[ad_1]
Banco Santander CFO José García Cantera discusses the bank’s results, saying performance was “very positive” across global businesses.
03:31
Wed, Jul 24 20246:19 AM EDT
[ad_2]
Tag: Earnings
-
Spain’s Santander posts 20% hike in net profit as retail business shines
[ad_1]
Banco Santander posted a 20% year-on-year hike in second-quarter net profit underpinned by growth in its retail, wealth and consumer activity, after firm revenues and margin management in Europe and Brazil.
The company’s net profit attributable to the parent group came in at 3.207 billion euros ($3.48 million), in line with a consensus from analysts polled by Reuters.
The bank’s ratios also firmed, with its fully-loaded CET1 ratio (a measure of a bank’s solvency) up from 12.3% in the March quarter to 12.5% in the three months to June.
Its return-on-tangible-equity ratio — a profit metric — rose to 16.8% in the June quarter, up from 14.9% in the first quarter, and to 15.9% in the first half, up from 14.5% in the same period of last year — prompting the bank to improve its RoTE guidance to above 16% for full-year 2024, from a forecast at 16% previously.
Santander now expects revenues will hit high-single digit growth, from a previously forecast mid-single digit expansion.
Other highlights included:
- Pre-tax profit: 4.925 billion euros in the second quarter, versus 4.258 billion euros in the same period of last year.
- Net interest income: 11.47 billion euros in the June quarter, compared with 10.52 billion euros in the same three-month stretch of last year — but below a 11.96% forecast for the second quarter of 2024 from analysts polled by Reuters.
Discussing income, the bank flagged a “negative impact from hyperinflation adjustment” in Argentina, where President Javier Milei has made a priority of attempting to tame price hikes.
“In the context of a volatile geopolitical environment, we are confident that we will deliver on the more ambitious targets set out today thanks to our diversification across businesses and markets, the strength of our model, and the quality of our team – to whom I am again extremely grateful,” Santander Executive Chair Ana Botin said in a statement.
[ad_2]
-
Deutsche Bank shares drop 8% after lender snaps 15-quarter profit streak
[ad_1]
Deutsche Bank on Wednesday snapped a 15-quarter profit streak with a narrower-than-expected loss, as it made a provision for an ongoing lawsuit over its Postbank division and confirmed it would not make a second share buyback this year.
Shares provisionally ended the session down more than 8%, despite analysts characterizing the results as broadly solid.
Deutsche Bank share price.
Net loss attributable to shareholders was 143 million euros ($155.1 million), against an LSEG poll of analysts which had predicted a loss of 145 million euros.
Germany’s biggest bank had previously flagged it would take a hit in the quarter on the back of the Postbank provision, which it confirmed Wednesday would amount to 1.3 billion euros. The long-running lawsuit by investors alleges Deutsche Bank underpaid to take over the retail banking giant in 2010.
The bank said it remained on track with its distribution commitment to shareholders, which it has previously stated is for a sum in excess of 8 billion euros in share buybacks across the 2021-2025 financial year period.
“On the share repurchase side…unfortunately, prudently we had to step back from the idea of a second repurchase this year, what our focus is now is building excess capital through the back of the year,” Chief Financial Officer James von Moltke told CNBC’s Caroline Roth in a Wednesday interview.
The lender reported net revenue was up 2% to 7.6 billion euros in the second quarter, while efficiency savings reached 1.5 billion euros.
Revenue reports varied across the business. At its investment bank division, a recent area of strength, they jumped 10% year-on-year to 2.6 billion euros — but fell 3% to 2.1 billion euros in fixed income and currencies. Revenue in corporate banking was nearly flat at 1.9 billion euros.
Other highlights included:
- Profit before tax excluding the Postbank provision was 1.7 billion euros, up from 1.4 billion euros in the second quarter of 2023.
- Provision for credit losses was 476 million euros, up from 401 million euros a year ago.
- CET 1 capital ratio, a measure of bank solvency, nudged up to 13.5% from 13.4% in the first quarter of the year.
In a Wednesday note, Citi analysts called it a “solid quarter,” with some divisions above consensus, net interest margins fading at a slower pace than initially expected and a largely-unchanged outlook for 2024 and 2025.
RBC analysts labelled the results “good,” particularly in investment banking, but said loan losses were higher than expected.
Deutsche Bank’s Von Moltke told CNBC he saw several positive drivers for the second half, including in net interest income — which fell 2% in corporate banking the second quarter, according to the Wednesday earnings.
“We had called earlier this year on the net interest income side for a downdraft relative to [20]23, we actually think the banking book segments may be stable, essentially flat to last year, and that’s actually very encouraging, reflecting lower funding costs, better spreads on both the deposit and the loan side. Still more sluggish loan growth than we’d like to see, but overall an encouraging picture,” Von Moltke said.
“On the financial market and corporate finance side, we see the momentum there coming through that we’d hoped to see,” he added, pointing to revenue doubling in its origination and advisory business year-on-year.
The second-quarter result maintains a recent trend of earnings beats for the lender. Back in April, the bank posted 10% higher profit, logging its best quarterly result for the metric since 2013.
It also comes on a busy day for European bank earnings, with Italy’s UniCredit maintaining a 14-quarter profit streak as Spain’s Santander reported a 20% leap in net profit.
— CNBC’s Ganesh Rao contributed to this story.
[ad_2]
-
KeyBank spends $800M on tech annually | Bank Automation News
[ad_1]
KeyBank spends $800 million annually on technology and expects expenses to grow in 2025 as it continues to invest in overall operations. “The reason we’ve been able to invest is we took $400 million of expenses out last year just for the purpose of being able to invest in people and technology and the […]
[ad_2]
Whitney McDonald
Source link -
70% of Citizens applications will be cloud-based by 2024 | Bank Automation News
[ad_1]
Citizens Bank is deploying generative AI and migrating operations to the cloud as part of its cost-saving and efficiency measures. The bank reported that 70% of its applications will be on the cloud by the end of 2024 and it aims to deploy generative AI to increase efficiencies at its call centers. “We have launched […]
[ad_2]
Vaidik Trivedi
Source link -
Ally invests in data, analytics in Q2 | Bank Automation News
[ad_1]
Ally Financial continues to invest in its digital capabilities as clients gravitate toward its online channels. “We’ve made significant investments to modernize our technology platform, including the core operating system of the auto finance business and ongoing investments in data and analytics,” Chief Executive Michael Rhodes said during today’s second-quarter earnings call. Ally’s all-digital user […]
[ad_2]
Whitney McDonald
Source link -
Our 5 top-performing stocks since June’s monthly meeting (only one is Big Tech)
[ad_1]
A trader works, as a screen broadcasts a news conference by U.S. Federal Reserve Chair Jerome Powell following the Fed rate announcement, on the floor of the New York Stock Exchange in New York City, U.S., June 12, 2024.
Brendan Mcdermid | Reuters
It’s been another great run for stocks since the Club’s last monthly meeting in June.
[ad_2]
-
Morgan Stanley beats estimates on better-than-expected trading and investment banking
[ad_1]
CNBC's Leslie Picker joins 'Squawk Box' to report on the company's quarterly earnings results.
[ad_2]
-
Morgan Stanley tops estimates on stronger-than-expected trading and investment banking
[ad_1]
Ted Pick, CEO Morgan Stanley, speaking on CNBC’s Squawk Box at the World Economic Forum Annual Meeting in Davos, Switzerland on Jan. 18th, 2024.
Adam Galici | CNBC
Morgan Stanley said second-quarter profit and revenue topped analysts’ estimates on stronger-than-expected trading and investment banking results.
Here’s what the company reported:
- Earnings: $1.82 a share vs. $1.65 a share LSEG estimate
- Revenue: $15.02 billion vs. $14.3 billion estimate
The bank said profit surged 41% from the year-earlier period to $3.08 billion, or $1.82 per share, helped by a rebound in Wall Street activity. Revenue rose 12% to $15.02 billion.
Shares of the bank had declined earlier in the session after the bank’s wealth management division missed estimates on a decline in interest income. They were up less than 1% on Tuesday.
Wealth management revenue rose 2% to $6.79 billion, below the $6.88 billion estimate, and interest income plunged 17% from a year earlier to $1.79 billion.
Morgan Stanley said that’s because its rich clients were continuing to shift cash into higher-yielding assets, thanks to the rate environment, resulting in lower deposit levels.
Morgan Stanley investors value the more steady nature of the wealth management business versus the less predictable nature of investment banking and trading, and they will want to hear more about expectations for the business going forward.
Still, the bank benefited from its Wall Street-centric business model in the quarter, as a rebound in trading and investment banking helped the bank’s institutional securities division earn more revenue than its wealth management division, flipping the usual dynamic.
Equity trading generated an 18% jump in revenue to $3.02 billion, exceeding the StreetAccount estimate by about $330 million. Fixed income trading revenue rose 16% to $1.99 billion, topping the estimate by $130 million.
Investment banking revenue surged 51% to $1.62 billion, exceeding the estimate by $220 million, on rising fixed income underwriting activity. Morgan Stanley said that was primarily driven by non-investment-grade companies raising debt.
“The firm delivered another strong quarter in an improving capital markets environment,” CEO Ted Pick said in the release. “We continue to execute on our strategy and remain well positioned to deliver growth and long-term value for our shareholders.”
Last week, JPMorgan Chase, Wells Fargo and Citigroup each topped expectations for revenue and profit, a streak continued by Goldman Sachs on Monday, helped by a rebound in Wall Street activity.
[ad_2]
-
Bank of America shares jump 5% after saying net interest income rebound is coming
[ad_1]
Bank of America on Tuesday said second-quarter revenue and profit topped expectations on rising investment banking and asset management fees.
Here’s what the company reported:
- Earnings: 83 cents a share vs. 80 cents a share LSEG estimate
- Revenue: $25.54 billion vs. $25.22 billion estimate
The bank said profit slipped 6.9% from the year earlier period to $6.9 billion, or 83 cents a share, as the company’s net interest income declined amid higher interest rates. Revenue climbed less than 1% to $25.54 billion.
The firm was helped by a 29% increase in investment banking fees to $1.56 billion, edging out the $1.51 billion StreetAccount estimate. Asset management fees rose 14% to $3.37 billion, buoyed by higher stock market values, helping the firm’s wealth management division post a 6.3% increase in revenue to $5.57 billion, essentially matching the estimate.
Net interest income slipped 3% to $13.86 billion, also matching the StreetAccount estimate.
But new guidance on the measure, known as NII, gave investors confidence that a turnaround is in the making. NII is one of the main ways that banks earn money.
The measure, which is the difference between what a bank earns on loans and what it pays depositors for their savings, will rise to about $14.5 billion in the fourth quarter of this year, Bank of America said in a slide presentation.
That confirms what executives previously told investors, which is that net interest income would probably bottom in the second quarter.
Wells Fargo shares fell on Friday when it posted disappointing NII figures, showing how much investors are fixated on the metric.
Shares of Bank of America climbed 5.4%, aided by the NII guidance.
Last week, JPMorgan Chase, Wells Fargo and Citigroup each topped expectations for revenue and profit, a streak continued by Goldman Sachs on Monday, helped by a rebound in Wall Street activity.
[ad_2]
-
Goldman optimistic about AI financing | Bank Automation News
[ad_1]
Goldman Sachs is recognizing opportunities for AI-related financing activities as companies continue to adopt the technology. “Recently, our board of directors spent a week in Silicon Valley, where we spoke with the CEOs of many of the leading institutions at the cutting edge of technology and AI, and we all left with a sense of […]
[ad_2]
Vaidik Trivedi
Source link -
BNY unifies tech solutions in Q2 | Bank Automation News
[ad_1]
BNY is unifying products and solutions on its platform to ensure its investment capabilities are readily available to clients in one place. With BNY’s capabilities all in one place, the financial institution has created a more streamlined and cost-effective tool for wealth advisers that brings together Pershing, investment management solutions and BNY Mellon Advisors, […]
[ad_2]
Whitney McDonald
Source link -
Goldman Sachs is set to report second-quarter earnings — here’s what Wall Street expects
[ad_1]
David Solomon, Goldman Sachs interview with David Faber, September 7, 2023.
CNBC
Goldman Sachs is scheduled to report second-quarter earnings before the opening bell Monday.
Here’s what Wall Street expects:
- Earnings: $8.34 per share, according to LSEG
- Revenue: $12.46 billion, according to LSEG
- Trading Revenue: Fixed Income of $2.96 billion, Equities of $3.17 billion, per StreetAccount
- Investing Banking Revenue: $1.80 billion, according to StreetAccount
Expectations have been set high for Goldman Sachs, with Wall Street businesses in the midst of a rebound after a dismal 2023.
That’s because out of the six biggest U.S. banks, Goldman is the most reliant on investment banking and trading to generate revenue.
Another focal point for the quarter will be in asset and wealth management, areas that Goldman CEO David Solomon has wagered can be a growth engine for the bank.
On Friday, rivals JPMorgan Chase and Citigroup both topped expectations thanks to surging investment banking fees and better-than-expected equities trading results.
Bank of America and Morgan Stanley report results on Tuesday.
This story is developing. Please check back for updates.
[ad_2]
-
Wells Fargo invests in branch tech | Bank Automation News
[ad_1]
Wells Fargo is improving its customer experience with investments in branch technology and enhanced self-service options. “We continue to optimize and invest in our branch network,” Wells Fargo Chief Executive Charlie Scharf said during today’s second-quarter earnings call. “We are accelerating our efforts to refurbish our branches, completing 296 during the first half of […]
[ad_2]
Whitney McDonald
Source link -
Citi stays course on tech modernization, simplification | Bank Automation News
[ad_1]
Citigroup’s multiyear modernization strategy saw progress in the second quarter as the bank’s tech investments proved more necessary after the Federal Reserve Board penalized the bank this week. “We have made meaningful progress in executing our transformation and simplifying our multiyear undertaking,” Chief Executive Jane Fraser said during the $2.4 trillion bank’s earnings call […]
[ad_2]
Whitney McDonald
Source link -
Citigroup tops expectations for profit and revenue on strong Wall Street results
[ad_1]
CNBC's Leslie Picker joins 'Squawk Box' to report on the bank's quarterly earnings results.
[ad_2]
-
Wells Fargo shares tumble after net interest income falls short of estimates
[ad_1]
CNBC's Leslie Picker joins 'Squawk Box' to report on the bank's quarterly earnings results.
[ad_2]
-
Citigroup tops expectations for profit and revenue on strong Wall Street results
[ad_1]
Jane Fraser, CEO of Citi, speaks during the Milken Institute Global Conference in Beverly Hills, California, on May 1, 2023.
Patrick T. Fallon | AFP | Getty Images
Citigroup on Friday posted second-quarter results that topped expectations for profit and revenue on a rebound in Wall Street activity.
Here’s what the company reported:
- Earnings: $1.52 a share vs. $1.39 a share expected, according to LSEG
- Revenue: $20.14 billion vs. $20.07 billion expected
The bank said net income jumped 10% from a year earlier to $3.22 billion, or $1.52 a share. Revenue rose 4% to $20.14 billion.
Equities trading revenue rose 37% to $1.5 billion, driven by strength in derivatives and a rise in hedge fund balances, roughly $300 million more than the StreetAccount estimate.
Fixed income revenue dipped 3% to $3.6 billion, essentially matching analysts’ expectations, on lower activity in rates and currency markets.
Investment banking revenue surged 60% to $853 million, driven by strong issuance of investment-grade bonds and a rebound in IPO and merger activity from low levels in 2023.
Shares of the bank fell nearly 2%.
“Our results show the progress we are making in executing our strategy and the benefit of our diversified business model,” Citigroup CEO Jane Fraser said in the release. “Markets had a strong finish to the quarter leading to better performance than we had anticipated.”
Citigroup was just this week rebuked for failing to fix its regulatory shortfalls.
Last year, Fraser announced plans to simplify the management structure and reduce costs at the third-biggest U.S. bank by assets. But earnings will take a backseat if Citigroup cannot appease regulators’ concerns about its data and risk management.
JPMorgan Chase announced results earlier Friday, while Goldman Sachs, Bank of America and Morgan Stanley report next week.
Correction: This article has been updated to correct that Citigroup reported revenue of $20.14 billion for the second quarter. A previous version misstated the figure due to a rounding error.
[ad_2]
