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Banks

Reuters | Equities.com |

The four largest U.S. consumer banks posted blockbuster second-quarter results this week, after pandemic loan losses failed to materialize and the U.S. economy began roaring back to life.

Wells Fargo & Co, Bank of America Corp, Citigroup Inc and JPMorgan Chase & Co posted a combined $33 billion in profits, buoyed by the release of $9 billion in reserves they had put aside last year to absorb feared pandemic losses.


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President Joe Biden's planned executive order to promote greater U.S. competition will target bank mergers by pushing the Federal Reserve and the Department of Justice to update merger guidelines and increase scrutiny of deals, according to a source familiar with the matter.

It will also ask the Consumer Financial Protection Bureau (CFPB) to issue rules giving consumers full control of their financial data to make it easier for customers to switch banks, the source said.


Kimberly Redmond | Equities.com |

UBS Group AG is planning to let up to two-thirds of its employees permanently split their time between working remotely and being in the office.

A spokesperson for the Zurich-based lender told CNBC on Monday it was “committed” to offering its 72,000 employees globally “the flexibility for hybrid working where role, tasks and location allow.”


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Citigroup Inc’s finance chief Mark Mason on Tuesday predicted a strong economic recovery this year as more people get vaccinated, but cautioned that may not translate into better profits for the bank because of a slowdown in institutional businesses and higher expenses.

"It's been a consumer-led recovery," Mason said at a virtual conference hosted by Morgan Stanley, particularly "driven by the significant take up that we've seen as it relates to vaccinations."


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Bank of America plans to raise its minimum wage for U.S. workers to $25 an hour by 2025, the latest among major firms promising to pay employees more after a year of pandemic risks and government subsidies that fueled conversations on whether companies pay their workers enough.

Bank of America's announcement on Tuesday went further than other companies with large U.S. workforces in the retail space. The figure was higher than at competitors, and the second-largest U.S. bank is also requiring its vendors to set a minimum wage of $15 an hour.


Reuters | Equities.com |

Société Générale on Thursday recorded a higher than expected first quarter profit as its equities unit rebounded from an earnings wipeout to post its best performance in six years.

France's third-largest listed bank, which tumbled in 2020 to its first full-year loss for a decade as the COVID-19 pandemic rattled its businesses, posted a 814 million euros ($977.37 million) net profit in the quarter against a 326 million euros loss a year ago.


Reuters | Equities.com |

HSBC Holdings PLC beat quarterly profit forecasts and released $400 million it had set aside to cover bad loans caused by the pandemic, as rapid vaccine rollouts in the United States and Britain raise hopes for an economic recovery.

Europe's biggest bank by assets cautioned, however, that high levels of uncertainty meant it was keeping the bulk of the $3 billion it set aside a year ago to cover potential bad debts.


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Nomura Holdings Inc reported on Tuesday a $2.3 billion hit from the collapse of U.S. investment fund Archegos, causing it to log its biggest quarterly net loss since the 2008 global financial crisis.

Japan's biggest brokerage and investment bank said while it expects to book a further $570 million in charges related to Archegos this financial year and would be beefing up its risk controls, it saw the debacle as an isolated incident.


Kimberly Redmond | Equities.com |

Chief executive officers from the six largest US banks will testify in back-to-back hearings next month before the Senate Banking and House Financial Services Committees, lawmakers announced Thursday.

According to the announcement, CEOs of JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Morgan Stanley and Goldman Sachs will appear for virtual hearings with the Banking Committee on May 26 and the Financial Services on May 27. 


Reuters | Equities.com |

Wells Fargo & Co beat Wall Street profit expectations on Wednesday as it reduced bad loan provisions and reined-in costs, signaling the bank may finally be emerging from a sales practices scandal that has dogged it for nearly five years.

Profits at the country’s fourth-largest lender rebounded to nearly $5 billion in the first quarter of 2021 as the improved economic outlook allowed it to cut its cushion for losses on pandemic-hit loans by $1.6 billion, and as it got a grip on costs relating to fixing its product mis-selling scandals.