Writedowns hit BNY Mellon July 22, 2009 BANK of New York Mellon (BNY Mellon) saw its second-quarter profit fall by 43 per cent, due to charges on the state aid it received from the US government, coupled with losses in securities and writedowns relating to the housing market. The New York-based custody bank said net income sank to $176m (£107m), or $0.15 [...]
Record profit can’t ease Wells Fargo bad loan fear July 22, 2009 WELLS Fargo, the largest mortgage lender in the US, reported record second-quarter net income yesterday but gave a bleak assessment of its rising bad loans problem. Net income for the three months to the end of June rocketed 81 per cent to a record quarterly profit of $2.58bn (£1.57bn), or $0.57 a share, compared to [...]
US Bancorp beats forecasts but credit losses mirror US economic troubles July 22, 2009 US BANCORP posted a 76 per cent year-on-year decline in second quarter profit yesterday, as it suffered mounting credit losses amid ongoing deterioration in the US economy. Second-quarter net income fell to $221m (£134m), or $0.12 a share, compared to $926m, or $0.53, a year earlier, despite a nine per cent rise in revenue to [...]
KeyCorp underperforms and turns to cost cutting July 22, 2009 REGIONAL US bank KeyCorp fell to a worse-than-expected second-quarter loss of $390m, (£237m) or $0.68 per share, yesterday. The figures represent a turnaround from the $1.13bn, or $2.70, lost in the same quarter of last year, but still underperformed an analysts’ consensus of a $0.41 per share loss. Chief executive Henry Meyer said the results [...]
Goldman is finally free from Tarp July 22, 2009 GOLDMAN Sachs has finally escaped the US government’s Troubled Asset Relief Programme (Tarp), after redeeming stock warrants issued to the Treasury. The bank, which booked record profits of $3.44bn (£2.1bn) in the second quarter, said it had repaid $1.1bn to the government for warrants issued when the Treasury ploughed $10bn into the bank via Tarp. [...]
Drug giants are bullish on future July 22, 2009 GlaxoSmithKline takes orders for 195m doses of its swine flu vaccine… PHARMA giant GlaxoSmithKline (GSK) has taken 195m orders for its swine flu vaccine and is currently in talks with over 50 countries over stockpiling the drug, it said yesterday as it unveiled second quarter results. The firm will also ramp up production of its [...]
ANALYST VIEWS: WHAT’S ON THE HORIZON FOR GLAXOSMITHKLINE? July 22, 2009 SAVVAS NEOPHYTOU PANMURE GORDONWe are encouraged by good gross margins and strong revenue growth across GlaxoSmithKline’s portfolio, particularly in vaccines. GSK is building towards a diversified business model that will be attractive to risk-averse investors and, although we are not fans of conglomerates, we remain buyers. JAMES KNIGHT COLLINS STEWARTPharma companies have a proven ability [...]
The FSA’s enforcement Queen says she will not stop fighting big cases July 21, 2009 IT is never easy to focus on the task at hand when the future of your organisation is in doubt – so even the Financial Services Authority’s (FSA) sternest critics should spare a thought for the beleaguered watchdog’s staff, who are all wondering what will happen to them over the next 12 months. But many [...]
NO SIGN OF A TRUCE IN BATTLE OF BROKERS July 21, 2009 THE long-standing tustle between inter-dealer broker Tullett Prebon and BGC Partners looks set to rumble on well into the autumn. Tullett is currently leading a High Court battle to stop its rival pinching any more of its staff. The pair have been at loggerheads since last year, when former Tullett chief operating officer Tony Verrier [...]
DTZ slashes payout after dismal year July 21, 2009 TROUBLED commercial property agent DTZ yesterday announced it was axing its dividend after the economic turmoil sent it plunging into the red. The London-based group reported a £36.1m pre-tax loss for the full year to 30 April compared with a £20.1m profit the year before. The slump in commercial property values and transactions meant the [...]