     202,556       3 %   617,035     614,312       %
    Provision for credit losses 14,428     12,235     12,899     14,626     30,268             39,562     74,804          
    Noninterest income 8,091     36,556     39,587     (23,090 )   31,977       (75 )   84,234     98,573       (15 )
    Total revenue 202,849     233,021     225,837     165,737     204,265       (1 )   661,707     638,081       4  
    Noninterest expenses 143,065     147,044     145,002     154,587     144,474       (1 )   435,111     416,686       4  
    Income before income tax expense 59,784     85,977     80,835     11,150     59,791           226,596     221,395       2  
    Income tax expense 12,437     19,362     18,204     (2,940 )   11,925       4     50,003     47,941       4  
    Net income 47,347     66,615     62,631     14,090     47,866       (1 )   176,593     173,454       2  
    Non-operating items 29,385     6,493     2,187     67,450     9,168             38,065     21,444          
    Income tax benefit of non-operating items (6,276 )   (1,462 )   (493 )   (16,714 )   (2,000 )           (8,231 )   (4,775 )        
    Net income – operating(1) $ 70,456     $ 71,646     $ 64,325     $ 64,826     $ 55,034       28     $ 206,427     $ 190,123       9  
    Pre-tax pre-provision income(5) $ 74,212     $ 98,212     $ 93,734     $ 25,776     $ 90,059       (18 )   $ 266,158     $ 296,199       (10 )
    PERFORMANCE MEASURES                                                        
    Per common share:                                                        
    Diluted net income – GAAP $ 0.38     $ 0.54     $ 0.51     $ 0.11     $ 0.39       (3 )   $ 1.43     $ 1.44       (1 )
    Diluted net income – operating(1) 0.57     0.58     0.52     0.53     0.45       27     1.67     1.58       6  
    Cash dividends declared 0.24     0.23     0.23     0.23     0.23       4     0.70     0.69       1  
    Book value 27.68     27.18     26.83     26.52     25.87       7     27.68     25.87       7  
    Tangible book value(3) 19.66     19.13     18.71     18.39     17.70       11     19.66     17.70       11  
    Key performance ratios:                                                        
    Return on common equity – GAAP(2)(4) 5.20 %   7.53 %   7.14 %   1.44 %   5.32 %           6.61 %   6.69 %        
    Return on common equity – operating(1)(2)(4) 7.82     8.12     7.34     7.27     6.14             7.76     7.35          
    Return on tangible common equity – operating(1)(2)(3)(4) 11.17     11.68     10.68     10.58     9.03             11.18     10.65          
    Return on assets – GAAP(4) 0.67     0.97     0.90     0.18     0.68             0.85     0.86          
    Return on assets – operating(1)(4) 1.01     1.04     0.93     0.92     0.79             0.99     0.95          
    Return on assets – pre-tax pre-provision – operating(1)(4)(5) 1.50     1.54     1.40     1.33     1.44             1.48     1.60          
    Net interest margin (fully taxable equivalent)(4) 3.33     3.37     3.20     3.19     3.24             3.30     3.41          
    Efficiency ratio – GAAP 65.51     59.70     60.47     66.33     61.32             61.76     58.06          
    Efficiency ratio – operating(1) 57.37     57.06     59.15     59.57     57.43             57.84     55.07          
    Equity to total assets 12.45     12.35     12.06     11.95     11.85             12.45     11.85          
    Tangible common equity to tangible assets(3) 8.93     8.78     8.49     8.36     8.18             8.93     8.18          
    ASSET QUALITY                                                        
    Nonperforming assets (“NPAs”) $ 114,960     $ 116,722     $ 107,230     $ 92,877     $ 90,883       26     $ 114,960     $ 90,883       26  
    Allowance for credit losses – loans 205,290     213,022     210,934     208,071     201,557       2     205,290     201,557       2  
    Allowance for credit losses – total 215,517     224,740     224,119     224,128     219,624       (2 )   215,517     219,624       (2 )
    Net charge-offs 23,651     11,614     12,908     10,122     26,638             48,173     42,121          
    Allowance for credit losses – loans to loans 1.14 %   1.17 %   1.15 %   1.14 %   1.11 %           1.14 %   1.11 %        
    Allowance for credit losses – total to loans 1.20     1.23     1.22     1.22     1.21             1.20     1.21          
    Net charge-offs to average loans(4) 0.52     0.26     0.28     0.22     0.59             0.35     0.32          
    NPAs to total assets 0.42     0.43     0.39     0.34     0.34             0.42     0.34          
    AT PERIOD END ($ in millions)                                                        
    Loans $ 17,964     $ 18,211     $ 18,375     $ 18,319     $ 18,203       (1 )   $ 17,964     $ 18,203       (1 )
    Investment securities 6,425     6,038     5,859     5,822     5,701       13     6,425     5,701       13  
    Total assets 27,373     27,057     27,365     27,297     26,869       2     27,373     26,869       2  
    Deposits 23,253     22,982     23,332     23,311     22,858       2     23,253     22,858       2  
    Shareholders’ equity 3,407     3,343     3,300     3,262     3,184       7     3,407     3,184       7  
    Common shares outstanding (thousands) 119,283     119,175     119,137     119,010     118,976           119,283     118,976        

    (1) Excludes non-operating items as detailed on Non-GAAP Performance Measures Reconciliation on next page. (2) Net income less preferred stock dividends, divided by average realized common equity, which excludes accumulated other comprehensive income (loss). (3) Excludes effect of acquisition related intangibles and associated amortization. (4) Annualized. (5) Excludes income tax expense and provision for credit losses.

    UNITED COMMUNITY BANKS, INC.
    Non-GAAP Performance Measures Reconciliation
    (in thousands, except per share data)
      2024   2023   For the Nine Months Ended
    September 30,
        Third
    Quarter
          Second
    Quarter
          First
    Quarter
          Fourth
    Quarter
          Third
    Quarter
          2024       2023  
                                             
    Noninterest income reconciliation                                        
    Noninterest income (GAAP) $ 8,091     $ 36,556     $ 39,587     $ (23,090 )   $ 31,977     $ 84,234     $ 98,573  
    Loss on sale of manufactured housing loans 27,209                     27,209      
    Gain on lease termination         (2,400 )           (2,400 )    
    Bond portfolio restructuring loss             51,689              
    Noninterest income – operating $ 35,300     $ 36,556     $ 37,187     $ 28,599     $ 31,977     $ 109,043     $ 98,573  
                                             
    Noninterest expense reconciliation                                        
    Noninterest expenses (GAAP) $ 143,065     $ 147,044     $ 145,002     $ 154,587     $ 144,474     $ 435,111     $ 416,686  
    Loss on FinTrust (goodwill impairment)     (5,100 )               (5,100 )    
    FDIC special assessment     764     (2,500 )   (9,995 )       (1,736 )    
    Merger-related and other charges (2,176 )   (2,157 )   (2,087 )   (5,766 )   (9,168 )   (6,420 )   (21,444 )
    Noninterest expenses – operating $ 140,889     $ 140,551     $ 140,415     $ 138,826     $ 135,306     $ 421,855     $ 395,242  
                                             
    Net income to operating income reconciliation                                        
    Net income (GAAP) $ 47,347     $ 66,615     $ 62,631     $ 14,090     $ 47,866     $ 176,593     $ 173,454  
    Loss on sale of manufactured housing loans 27,209                     27,209      
    Bond portfolio restructuring loss             51,689              
    Gain on lease termination         (2,400 )           (2,400 )    
    Loss on FinTrust (goodwill impairment)     5,100                 5,100      
    FDIC special assessment     (764 )   2,500     9,995         1,736      
    Merger-related and other charges 2,176     2,157     2,087     5,766     9,168     6,420     21,444  
    Income tax benefit of non-operating items (6,276 )   (1,462 )   (493 )   (16,714 )   (2,000 )   (8,231 )   (4,775 )
    Net income – operating $ 70,456     $ 71,646     $ 64,325     $ 64,826     $ 55,034     $ 206,427     $ 190,123  
                                             
    Net income to pre-tax pre-provision income reconciliation                                        
    Net income (GAAP) $ 47,347     $ 66,615     $ 62,631     $ 14,090     $ 47,866     $ 176,593     $ 173,454  
    Income tax expense 12,437     19,362     18,204     (2,940 )   11,925     50,003     47,941  
    Provision for credit losses 14,428     12,235     12,899     14,626     30,268     39,562     74,804  
    Pre-tax pre-provision income $ 74,212     $ 98,212     $ 93,734     $ 25,776     $ 90,059     $ 266,158     $ 296,199  
                                             
    Diluted income per common share reconciliation                                        
    Diluted income per common share (GAAP) $ 0.38     $ 0.54     $ 0.51     $ 0.11     $ 0.39     $ 1.43     $ 1.44  
    Loss on sale of manufactured housing loans 0.18                     0.18      
    Bond portfolio restructuring loss             0.32              
    Gain on lease termination         (0.02 )           (0.02 )    
    Loss on FinTrust (goodwill impairment)     0.03                 0.03      
    FDIC special assessment         0.02     0.06         0.01      
    Merger-related and other charges 0.01     0.01     0.01     0.04     0.06     0.04     0.14  
    Diluted income per common share – operating $ 0.57     $ 0.58     $ 0.52     $ 0.53     $ 0.45     $ 1.67     $ 1.58  
                                             
    Book value per common share reconciliation                                        
    Book value per common share (GAAP) $ 27.68     $ 27.18     $ 26.83     $ 26.52     $ 25.87     $ 27.68     $ 25.87  
    Effect of goodwill and other intangibles (8.02 )   (8.05 )   (8.12 )   (8.13 )   (8.17 )   (8.02 )   (8.17 )
    Tangible book value per common share $ 19.66     $ 19.13     $ 18.71     $ 18.39     $ 17.70     $ 19.66     $ 17.70  
                                             
    Return on tangible common equity reconciliation                                        
    Return on common equity (GAAP) 5.20 %   7.53 %   7.14 %   1.44 %   5.32 %   6.61 %   6.69 %
    Loss on sale of manufactured housing loans 2.43                     0.82      
    Bond portfolio restructuring loss             4.47              
    Gain on lease termination         (0.22 )           (0.07 )    
    Loss on FinTrust (goodwill impairment)     0.46                 0.16      
    FDIC special assessment     (0.07 )   0.23     0.86         0.05      
    Merger-related and other charges 0.19     0.20     0.19     0.50     0.82     0.19     0.66  
    Return on common equity – operating 7.82     8.12     7.34     7.27     6.14     7.76     7.35  
    Effect of goodwill and other intangibles 3.35     3.56     3.34     3.31     2.89     3.42     3.30  
    Return on tangible common equity – operating 11.17 %   11.68 %   10.68 %   10.58 %   9.03 %   11.18 %   10.65 %
                                             
    Return on assets reconciliation                                        
    Return on assets (GAAP) 0.67 %   0.97 %   0.90 %   0.18 %   0.68 %   0.85 %   0.86 %
    Loss on sale of manufactured housing loans 0.31                     0.10      
    Bond portfolio restructuring loss             0.57              
    Gain on lease termination         (0.03 )           (0.01 )    
    Loss on FinTrust (goodwill impairment)     0.06                 0.02      
    FDIC special assessment     (0.01 )   0.03     0.11         0.01      
    Merger-related and other charges 0.03     0.02     0.03     0.06     0.11     0.02     0.09  
    Return on assets – operating 1.01 %   1.04 %   0.93 %   0.92 %   0.79 %   0.99 %   0.95 %
                                             
    Return on assets to return on assets- pre-tax pre-provision reconciliation                                        
    Return on assets (GAAP) 0.67 %   0.97 %   0.90 %   0.18 %   0.68 %   0.85 %   0.86 %
    Income tax (benefit) expense 0.19     0.29     0.27     (0.04 )   0.18     0.25     0.25  
    Provision for credit losses 0.21     0.18     0.19     0.21     0.45     0.19     0.38  
    Loss on sale of manufactured housing loans 0.40                     0.13      
    Bond portfolio restructuring loss             0.75              
    Gain on lease termination         (0.04 )           (0.01 )    
    Loss on FinTrust (goodwill impairment)     0.08                 0.03      
    FDIC special assessment     (0.01 )   0.04     0.15         0.01      
    Merger-related and other charges 0.03     0.03     0.04     0.08     0.13     0.03     0.11  
    Return on assets – pre-tax pre-provision – operating 1.50 %   1.54 %   1.40 %   1.33 %   1.44 %   1.48 %   1.60 %
                                             
    Efficiency ratio reconciliation                                        
    Efficiency ratio (GAAP) 65.51 %   59.70 %   60.47 %   66.33 %   61.32 %   61.76 %   58.06 %
    Loss on sale of manufactured housing loans (7.15 )                   (2.25 )    
    Gain on lease termination         0.60             0.21      
    Loss on FinTrust (goodwill impairment)     (2.07 )               (0.73 )    
    FDIC special assessment     0.31     (1.05 )   (4.29 )       (0.24 )    
    Merger-related and other charges (0.99 )   (0.88 )   (0.87 )   (2.47 )   (3.89 )   (0.91 )   (2.99 )
    Efficiency ratio – operating 57.37 %   57.06 %   59.15 %   59.57 %   57.43 %   57.84 %   55.07 %
                                             
    Tangible common equity to tangible assets reconciliation                                        
    Equity to total assets (GAAP) 12.45 %   12.35 %   12.06 %   11.95 %   11.85 %   12.45 %   11.85 %
    Effect of goodwill and other intangibles (3.20 )   (3.24 )   (3.25 )   (3.27 )   (3.33 )   (3.20 )   (3.33 )
    Effect of preferred equity (0.32 )   (0.33 )   (0.32 )   (0.32 )   (0.34 )   (0.32 )   (0.34 )
    Tangible common equity to tangible assets 8.93 %   8.78 %   8.49 %   8.36 %   8.18 %   8.93 %   8.18 %
    UNITED COMMUNITY BANKS, INC.
    Loan Portfolio Composition at Period-End
      2024   2023    
    Linked
    Quarter
    Change
         
    Year over
    Year
    Change
     
     (in millions)   Third
    Quarter
          Second
    Quarter
          First
    Quarter
          Fourth
    Quarter
          Third
    Quarter
         
    LOANS BY CATEGORY                                
    Owner occupied commercial RE $ 3,323     $ 3,297     $ 3,310     $ 3,264     $ 3,279     $ 26     $ 44  
    Income producing commercial RE   4,259       4,058       4,206       4,264       4,130     201     129  
    Commercial & industrial   2,313       2,299       2,405       2,411       2,504     14     (191 )
    Commercial construction   1,785       2,014       1,936       1,860       1,850     (229 )   (65 )
    Equipment financing   1,603       1,581       1,544       1,541       1,534     22     69  
    Total commercial   13,283       13,249       13,401       13,340       13,297     34     (14 )
    Residential mortgage   3,263       3,266       3,240       3,199       3,043     (3 )   220  
    Home equity   1,015       985       969       959       941     30     74  
    Residential construction   189       211       257       302       399     (22 )   (210 )
    Manufactured housing   2       321       328       336       343     (319 )   (341 )
    Consumer   188       183       180       181       180     5     8  
    Other   24       (4 )           2           28     24  
    Total loans $ 17,964     $ 18,211     $ 18,375     $ 18,319     $ 18,203     $ (247 )   $ (239 )
                                                       
    LOANS BY MARKET                                                  
    Georgia $ 4,470     $ 4,411     $ 4,356     $ 4,357     $ 4,321     $ 59     $ 149  
    South Carolina   2,782       2,779       2,804       2,780       2,801     3     (19 )
    North Carolina   2,586       2,591       2,566       2,492       2,445     (5 )   141  
    Tennessee   1,848       2,144       2,209       2,244       2,314     (296 )   (466 )
    Florida   2,423       2,407       2,443       2,442       2,318     16     105  
    Alabama   996       1,021       1,068       1,082       1,070     (25 )   (74 )
    Commercial Banking Solutions   2,859       2,858       2,929       2,922       2,934     1     (75 )
    Total loans $ 17,964     $ 18,211     $ 18,375     $ 18,319     $ 18,203     $ (247 )   $ (239 )
    UNITED COMMUNITY BANKS, INC.                                    
    Credit Quality                                    
    (in thousands)                                    
          2024                        
        Third
    Quarter
      Second
    Quarter
      First
    Quarter
                           
    NONACCRUAL LOANS                                    
    Owner occupied RE   $ 7,783     $ 4,820     $ 2,310                          
    Income producing RE     31,222       34,285       29,186                          
    Commercial & industrial     28,856       17,335       20,134                          
    Commercial construction     7,356       6,854       1,862                          
    Equipment financing     9,123       8,341       8,829                          
    Total commercial     84,340       71,635       62,321                          
    Residential mortgage     21,851       18,473       16,569                          
    Home equity     4,111       3,779       4,984                          
    Residential construction     118       163       1,244                          
    Manufactured housing     1,808       20,356       19,797                          
    Consumer     152       72       54                          
    Total nonaccrual loans     112,380       114,478       104,969                          
    OREO and repossessed assets     2,580       2,244       2,261                          
    Total NPAs   $ 114,960     $ 116,722     $ 107,230                          
          2024  
        Third Quarter   Second Quarter   First Quarter
    (in thousands)   Net Charge-
    Offs
        Net Charge-
    Offs to
    Average Loans
    (1)
        Net Charge-
    Offs
      Net Charge-
    Offs to
    Average
    Loans
    (1)
      Net Charge-
    Offs
      Net Charge-
    Offs to
    Average
    Loans
    (1)
    NET CHARGE-OFFS (RECOVERIES) BY CATEGORY                            
    Owner occupied RE   $ (184 )     (0.02 )%   $ 163       0.02 %   $ 202       0.02 %
    Income producing RE     1,409       0.13       2,968       0.29       205       0.02  
    Commercial & industrial     4,577       0.79       1,281       0.22       3,906       0.65  
    Commercial construction     36       0.01       (48 )     (0.01 )     20        
    Equipment financing     5,268       1.32       5,502       1.42       6,362       1.66  
    Total commercial     11,106       0.33       9,866       0.30       10,695       0.32  
    Residential mortgage     32             (107 )     (0.01 )     (16 )      
    Home equity     36       0.01       (27 )     (0.01 )     (54 )     (0.02 )
    Residential construction     111       0.22       26       0.04       119       0.17  
    Manufactured housing     11,556       28.51       1,150       1.43       1,569       1.90  
    Consumer     810       1.74       706       1.57       595       1.33  
    Total   $ 23,651       0.52     $ 11,614       0.26     $ 12,908       0.28  
                                 
    (1)Annualized.                            
    UNITED COMMUNITY BANKS, INC.
    Consolidated Balance Sheets (Unaudited)
    (in thousands, except share and per share data)   September 30,
    2024
      December 31,
    2023
    ASSETS        
    Cash and due from banks   $ 202,644     $ 200,781  
    Interest-bearing deposits in banks     537,395       803,094  
    Cash and cash equivalents     740,039       1,003,875  
    Debt securities available-for-sale     4,023,455       3,331,084  
    Debt securities held-to-maturity (fair value $2,060,729 and $2,095,620, respectively)     2,401,877       2,490,848  
    Loans held for sale     49,800       33,008  
    Loans and leases held for investment     17,964,099       18,318,755  
    Allowance for credit losses – loans and leases     (205,290 )     (208,071 )
    Loans and leases, net     17,758,809       18,110,684  
    Premises and equipment, net     396,696       378,421  
    Bank owned life insurance     345,703       345,371  
    Goodwill and other intangible assets, net     975,117       990,087  
    Other assets     681,636       613,873  
    Total assets   $ 27,373,132     $ 27,297,251  
    LIABILITIES AND SHAREHOLDERS’ EQUITY        
    Liabilities:        
    Deposits:        
    Noninterest-bearing demand   $ 6,222,518     $ 6,534,307  
    NOW and interest-bearing demand     5,951,900       6,155,193  
    Money market     6,301,956       5,600,587  
    Savings     1,113,168       1,207,807  
    Time     3,490,399       3,649,498  
    Brokered     173,161       163,219  
    Total deposits     23,253,102       23,310,611  
    Long-term debt     316,363       324,823  
    Accrued expenses and other liabilities     396,987       400,292  
    Total liabilities     23,966,452       24,035,726  
    Shareholders’ equity:        
    Preferred stock; $1 par value; 10,000,000 shares authorized; 3,662 shares Series I issued and
    outstanding; $25,000 per share liquidation preference
        88,266       88,266  
    Common stock, $1 par value; 200,000,000 shares authorized,
    119,282,762 and 119,010,319 shares issued and outstanding, respectively
        119,283       119,010  
    Common stock issuable; 588,296 and 620,108 shares, respectively     12,661       13,110  
    Capital surplus     2,707,266       2,699,112  
    Retained earnings     668,965       581,219  
    Accumulated other comprehensive loss     (189,761 )     (239,192 )
    Total shareholders’ equity     3,406,680       3,261,525  
    Total liabilities and shareholders’ equity   $ 27,373,132     $ 27,297,251  
    UNITED COMMUNITY BANKS, INC.
    Consolidated Statements of Income (Unaudited)
        Three Months Ended
    September 30,
      Nine Months Ended
    September 30,
    (in thousands, except per share data)     2024       2023       2024       2023  
    Interest revenue:                
    Loans, including fees   $ 291,574     $ 273,781     $ 867,152     $ 760,696  
    Investment securities, including tax exempt of $1,713, $1,722, $5,133 and $5,563, respectively     52,997       44,729       149,496       125,775  
    Deposits in banks and short-term investments     4,515       4,637       16,131       11,938  
    Total interest revenue     349,086       323,147       1,032,779       898,409  
                     
    Interest expense:                
    Deposits:                
    NOW and interest-bearing demand     43,401       35,613       133,522       80,809  
    Money market     56,874       46,884       160,883       105,430  
    Savings     672       868       2,065       2,108  
    Time     35,202       33,368       107,925       75,464  
    Deposits     136,149       116,733       404,395       263,811  
    Short-term borrowings     27       189       87       3,186  
    Federal Home Loan Bank advances                       5,761  
    Long-term debt     3,724       3,669       11,262       11,339  
    Total interest expense     139,900       120,591       415,744       284,097  
    Net interest revenue     209,186       202,556       617,035       614,312  
    Provision for credit losses     14,428       30,268       39,562       74,804  
    Net interest revenue after provision for credit losses     194,758       172,288       577,473       539,508  
                     
    Noninterest income:                
    Service charges and fees     10,488       10,315       30,372       28,791  
    Mortgage loan gains and other related fees     3,520       6,159       17,830       17,264  
    Wealth management fees     6,338       6,451       19,037       17,775  
    Net (losses) gains from sales of other loans     (25,700 )     2,688       (22,867 )     6,909  
    Lending and loan servicing fees     3,512       2,985       11,050       9,979  
    Securities losses, net                       (1,644 )
    Other     9,933       3,379       28,812       19,499  
    Total noninterest income     8,091       31,977       84,234       98,573  
    Total revenue     202,849       204,265       661,707       638,081  
                     
    Noninterest expenses:                
    Salaries and employee benefits     83,533       81,173       254,336       236,121  
    Communications and equipment     12,626       10,902       36,534       31,654  
    Occupancy     11,311       10,941       33,466       31,024  
    Advertising and public relations     2,041       2,251       6,401       6,914  
    Postage, printing and supplies     2,477       2,386       7,376       7,305  
    Professional fees     6,432       7,006       18,464       19,670  
    Lending and loan servicing expense     2,227       2,697       6,068       7,546  
    Outside services – electronic banking     4,433       2,561       10,163       8,646  
    FDIC assessments and other regulatory charges     5,003       4,314       17,036       12,457  
    Amortization of intangibles     3,528       4,171       11,209       11,120  
    Merger-related and other charges     2,176       9,168       6,420       21,444  
    Other     7,278       6,904       27,638       22,785  
    Total noninterest expenses     143,065       144,474       435,111       416,686  
    Income before income taxes     59,784       59,791       226,596       221,395  
    Income tax expense     12,437       11,925       50,003       47,941  
    Net income     47,347       47,866       176,593       173,454  
    Preferred stock dividends, net of discount on repurchases     1,573       832       4,719       4,270  
    Earnings allocated to participating securities     272       259       988       939  
    Net income available to common shareholders   $ 45,502     $ 46,775     $ 170,886     $ 168,245  
                     
    Net income per common share:                
    Basic   $ 0.38     $ 0.39     $ 1.43     $ 1.44  
    Diluted     0.38       0.39       1.43       1.44  
    Weighted average common shares outstanding:                
    Basic     119,818       119,506       119,736       116,925  
    Diluted     119,952       119,624       119,827       117,084  
    UNITED COMMUNITY BANKS, INC.
    Average Consolidated Balance Sheets and Net Interest Analysis
    For the Three Months Ended September 30,
          2024       2023  
    (dollars in thousands, fully taxable equivalent (FTE))   Average Balance   Interest   Average Rate   Average Balance   Interest   Average Rate
    Assets:                        
    Interest-earning assets:                        
    Loans, net of unearned income (FTE)(1)(2)   $ 18,051,741     $ 291,164       6.42 %   $ 18,055,402     $ 273,800       6.02 %
    Taxable securities(3)     6,182,164       51,284       3.32       5,933,708       43,007       2.90  
    Tax-exempt securities (FTE)(1)(3)     361,359       2,292       2.54       368,148       2,313       2.51  
    Federal funds sold and other interest-earning assets     505,792       5,440       4.28       538,039       5,093       3.76  
    Total interest-earning assets (FTE)     25,101,056       350,180       5.55       24,895,297       324,213       5.17  
                             
    Noninterest-earning assets:                        
    Allowance for credit losses     (215,008 )             (209,472 )        
    Cash and due from banks     206,995               225,831          
    Premises and equipment     399,262               367,217          
    Other assets(3)     1,615,468               1,568,824          
    Total assets   $ 27,107,773             $ 26,847,697          
                             
    Liabilities and Shareholders’ Equity:                        
    Interest-bearing liabilities:                        
    Interest-bearing deposits:                        
    NOW and interest-bearing demand   $ 5,797,845       43,401       2.98     $ 5,285,513       35,613       2.67  
    Money market     6,342,455       56,874       3.57       5,622,355       46,884       3.31  
    Savings     1,126,774       672       0.24       1,301,047       868       0.26  
    Time     3,465,980       34,560       3.97       3,473,191       31,072       3.55  
    Brokered time deposits     50,364       642       5.07       209,119       2,296       4.36  
    Total interest-bearing deposits     16,783,418       136,149       3.23       15,891,225       116,733       2.91  
    Federal funds purchased and other borrowings     1,899       27       5.66       44,164       189       1.70  
    Federal Home Loan Bank advances     11                                
    Long-term debt     323,544       3,724       4.58       324,770       3,669       4.48  
    Total borrowed funds     325,454       3,751       4.59       368,934       3,858       4.15  
    Total interest-bearing liabilities     17,108,872       139,900       3.25       16,260,159       120,591       2.94  
                             
    Noninterest-bearing liabilities:                        
    Noninterest-bearing deposits     6,239,926               6,916,272          
    Other liabilities     391,574               435,592          
    Total liabilities     23,740,372               23,612,023          
    Shareholders’ equity     3,367,401               3,235,674          
    Total liabilities and shareholders’ equity   $ 27,107,773             $ 26,847,697          
                             
    Net interest revenue (FTE)       $ 210,280             $ 203,622      
    Net interest-rate spread (FTE)             2.30 %             2.23 %
    Net interest margin (FTE)(4)             3.33 %             3.24 %

    (1) Interest revenue on tax-exempt securities and loans includes a taxable-equivalent adjustment to reflect comparable interest on taxable securities and loans. The FTE adjustment totaled $1.09 million and $1.07 million, respectively, for the three months ended September 30, 2024 and 2023. The tax rate used to calculate the adjustment was 25% in 2024 and 26% in 2023, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
    (2) Included in the average balance of loans outstanding are loans on which the accrual of interest has been discontinued and loans that are held for sale.
    (3) Unrealized gains and losses on AFS securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $295 million in 2024 and $430 million in 2023 are included in other assets for purposes of this presentation.
    (4) Net interest margin is taxable equivalent net interest revenue divided by average interest-earning assets.

    UNITED COMMUNITY BANKS, INC.
    Average Consolidated Balance Sheets and Net Interest Analysis
    For the Nine Months Ended September 30,
          2024       2023  
    (dollars in thousands, fully taxable equivalent (FTE))   Average Balance   Interest   Average Rate   Average Balance   Interest   Average Rate
    Assets:                        
    Interest-earning assets:                        
    Loans, net of unearned income (FTE)(1)(2)   $ 18,187,790     $ 866,502       6.36 %   $ 17,377,210     $ 760,802       5.85 %
    Taxable securities(3)     5,988,368       144,363       3.21       5,982,615       120,212       2.68  
    Tax-exempt securities (FTE)(1)(3)     363,692       6,876       2.52       386,499       7,470       2.58  
    Federal funds sold and other interest-earning assets     559,786       18,256       4.36       490,703       13,103       3.57  
    Total interest-earning assets (FTE)     25,099,636       1,035,997       5.51       24,237,027       901,587       4.97  
                             
    Non-interest-earning assets:                        
    Allowance for loan losses     (214,372 )             (186,428 )        
    Cash and due from banks     210,982               249,411          
    Premises and equipment     392,561               347,514          
    Other assets(3)     1,613,118               1,518,503          
    Total assets   $ 27,101,925             $ 26,166,027          
                             
    Liabilities and Shareholders’ Equity:                        
    Interest-bearing liabilities:                        
    Interest-bearing deposits:                        
    NOW and interest-bearing demand   $ 5,913,566       133,522       3.02     $ 4,891,214       80,809       2.21  
    Money market     6,092,649       160,883       3.53       5,349,265       105,430       2.64  
    Savings     1,159,982       2,065       0.24       1,341,033       2,108       0.21  
    Time     3,535,343       106,199       4.01       2,936,873       65,856       3.00  
    Brokered time deposits     50,343       1,726       4.58       280,293       9,608       4.58  
    Total interest-bearing deposits     16,751,883       404,395       3.22       14,798,678       263,811       2.38  
    Federal funds purchased and other borrowings     2,001       87       5.81       98,884       3,186       4.31  
    Federal Home Loan Bank advances     5                   166,355       5,761       4.63  
    Long-term debt     324,414       11,262       4.64       324,737       11,339       4.67  
    Total borrowed funds     326,420       11,349       4.64       589,976       20,286       4.60  
    Total interest-bearing liabilities     17,078,303       415,744       3.25       15,388,654       284,097       2.47  
                             
    Noninterest-bearing liabilities:                        
    Noninterest-bearing deposits     6,306,919               7,226,096          
    Other liabilities     394,323               393,048          
    Total liabilities     23,779,545               23,007,798          
    Shareholders’ equity     3,322,380               3,158,229          
    Total liabilities and shareholders’ equity   $ 27,101,925             $ 26,166,027          
                             
    Net interest revenue (FTE)       $ 620,253             $ 617,490      
    Net interest-rate spread (FTE)             2.26 %             2.50 %
    Net interest margin (FTE)(4)             3.30 %             3.41 %
                             

    (1) Interest revenue on tax-exempt securities and loans includes a taxable-equivalent adjustment to reflect comparable interest on taxable securities and loans. The FTE adjustment totaled $3.22 million and $3.18 million, respectively, for the nine months ended September 30, 2024 and 2023. The tax rate used to calculate the adjustment was 25% in 2024 and 26% in 2023, reflecting the statutory federal income tax rate and the federal tax adjusted state income tax rate.
    (2) Included in the average balance of loans outstanding are loans on which the accrual of interest has been discontinued and loans that are held for sale.
    (3) Unrealized gains and losses on AFS securities, including those related to the transfer from AFS to HTM, have been reclassified to other assets. Pretax unrealized losses of $320 million in 2024 and $413 million in 2023 are included in other assets for purposes of this presentation.
    (4) Net interest margin is taxable equivalent net-interest revenue divided by average interest-earning assets.

    About United Community Banks, Inc.
    United Community Banks, Inc. (NYSE: UCB) is the financial holding company for United Community, a top 100 U.S. financial institution that is committed to improving the financial health and well-being of its customers and the communities it serves. United Community provides a full range of banking, wealth management and mortgage services. As of September 30, 2024, United Community Banks, Inc. had $27.4 billion in assets, 202 offices across Alabama, Florida, Georgia, North Carolina, South Carolina, and Tennessee, as well as a national SBA lending franchise and a national equipment lending subsidiary. In 2024, United Community became a 10-time winner of J.D. Power’s award for the best customer satisfaction among consumer banks in the Southeast region and was recognized as the most trusted bank in the Southeast. In 2023, United was named by American Banker as one of the “Best Banks to Work For” for the seventh consecutive year and was recognized in the Greenwich Excellence and Best Brands Awards, receiving 15 awards that included national honors for overall satisfaction in small business banking and middle market banking. Forbes has also consistently listed United Community as one of the World’s Best Banks and one of America’s Best Banks. Additional information about United can be found at ucbi.com.

    Non-GAAP Financial Measures
    This press release, including the accompanying financial statement tables, contains financial information determined by methods other than in accordance with generally accepted accounting principles, or GAAP. This financial information includes certain operating performance measures, which exclude merger-related and other charges that are not considered part of recurring operations, such as “noninterest income – operating”, “noninterest expense – operating”, “operating net income,” “pre-tax, pre-provision income,” “operating net income per diluted common share,” “operating earnings per share,” “tangible book value per common share,” “operating return on common equity,” “operating return on tangible common equity,” “operating return on assets,” “return on assets – pre-tax, pre-provision – operating,” “return on assets – pre-tax, pre-provision,” “operating efficiency ratio,” and “tangible common equity to tangible assets.” These non-GAAP measures are included because United believes they may provide useful supplemental information for evaluating United’s underlying performance trends. These measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. To the extent applicable, reconciliations of these non-GAAP measures to the most directly comparable measures as reported in accordance with GAAP are included with the accompanying financial statement tables.

    Caution About Forward-Looking Statements
    This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In general, forward-looking statements usually may be identified through use of words such as “may,” “believe,” “expect,” “anticipate,” “intend,” “will,” “should,” “plan,” “estimate,” “predict,” “continue” and “potential,” or the negative of these terms or other comparable terminology. Forward-looking statements are not historical facts and represent management’s beliefs, based upon information available at the time the statements are made, with regard to the matters addressed; they are not guarantees of future performance. Actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Forward-looking statements are subject to numerous assumptions, risks and uncertainties that change over time and could cause actual results or financial condition to differ materially from those expressed in or implied by such statements. Factors that could cause or contribute to such differences include, but are not limited to general competitive, economic, political and market conditions. Further information regarding additional factors which could affect the forward-looking statements contained in this press release can be found in the cautionary language included under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in United’s Annual Report on Form 10-K for the year ended December 31, 2023, and other documents subsequently filed by United with the United States Securities and Exchange Commission (“SEC”).

    Many of these factors are beyond United’s ability to control or predict. If one or more events related to these or other risks or uncertainties materialize, or if the underlying assumptions prove to be incorrect, actual results may differ materially from the forward-looking statements. Accordingly, shareholders and investors should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date of this communication, and United undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for United to predict their occurrence or how they will affect United.

    United qualifies all forward-looking statements by these cautionary statements.

    For more information:
    Jefferson Harralson
    Chief Financial Officer
    (864) 240-6208
    Jefferson_Harralson@ucbi.com

    The MIL Network

  • MIL-OSI United Kingdom: Firm shut down for falsely offering ‘early resolution’ to IVA debt solutions

    Source: United Kingdom – Executive Government & Departments

    Firm offered advice on early resolution to customers’ IVA debt solutions despite not being licensed to provide financial or debt advice

    • McKenzie Jones Associates charged fees to help end customers’ IVAs early 

    • The company promised full refunds if IVAs did not reach an early solution – but investigators found no evidence that refunds were made 

    • Investigation found the firm had taken almost £55,000 in fees for this service, but a lack of company records prevented its full financial position from being uncovered 

    A company which claimed to help customers reach an early resolution to their Individual Voluntary Arrangements (IVAs), but instead exposed them to the risk of their debt solution failing, has been closed down. 

    McKenzie Jones Associates, which was last registered to an address in Kent Road, Formby, near Liverpool, was wound up at the High Court in Manchester on 22 October 2024. 

    The company sent unsolicited letters to people who had an IVA, which led to offers to help secure an early resolution to the debt solution for a fee.

    IVAs are legally-binding agreements with creditors to pay all or part of a person’s debts, and usually last about five years. 

    Sales staff for the company told customers it would refund the fee if it did not achieve an early resolution of their IVAs. 

    The company also falsely advised customers that their IVA supervisors – the Insolvency Practitioners administering their debt solutions – must place the IVAs on hold and suggested that customers should refuse to speak to their IVA supervisors if they contacted them.

    However McKenzie Jones Associates was not registered with the Financial Conduct Authority to provide debt advice, and their advice exposed customers to the risk of their IVAs failing.

    David Usher, Chief Investigator at the Insolvency Service, said

    McKenzie Jones Associates took advantage of people in debt to offer them a solution that was unlikely to work and gave advice which jeopardised the success of their IVAs. 

    The Insolvency Service has powers to remove companies that operate against the public interest. 

    We will shut down businesses that prey on people facing tough times and protect the public from further financial harm. 

    The company generated custom by sending letters to people listed on the Individual Insolvency Register, inviting them to call a freephone number to discuss ‘financially beneficial information’. 

    Those who responded were offered help to encourage their IVA Supervisors to propose an early resolution of the IVA, known as a ‘Paid to Date’ solution, to their creditors. 

    Sales staff for McKenzie Jones Associates advised customers that they would use ‘new government legislation’ to help them exit their IVA. But investigators found this ‘legislation’ was in fact guidance for Insolvency Practitioners on specific considerations for recommending a Paid to Date solution. 

    One customer was told that she would be debt free in six months if she used the company’s services. 

    But in reality the likelihood of such an early resolution was very low. 

    The firm typically charged a £450 fee, paid over six instalments of £75.

    Their customer records showed 424 files related to Paid to Date, and investigators found that the company had received at least £54,900 from clients under the Paid to Date scheme, but had made no provision to pay refunds. 

    None of the customers who responded to the investigation had benefited from the services offered by the company or received a refund. 

    And as the firm’s directors failed to maintain or hand over all the company’s books, investigators were unable to establish the true financial position of the company, including the full amount it had received under the scheme, or the amount McKenzie Jones Associates had refunded – if any – to clients.

    They were also unable to verify the accuracy of accounts filed for the periods ending 31 December 2020 and 31 December 2021, or confirm whether receipts of £128,996 and payments from £129,046 in McKenzie Jones Associates’ bank accounts were legitimate business transactions. 

    McKenzie Jones Associates ceased trading in April 2023. 

    The Official Receiver was appointed by the court as liquidator of the company. All enquiries concerning the affairs of McKenzie Jones Associates should be made to the Official Receiver of the Public Interest Unit: 16th Floor, 1 Westfield Avenue, Stratford, London, E20 1HZ. Email: piu.or@insolvency.gov.uk.

    Further Information

    Updates to this page

    Published 23 October 2024

    MIL OSI United Kingdom

  • MIL-OSI Russia: The government will continue to monitor the situation with butter prices

    Translation. Region: Russian Federation –

    Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

    Deputy Prime Minister Dmitry Patrushev reported this during a meeting he held with the participation of dairy producers and processors, representatives of large retail chains and interested departments. As noted, imports from a number of countries were intensified to stabilize prices.

    “However, this should not cancel the task of systematically increasing production. The dairy industry is a socially significant area of the agro-industrial complex. Understanding this, the Government has been providing producers and processors with a whole range of state support measures for several years now,” Dmitry Patrushev emphasized.

    This includes preferential working capital and investment lending, preferential leasing, and there are measures within the framework of the unified subsidy. Thus, the Government is doing its utmost to prevent a slowdown in the production of raw materials and processed products.

    The Deputy Prime Minister also noted that oil is subject to mandatory labeling. This ensures its full traceability – right up to the moment of purchase. This makes it possible to monitor the entire pricing chain.

    Following the meeting, interested departments were given a number of instructions to stabilize prices for butter on the domestic market.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News

  • MIL-OSI USA: A Long, Long Time Ago, in Galaxies Near and Far

    Source: US State of Connecticut

    Until now, space exploration has been dominated by two categories of missions – flagship missions, like the James Webb and Hubble Space Telescopes, and smaller-scale missions – with little in between. 

    Cara Battersby is an associate professor of physics at UConn.

    But a “happy medium” can help fill in the gaps of information gleaned from these two mission types. Recognizing this, NASA’s Probe Explorers program recently selected two probe designs to receive $5 million funding for development over the next 12 months. The two designs will then compete to receive $1 billion funding to get off the ground – literally – and launch in 2032. 

    One of these probe concepts, PRIMA (PRobe far-Infrared Mission for Astrophysics), has been developed by an international team including UConn physics associate professor Cara Battersby, who leads one of the project’s key science objectives.  

    If selected for launch, it will use far-infrared sensing technology to illuminate the secrets of the universe, helping scientists understand our own and surrounding galaxies.

    Uncovering Galactic Secrets in Hidden Wavelengths

    “This observatory is designed to fill this enormous gap in wavelength coverage between the mid-infrared all the way to the submillimeter,” Battersby says.  

    The James Webb telescope can “see” in the mid-infrared range of electromagnetic radiation, while the ALMA telescope in Chile can “see” in the submillimeter range. Everything in between is known as the “far infrared” range. This frequency of radiation isn’t visible to the human eye, or even from Earth itself, Battersby points out. 

    “The Earth’s atmosphere completely absorbs this wavelength of light that comes from interstellar space – distant galaxies, forming planets,” she says. “So there’s really no existing or planned telescope that can cover this wavelength gap. The fact that NASA is supporting the next phase for this mission is really exciting, and the science that it enables it is breathtaking.” 

    In space, PRIMA would use this wavelength range to understand the time period between “cosmic dawn” and “cosmic noon,” which encompasses the first era of galaxy formation and the peak of cosmic star formation in the universe. It would also uncover new data to explain how planets and their atmospheres develop. Battersby herself is leading the star and planet formation group on the PRIMA team. 

    In other words, PRIMA would provide the entire astronomy community with critical insights from this key wavelength range that can help us understand our cosmic origins: from the formation of stars and planets to the buildup of elements and the evolution of galaxies over cosmic time. 

    Battersby compares the current state of astrophysics to looking at a crowd of people and attempting to guess their ages, without knowing much about human development. If you didn’t have background knowledge – that children are generally shorter than adults, for instance – it would be impossible. 

    But if, instead, you understand that people generally get taller as they mature, and that there are exceptions (some people are always very short; some are tall from a young age), you can start to sort people visually and make educated guesses about how old they are. 

    Likewise, if you understand what distinguishes an older galaxy from a younger one, you can start to piece together the story of how space took shape over billions of years. 

    “We see these pictures of populations of galaxies, and we don’t know what they were like when they first formed and how they grew. What controls how big a galaxy can get or how many stars it can form? Does it make a really big black hole or really small black hole?” Battersby says. “In order make sense of the data, you need to uncover pictures of the galaxies when they were young and follow them as they grow. Only then can you put the timeline together.”

    Cara Battersby (right) and graduate student Rachel Lee (left) at the Max Planck Institute for Astronomy, in Heidelberg, Germany. (Courtesy of Cara Battersby)

    Enriching Scientific Community on Earth

    In addition to the sheer scientific advancement potential, Battersby is excited about PRIMA’s ability to enrich the entire astronomy community – and provide UConn students with some truly once-in-a-lifetime research opportunities. 

    “A large percentage of the time the observatory is actually operating will be devoted to the astronomy community,” she says. “They can put in proposals to do their favorite science [with PRIMA]. We actually had a community call for proposals, and we had about 70 people write papers about what they would like to do with the telescope – so there’s a ton of community interest.” 

    And if PRIMA is selected to launch, that means Battersby’s students at UConn will have a chance to get involved with this historic project. In fact, one of her graduate students, Rachel Lee, is already nearing publication on a paper exploring some potential applications for PRIMA. 

    “I’m really excited about what this opportunity will mean for students at UConn moving forward, because there will be a chance to make meaningful impacts on this mission that has a very good likelihood of going into space,” she says. “That’s really unique. I certainly never had that opportunity as a student. Working on this is one of the coolest things I’ve done in my career, and now that’s something that UConn students could have a chance to do – they could be part of this whole team.” 

    PRIMA’s principal investigator is Jason Glenn of the NASA Goddard Space Flight Center. 

    MIL OSI USA News