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Wednesday, October 25, 2023

News Nuggets | 25 October: DCG Earnings Surge with BTC; FMA Alerts on Social Ads

Digital Currency Group’s
Q3 Revenue Soars amid Crypto Rebound

Digital
Currency Group (DCG) reported an increase of 23% in its third-quarter revenue ↗,
reaching $188 million compared to $153 million in the same period last year.
The company’s EBITDA stood at $69 million.

DCG’s asset
management unit, Grayscale Investments, played a significant role in this
growth, especially after a US court approved its bid to create a spot Bitcoin
ETF. The crypto market’s rebound this year, particularly Bitcoin’s 100%
year-to-date growth, has been a significant factor in DCG’s financial
performance.

FMA NZ Warns against Fixed
Rate Options’ Social Media Ads

The
Financial Markets Authority of New Zealand (FMA ↗) has issued a warning about
advertisements from “Fixed Rate Options” appearing on social media
platforms like Facebook and Instagram. These ads claim to help consumers find
the “top five performing fixed-term deposits in 2023.” However, the
FMA believes these ads are a scam designed to harvest personal information from
New Zealanders.

Upon
clicking the advertisement, individuals are directed to an online form asking
for personal details and investment information. The FMA suspects that this is
a front for collecting data, which is then used to contact people with fake
investment opportunities. The authority advises New Zealanders to exercise
extreme caution and avoid clicking on these ads or providing any personal
information.

SEC Charges BlackRock over
Misleading Investment Disclosures

The
Securities and Exchange Commission (SEC ↗) has charged BlackRock Advisors for
failing to describe investments in the entertainment industry accurately. The
company agreed to pay a penalty of $2.5 million to settle the charges.

From 2015
to 2019, BlackRock inaccurately described its investments in Aviron Group as a
“Diversified Financial Services” company and misrepresented the
interest rates. The SEC emphasized the importance of accurate disclosures for
retail and institutional investors.

Temenos Reports Stellar Q3
Performance

Temenos ↗, a
software company, announced impressive growth in its Q3-23 results, including an increase of 25% in total software licensing. The company’s EBIT grew by 44%, and
its free cash flow surged substantially to 479%.

Temenos
also revised its full-year guidance, raising its ARR, EBIT, and EPS growth
expectations. The strong performance is attributed to subscription revenue
growth of 36% and SaaS revenue growth of 23% in Q3-23.

Singapore’s MAS
Investigates DBS and Citibank over Outage

The
Monetary Authority of Singapore (MAS ↗) has ordered DBS and Citibank to
investigate a recent outage that disrupted their online and payment services.
The outage occurred due to a cooling system issue during a planned upgrade at a
data center.

MAS expects
the banks to establish agreements with data center providers that meet the
regulator’s system availability requirements. The banks have been instructed to
thoroughly investigate the delay in restoring services.

Deutsche Bank Posts Modest
Profit Growth

Deutsche
Bank
reported an incremental increase of 3% in its nine-month profit before tax, amounting to
€5.0 billion. Despite inflation pressures, the bank managed to keep its costs
under control, with a marginal improvement of 2% in adjusted costs.

Deutsche
Bank also reported strong capital management, with its Common Equity Tier 1
(CET1) ratio rising to 13.9%. The bank has raised its capital outlook,
providing scope to free up an additional €3 billion of capital.

Banco Santander Beats
Earnings Estimates

Banco
Santander
reported a net income of €2.9 billion in the third quarter, exceeding
analysts’ expectations. The bank’s net interest income rose 6.6% from the
previous quarter to €11.2 billion.

Higher
interest rates in Europe and Mexico contributed to the bank’s revenue growth,
offsetting a rise in loan loss provisions, which stood at €3.3 billion for the
quarter.

Barclays Faces Market
Value Dip

Unlike the
two above, Barclays Plc ↗ experienced a significant drop in its market value
after lowering its forecast for lending profitability. The bank’s shares fell
by as much as 10% before recovering some of the losses.

The
reduction in full-year net interest margin estimates comes as UK banks are
offering higher interest rates to attract deposits, affecting Barclays’
profitability.

Digital Currency Group’s
Q3 Revenue Soars amid Crypto Rebound

Digital
Currency Group (DCG) reported an increase of 23% in its third-quarter revenue ↗,
reaching $188 million compared to $153 million in the same period last year.
The company’s EBITDA stood at $69 million.

DCG’s asset
management unit, Grayscale Investments, played a significant role in this
growth, especially after a US court approved its bid to create a spot Bitcoin
ETF. The crypto market’s rebound this year, particularly Bitcoin’s 100%
year-to-date growth, has been a significant factor in DCG’s financial
performance.

FMA NZ Warns against Fixed
Rate Options’ Social Media Ads

The
Financial Markets Authority of New Zealand (FMA ↗) has issued a warning about
advertisements from “Fixed Rate Options” appearing on social media
platforms like Facebook and Instagram. These ads claim to help consumers find
the “top five performing fixed-term deposits in 2023.” However, the
FMA believes these ads are a scam designed to harvest personal information from
New Zealanders.

Upon
clicking the advertisement, individuals are directed to an online form asking
for personal details and investment information. The FMA suspects that this is
a front for collecting data, which is then used to contact people with fake
investment opportunities. The authority advises New Zealanders to exercise
extreme caution and avoid clicking on these ads or providing any personal
information.

SEC Charges BlackRock over
Misleading Investment Disclosures

The
Securities and Exchange Commission (SEC ↗) has charged BlackRock Advisors for
failing to describe investments in the entertainment industry accurately. The
company agreed to pay a penalty of $2.5 million to settle the charges.

From 2015
to 2019, BlackRock inaccurately described its investments in Aviron Group as a
“Diversified Financial Services” company and misrepresented the
interest rates. The SEC emphasized the importance of accurate disclosures for
retail and institutional investors.

Temenos Reports Stellar Q3
Performance

Temenos ↗, a
software company, announced impressive growth in its Q3-23 results, including an increase of 25% in total software licensing. The company’s EBIT grew by 44%, and
its free cash flow surged substantially to 479%.

Temenos
also revised its full-year guidance, raising its ARR, EBIT, and EPS growth
expectations. The strong performance is attributed to subscription revenue
growth of 36% and SaaS revenue growth of 23% in Q3-23.

Singapore’s MAS
Investigates DBS and Citibank over Outage

The
Monetary Authority of Singapore (MAS ↗) has ordered DBS and Citibank to
investigate a recent outage that disrupted their online and payment services.
The outage occurred due to a cooling system issue during a planned upgrade at a
data center.

MAS expects
the banks to establish agreements with data center providers that meet the
regulator’s system availability requirements. The banks have been instructed to
thoroughly investigate the delay in restoring services.

Deutsche Bank Posts Modest
Profit Growth

Deutsche
Bank
reported an incremental increase of 3% in its nine-month profit before tax, amounting to
€5.0 billion. Despite inflation pressures, the bank managed to keep its costs
under control, with a marginal improvement of 2% in adjusted costs.

Deutsche
Bank also reported strong capital management, with its Common Equity Tier 1
(CET1) ratio rising to 13.9%. The bank has raised its capital outlook,
providing scope to free up an additional €3 billion of capital.

Banco Santander Beats
Earnings Estimates

Banco
Santander
reported a net income of €2.9 billion in the third quarter, exceeding
analysts’ expectations. The bank’s net interest income rose 6.6% from the
previous quarter to €11.2 billion.

Higher
interest rates in Europe and Mexico contributed to the bank’s revenue growth,
offsetting a rise in loan loss provisions, which stood at €3.3 billion for the
quarter.

Barclays Faces Market
Value Dip

Unlike the
two above, Barclays Plc ↗ experienced a significant drop in its market value
after lowering its forecast for lending profitability. The bank’s shares fell
by as much as 10% before recovering some of the losses.

The
reduction in full-year net interest margin estimates comes as UK banks are
offering higher interest rates to attract deposits, affecting Barclays’
profitability.

James Mackreides
James Mackreides
'Mac' is a short tempered former helicopter pilot , now a writer based in Sofia, Bulgaria. Loves dogs, the outdoors and staying far away from the ocean.

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