US banks trading income declines

Bond Portfolios Give US Banks Heavy Losses: From JPMorgan’s $7.4 Billion to BofA’s $3.4 Billion

Fitch explains that for large US banks “the sharp rise in interest rates across the curve led to unrealised losses in AFS (Available-for-Sale) securities portfolios with an estimated negative effect on CET1 ratios of 20-110bp”. Specifically, according to Bloomberg, JPMorgan reported latent losses of about USD 7.4 billion on a total of USD 313 billion of Treasuries and other bonds in its available-for-sale portfolio in the Q1’22 results announced last…

banks general 777x400

Banking: From Confusion To Perplexity. A Question Of Transparency

Aristóbulo de Juan | The Spanish system lends itself to great confusion. It is therefore difficult to diagnose. This situation has been dragging on since the recent real estate bubble and the poor handling of the ensuing crisis. Perhaps as a consequence of the doctrine of deregulation. But this situation continues to be favoured by the existence of an ineffective regulatory framework, based on the elusive principle that it is…

climate change north pole

What Banks Could Do With Their Lending To Reverse Climate Change

Andrew Fraser (Aberdeen Standards) | They talk, but they don’t do,’ this is how the Queen expressed her frustration with world leaders on the eve of COP26. The same accusation could be levelled at the world’s major banks. They finance the world’s largest companies and have a huge role to play in halting climate change. But the opportunity has yet to be fully grasped. Banks could take a major part…

bank generico

“Without Numbers You Will Perish”

Aristóbulo de Juan | Visiting the basilica of San Isidoro in León some time ago, I came across a series of tombstones with their inscriptions. One of them carried this statement: “Without numbers you will perish”. It stuck with me. Now, amid the pandemic and its impact on the economy, on banks and on the tolerance of all regulators, we live in a time of great confusion. Banks in good…

bank spain

Spanish Banks’ Non-Performing Loans Fall To 4.4%, The Lowest Since 2009

Non-performing loans granted by credit institutions to companies and individuals fell to 4.4% in June, compared with 4.55% in May and 4.67% a year earlier, according to provisional data from the Bank of Spain. This is its lowest level since April 2009, when the NPL ratio began its climb – which reached 13% in 2014 – as a result of the financial crisis. Total credit to the private sector increased…

NYSE bull

Global Financials: Upgrade From Neutral To Overweight

Patrik Lang (Head Equities & Global Equity Strategy, Julius Baer) | Global financials typically outperform when purchasing managers’ indices and bond yields rise. Growing scepticism with regard to the negative interest rates and increasing chances for the beginning of tangible fiscal easing are also potential positives.

Bankia earnings 23% down in 2019

Bankia Earnings 23% Down In 2019

Bankia’s results were much better than market expectations, however, there are some uncertainties about its share price. The bank has achieved a profit of € 542 million, 23% less, with experts expecting a greater adjustment due to the bank’s efforts to get rid of unproductive assets.

Italian banks results

Looming Banking Crisis in Italy Casts Another Shadow on Eurozone

Peter Lundgreen via Caixin| What should be deeply worrying about the growing banking crisis in Italy is the origin of the non-performing loans. One significant sector is retail and wholesale, meaning it’s a widespread problem. A severe banking crisis is a shock for any economy and will, in many cases, hamper economic growth. This is the risk that Italy and the Eurozone are facing.