UBS Group AG said clients pulled a net 15.2 billion francs in the final three months of last year, and margins at its wealth management business declined for a third straight quarter, even as rising stock markets and higher interest rates in the U.S. lifted earnings. The bank fell as much as 3.6 percent in Zurich trading, pulling other wealth managers lower, after saying all of its money management units saw net redemptions last quarter.
Category: Banking
UBS Profit Beats Estimates as Market Rally Lifts Securities Unit
UBS Group AG said profit more than tripled in the fourth quarter as rising interest rates and a rally in equities boosted the bank’s securities unit and U.S. wealth management. Profit before tax rose to 848 million francs from 234 million francs a year earlier, the Zurich-based bank said Friday in a statement.
BlackRock’s $1 Trillion Move to JPMorgan Shows Cost-Cut Strategy
State Street Corp. on more than $1 trillion in client assets as the asset manager seeks to cut costs by putting pressure on vendors. The move of assets to JPMorgan Chase & Co.
Santander Profit Rises to $1.7 Billion, Beating Estimates
Banco Santander SA said fourth-quarter profit rose to 1.6 billion euros on lower provisions for bad loans and higher income from fees and from its business in Brazil. Net income at Spain’s biggest bank compared with 25 million euros a year earlier when profit was hit by charges, including provisions for the wrongful sale in the U.K. of payment protection insurance.
Billionaire Seeks Solace in Bonds After Share Sale Stumbles
Yes Bank Ltd.’s billionaire chief Rana Kapoor says he will consider bond sales every year to bolster capital, signaling a new-found appreciation of the debt market after a $1 billion share sale faltered in September. Strong investor interest in a 30-billion rupee perpetual bond sale last month has now given Kapoor confidence in similar transactions to raise his Mumbai-based bank’s buffers against potential losses, he told reporters last week.
Fed’s Lacker favors faster rate hike path to curb inflation
Jeffrey Lacker, the hawkish president of the Federal Reserve Bank of Richmond, said on Monday he is worried inflation could surge unless the U.S. central bank raises interest rates faster than his fellow policymakers anticipate. “Right now I think we are at risk of getting behind the curve, so lately I’ve been an advocate of pushing rates up a little more aggressively than my colleagues,” Lacker said in an interview on WCVE, a Richmond public radio station.
Friday’s ETF with Unusual Volume: KBWR
The PowerShares KBW Regional Banking Portfolio ETF is seeing unusually high volume in afternoon trading Friday, with over 296,000 shares traded versus three month average volume of about 77,000. Shares of KBWR were up about 0.5% on the day.
Draghi’s Role in Elite Finance Group Comes Under EU Scrutiny
The European Union ombudsman has opened an inquiry into European Central Bank President Mario Draghi’s involvement with an elite group of economic leaders. The investigation will consider Draghi’s membership of the Group of 30, a forum of finance executives, academics and policy makers including Bank of England Governor Mark Carney, Warburg Pincus LLC President Tim Geithner, Credit Suisse Group AG Chief Executive Officer Tidjane Thiam, and former ECB chief Jean-Claude Trichet.
Deutsche Bank Burden in Mortgage Settlement Eased by Fine Print
Deutsche Bank AG sought an unusual provision in its $7.2 billion mortgage-bond settlement with the U.S. government, and seems to have ended up winning it: the bank can pay down part of its penalty by lending money to fund managers. As part of the agreement, Germany’s largest bank has to provide $4.1 billion of relief for mortgage borrowers.
Deutsche Bank Burden in Mortgage Settlement Eased by Fine Print
Deutsche Bank AG sought an unusual provision in its $7.2 billion mortgage-bond settlement with the U.S. government, and seems to have ended up winning it: the bank can pay down part of its penalty by lending money to fund managers. As part of the agreement, Germany’s largest bank has to provide $4.1 billion of relief for mortgage borrowers.
BofA Management Admits It Can’t Turn a Profit on Invested Capital
Chief Executive Brian Moynihan has only produced a 6.7% return on shareholder’s equity since taking over in 2010 and thus is returning capital through stock buybacks Brian Moynihan has been chief executive of Bank of America for seven years, and when he took the helm in 2019, return on shareholder equity wasn’t positive. Last year, stock buybacks amounted to $5.1 billion.
U.S. Stock-market Futures Hold Lower After ECB Keeps Rates Unchanged
U.S. stock futures on Thursday traded slightly lower after the European Central Bank kept its interest rates unchanged as expected. Dow futures were off 0.1% at 19,712, the S&P 500 index futures slipped 0.1% at 2,264, while those for the Nasdaq-100 were near break-even levels at 5,051.
European And U.S. Bond Yields Remain Higher After ECB Rate Decision
Yields on U.S. Treasury bonds and European sovereign bonds remained higher on Thursday after the European Central Bank left its benchmark interest rate and bond-buying program unchanged. The yield on the 10-year Treasury rose 1.5 basis point to 2.444%, while the yield on the 10-year German bund, considered the European benchmark, rose 3.3 basis points to 0.389%.
European Central Bank keeps key interest rate on hold
The decision by the eurozone central bank’s 25-member governing council to leave its benchmark borrowing rate on hold had been expected. It was also decided not to change the ECB’s bond-buying stimulus scheme, which was extended last month amid worries about economic growth.
Credit Suisse Tops Market in Zurich After Final $5.3 Billion Mortgage Settlement with DoJ
Credit Suisse Group shares gained Thursday after the investment bank followed rival Deutsche Bank in finalizing a multi-billion dollar mortgage bond settlement with the U.S. Department of Justice. Credit Suisse Group shares rose to the top of the leaderboard in Zurich Thursday after the investment bank followed its German rival, Deutsche Bank AG , in finalizing its multi-billion dollar mortgage bond settlement with the U.S. Department of Justice.
SBI Head Lays Out Deposit Puzzle Faced by India’s Biggest Lender
Analysts scratching their heads over the impact on India’s banks of the country’s move to ban high-value notes have every right to be puzzled, as estimates offered by the chairman of State Bank of India indicate. The bank could retain anything from 15 percent to 40 percent of the deposit boost it received after the government withdrew about four-fifths of the banknotes in circulation in November, Arundhati Bhattacharya said in an interview Wednesday with Bloomberg Television’s Erik Schatzker.
European Stocks Called Higher; ECB Rate Meeting in Focus
European stocks are set for modest gains at the open of trading Thursday amid a rebound overnight for the dollar and ahead of a European Central Bank rate decision. European stocks are set for modest gains at the open of trading Thursday amid a rebound overnight for the U.S. dollar and ahead of the first rate-setting meeting of the year for the European Central Bank.
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A street sign is seen in front of the New York Stock Exchange October 16, 2007. U.S. stocks fell on Tuesday after disappointing earnings and outlooks from financial services companies suggested problems from the credit squeeze will be prolonged.
Citadel Trader Who Built CDS Business Exiting After a Year
Tian Zeng is leaving Citadel Securities LLC a year after leading the company’s foray into the credit-default swaps trading business, people familiar with the matter said. The hiring of Zeng from Citigroup Inc. in December 2015 was a key step in Citadel Securities’ push to make markets in credit derivatives after an eight-year campaign to loosen Wall Street dealers’ stranglehold.
Citadel Trader Who Built CDS Business Exiting After a Year
Tian Zeng is leaving Citadel Securities LLC a year after leading the company’s foray into the credit-default swaps trading business, people familiar with the matter said. The hiring of Zeng from Citigroup Inc. in December 2015 was a key step in Citadel Securities’ push to make markets in credit derivatives after an eight-year campaign to loosen Wall Street dealers’ stranglehold.
Deutsche Bank Is Said to Scrap Senior Bankers’ Bonuses for 2016
Deutsche Bank AG will tell senior employees as soon as this week that they probably won’t get a bonus for 2016 because of the lender’s performance last year, according to a person familiar with the decision. The decision to withhold bonuses for management board members and most top bankers across the firm was taken at the end of last year and isn’t directly related to the cost of settling legal disputes, said the person, who asked not to be identified discussing internal matters.
Ex-Deutsche Bank Forex Trader Faces Jail for Defrauding Firm
A former Deutsche Bank AG foreign-exchange trader faces a possible prison sentence after a Singapore court convicted him of defrauding the company by making false trades. Toh Hway Khuan, 51, pleaded guilty on Wednesday to 13 charges relating to using the bank’s account to get preferential rates on the dollar in November 2009.
Real estate markets across Miami-Dade County steady
Brexit and the US elections were among factors that made 2016 a stable and steady – but not record-breaking – year in real estate markets across Miami-Dade County, observers say. “It was a relatively slow year,” with some companies waiting until year’s end to make major decisions, said Marc Miller, research manager for JLL.
Deutsche Bank May Withhold 90 Percent of Bonuses, NY Post Says
Deutsche Bank AG may withhold bonuses from as many as 90 percent of its bankers and traders, the New York Post reported, citing unidentified people briefed on internal talks. Only the top 10 percent are expected to receive a bonus for 2016, and those payments may be spread out over the next five years, the newspaper said.
Why Investors Should Be Happy With Bank of America’s Q4 Earnings
Bank of America still has a lot of ground to make up, but its latest earnings report confirms it’s on the right track. Image source: iStock/Thinkstock.
Wells Fargo Reports a Rare Disappointing Quarter
Net income at the nation’s third biggest bank by assets fell in the fourth quarter of last year to $4.9 billion, down from $5.2 billion in the year-ago period. Wells Fargo’s downbeat earnings come amid a swell in profits at other banks.
U.S. Banks to Stay in Fashion as Earnings Kick Off
U.S. bank stocks will stay in favor with investors as long as earnings reports in the coming week show an improving profit outlook while investors wait to see if U.S. President-elect Donald Trump lives up to his campaign promises. Wells Fargo & Co.
Inauguration Week: All Eyes on Central Banks
Leading up to Donald Trump’s swearing-in ceremony on Jan. 20, the momentum on Wall Street belongs to financial services. As President-elect Donald Trump mounts the inaugural podium on Jan. 20, resurgent central banks already occupy center stage.
Inauguration Week: All Eyes on Central Banks
Leading up to Donald Trump’s swearing-in ceremony on Jan. 20, the momentum on Wall Street belongs to financial services. As President-elect Donald Trump mounts the inaugural podium on Jan. 20, resurgent central banks already occupy center stage.
How to Trade Wells Fargo, Pandora and More of the Week’s Most Active Stocks
Put down the 10-K filings and the stock screeners. It’s time to take a break from the traditional methods of generating investment ideas.
How to Trade Wells Fargo, Pandora and More of the Week’s Most Active Stocks
Put down the 10-K filings and the stock screeners. It’s time to take a break from the traditional methods of generating investment ideas.
Rain at J.P. Morgan Health Meeting Is a Tonic for Hotel Revenue
At this year’s annual meeting of health-care executives and investors in San Francisco, an industry criticized over the high prices of its drugs got a taste of its own medicine. The four-day J.P. Morgan Healthcare Conference, known more for speed-date meetings and deals than actual presentations, this year packed thousands of investors, bankers and executives into the rain-soaked Union Square neighborhood.
Wells Fargo Plans to Close More Than 400 Branches Through 2018
Wells Fargo & Co. plans to close more than 400 branches in the next two years as the lender seeks to trim about $2 billion in costs by the end of 2018, Chief Financial Officer John Shrewsberry said.
Wells Fargo CFO Shrewsberry: ‘I Wouldn’t Expect a Pivot Right Now’
Wells Fargo missed on the top and bottom line for the 2016 fourth quarter as it deals with the fallout over its accounts scandal. Wells Fargo investors are going to have to be patient as the bank implements its new compensation structure that is more customer focused rather than sales focused, CFO John Shrewsberry said on CNBC’s “Closing Bell” on Friday afternoon.
Bank Earnings Boost S&P and Nasdaq, Retailers Weigh on Dow
The S&P 500 and Nasdaq were higher in late morning trading on Friday as strong earnings from large U.S. lenders bode well for the rest of the earnings season. The Dow’s gains were comparatively lesser, held back by a drop in consumer stocks after a report showed U.S. retail sales and core retail sales increased less than expected in December.
Wells Fargo profit falls after fraudulent account scandal
Wells Fargo said Friday its profit fell 5 percent in the first full quarter after regulators said that bank employees opened millions of customer accounts fraudulently to meet sales goals. The scandal has kept new customers away, with the bank reporting that new account openings plummeted last month.
Bank of America tops 4Q profit forecasts
The results exceeded Wall Street expectations. The average estimate of 11 analysts surveyed by Zacks Investment Research was for earnings of 38 cents per share.
Bank of America Kicks Off Bank Earnings With a Profit Beat
Bank of America said its fourth-quarter profit rose 43% as its trading desk benefited from the uncertainty caused by Donald Trump’s surprise election. Quarterly profit at the Charlotte, N.C.-based bank grew to $4.7 billion, from $3.28 billion a year earlier.
Futures Rise on Hopes of Higher Earnings; Asia Mixed
Futures for U.S. markets are higher ahead of earnings season while Asia continues to feel the hangover from the Trump press conference. Futures for U.S. markets pointed higher late Thursday as investors await info on holiday retail sales and the first full day of earnings as a raft of industrial shares trot out their fourth-quarter performance.
DIARY-Top Economic Events to Feb. 22
Canadian Finance Minister Bill Morneau will meet with Canada’s leading private sector economists to gather their views on the Canadian and world economies – 1500 GMT. WASHINGTON – Federal Reserve Board Chair Janet Yellen will host a townhall meeting with educators from across the Country United States – 0000 GMT.