Challenger banks: More than just a fancy app? April 19, 2016 It was hard to go a week last year without hearing another story about a startup threatening the existence of the banks. Challenger banks in particular popped up left, right and centre, looking to take a swipe at the established players. Many of them are mobile-only banks, allowing customers to carry out traditional banking tasks via [...]
Morgan Stanley share price rises despite 54 per cent slump in profit April 18, 2016 Morgan Stanley, the latest US bank to beat very low expectations in the first quarter, has posted a 54.4 per cent drop in profit after wild market swings earlier this year dragged on trading and investment banking. Earnings per share (EPS) fell to 55 cents in the quarter ended 31 March, from $1.18 per share a year earlier. Analysts had on average [...]
“Challenger broker” Zeus Capital hails bucking the investment banking trend with 2016 figures April 18, 2016 Boutique investment bank Zeus Capital described itself as a "challenger broker" as it released results showing it has "bucked the trend". In the year to 31 March 2016, Zeus said it had completed 23 transactions, raising £1.5bn – up from around £500m in the previous year – across the public and private markets. Its revenue for the period was [...]
HSBC’s chief executive Stuart Gulliver standing down in two years, with Axa’s Henri de Castries hotly tipped as new chairman April 17, 2016 Stuart Gulliver, the chief executive of banking giant HSBC, looks set to stand down from his role in two years. The bank revealed in a letter to its shareholders last month that the new group chairman, who will be joining once current chairman Douglas Flint steps down, will be heading up the search for a new [...]
Are global banks in trouble? These three charts show which lenders are suffering the most April 15, 2016 Better than expected results for Citi Group rounded off a week during which banks in the US reported slumped results, while the IMF and consultancy KPMG questioned the financial recovery. “Expectations were for $1.05. We got $1.10,” said Joshua Mahony, Market Analyst at IG, a global leader in online trading of the per share value. “People [...]
Citigroup profits plunge 27 per cent in first quarter, but earnings per share and revenue beat expectations April 15, 2016 Citigroup's profits and revenue plunged in the first quarter of 2016, but the bank performed ahead of expectations. The figures The US bank reported a profit of $3.5bn (£2.5bn), down from $4.8bn in the first quarter of 2015. The company's revenue during the period was $17.56bn, down 11 per cent from $19.7bn. Its investment banking revenues for [...]
Scandals like the Panama Papers report have made people demand more transparency from their banks April 14, 2016 A stream of seemingly constant scandals has made people demand more from their banks, a survey released today has found. The poll by Triodos Bank discovered that the news agenda in 2015, which included the conviction of Tom Hayes for Libor-related offences and the publication of a report into the HBOS collapse, had led to 22 per [...]
Libor scandal: Financial Conduct Authority pushes to ban former UBS trader over Libor-rigging accusations April 14, 2016 A former UBS trader is facing a ban from working in financial services after the Financial Conduct Authority (FCA) issued a decision notice today claiming that he was not a "fit and proper person". The FCA alleges that Arif Hussein played a role in manipulating Libor while working as head of UBS’s GBP Rates Desk. The FCA claims that Hussein was [...]
Wells Fargo has beaten expectations sending its share price higher, though profit fell seven per cent April 14, 2016 US bank Wells Fargo has reported that its profits dropped by seven per cent over the last three months compared to last year. The bank, the third-largest bank by assets in the US, posted profits of $5.5bn (£3.9bn), compared with $5.8bn in first quarter 2015. Revenue tracked upwards however, rising four per cent to $22.2bn. JP Morgan and [...]
EU referendum: Lloyds Banking Group warns of Brexit creating “economic uncertainty” April 14, 2016 Lloyds is the latest bank to issue a warning over Brexit. The banking group warned of economic uncertainty and short term volatility, while the long term impact was unclear. The group which runs Lloyds, Halifax, Bank of Scotland and Scottish Widows and is the UK's biggest retail bank with 30m customers said in a statement: "The board [...]