Thursday 30 October 2008

Banks continued to queue up for state aid. In Austria, Erste Group Bank said it will be getting a 2.7 billion euro ($3.4 billion) equity injection from the Austrian government at annual interest of 8 percent, as it posted results in line with estimates.
And Kazakhstan's BTA said it expected the government to inject $2.3 billion into its capital as part of a $5 billion bank bailout package announced earlier this week.
Erste is the first Austrian bank to accept capital from the state's 100 billion euro bank support programme and a major lender in emerging Europe. The move will boost its tier 1 capital ratio to more than 10 percent by the end of the year, when it expected the deal to close.
Erste posted a 17 percent decline in third-quarter net profit before one-off gains, as loan loss provisions more than doubled, its trading profit almost evaporated and costs continued to rise.
And in the UK, Lloyds TSB named its management team following the proposed takeover of HBOS, a deal done before the UK government unveiled its support package for the banking system.
The line-up was dominated by names from Lloyd's existing team, with only two out of nine coming from HBOS.
Lloyds stepped in to buy HBOS last month in a government-brokered deal, after its rival was hit by the credit crunch and concerns about its exposure to the UK housing market

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