Latest news with #Banking
Yahoo
17 hours ago
- Business
- Yahoo
Barclays profit surges as investment banking offsets £1.1bn of bad debts
Banking giant Barclays has revealed half-year profits jumped by nearly a quarter as an investment banking boost helped offset more than £1 billion set aside for bad debts. The high street lender reported a 23% rise in pre-tax profits to £5.2 billion for the six months to June 30. It booked credit impairment charges of £1.1 billion, up from £897 million a year earlier, after putting by another £469 million in the second quarter. The bank said the rise was largely due to its takeover of Tesco Bank and a more uncertain economic outlook, especially in the US. Its results were better than expected for the second quarter, with profits up 28% to £2.5 billion thanks to forecast beating revenues in its investment banking arm amid market volatility. Group chief executive CS Venkatakrishnan, who is also known as Venkat, said: 'We remain on track to achieve the objectives of our three-year plan, delivering structurally higher and more stable returns for our investors.' Barclays unveiled more returns for investors, with plans for another £1 billion in share buybacks, and said it has cut around £350 million of costs out of the £500 million in savings planned for 2025.
Yahoo
18 hours ago
- Business
- Yahoo
Barclays profit surges as investment banking offsets £1.1bn of bad debts
Banking giant Barclays has revealed half-year profits jumped by nearly a quarter as an investment banking boost helped offset more than £1 billion set aside for bad debts. The high street lender reported a 23% rise in pre-tax profits to £5.2 billion for the six months to June 30. It booked credit impairment charges of £1.1 billion, up from £897 million a year earlier, after putting by another £469 million in the second quarter. The bank said the rise was largely due to its takeover of Tesco Bank and a more uncertain economic outlook, especially in the US. Its results were better than expected for the second quarter, with profits up 28% to £2.5 billion thanks to forecast beating revenues in its investment banking arm amid market volatility. Group chief executive CS Venkatakrishnan, who is also known as Venkat, said: 'We remain on track to achieve the objectives of our three-year plan, delivering structurally higher and more stable returns for our investors.' Barclays unveiled more returns for investors, with plans for another £1 billion in share buybacks, and said it has cut around £350 million of costs out of the £500 million in savings planned for 2025. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Independent
18 hours ago
- Business
- The Independent
Barclays profit surges as investment banking offsets £1.1bn of bad debts
Banking giant Barclays has revealed half-year profits jumped by nearly a quarter as an investment banking boost helped offset more than £1 billion set aside for bad debts. The high street lender reported a 23% rise in pre-tax profits to £5.2 billion for the six months to June 30. It booked credit impairment charges of £1.1 billion, up from £897 million a year earlier, after putting by another £469 million in the second quarter. The bank said the rise was largely due to its takeover of Tesco Bank and a more uncertain economic outlook, especially in the US. Its results were better than expected for the second quarter, with profits up 28% to £2.5 billion thanks to forecast beating revenues in its investment banking arm amid market volatility. Group chief executive CS Venkatakrishnan, who is also known as Venkat, said: 'We remain on track to achieve the objectives of our three-year plan, delivering structurally higher and more stable returns for our investors.' Barclays unveiled more returns for investors, with plans for another £1 billion in share buybacks, and said it has cut around £350 million of costs out of the £500 million in savings planned for 2025.
Globe and Mail
a day ago
- Business
- Globe and Mail
Scotiabank to Announce Third Quarter 2025 Results
TORONTO, July 28, 2025 /CNW/ - Scotiabank will announce its third quarter results on Tuesday, August 26, 2025. Scotiabank Results News Release Financial results will be issued in a press release at approximately 6:00 a.m. ET on Tuesday, August 26, 2025. The results will be available on Scotiabank's Investor Relations Financial Results page
Yahoo
4 days ago
- Business
- Yahoo
Eastern Bankshares Inc (EBC) Q2 2025 Earnings Call Highlights: Strong Growth in Earnings and ...
Operating Earnings: $81.7 million, a 21% increase from the first quarter. Net Interest Margin: Expanded by 21 basis points to 3.59%. Operating Efficiency Ratio: Improved to 50.8%. Operating Return on Average Assets: Increased by 21 basis points to 1.3%. Operating Return on Average Tangible Equity: Increased from 11.7% to 13.6%. Total Assets: $25.5 billion, up 2% from March 31. Tangible Book Value Per Share: Increased 4% to $12.53. Loan Growth: 8% annualized growth this quarter. Deposits Growth: 8% annualized growth. Assets Under Management: Reached a record high of $8.7 billion. Net Income: $100.2 million or $0.50 per diluted share. Operating Earnings Per Share: $0.41, a 21% increase from the previous quarter. Net Interest Income: $202 million, or $206.8 million on an FTE basis, a 7% increase from Q1. Non-Interest Income: $42.9 million, compared to a non-interest loss of $236.1 million in Q1. Non-Interest Expense: $137 million, an increase of $6.8 million from the first quarter. Period End Deposits: $21.2 billion, an increase of $424 million from the prior quarter. Period End Loans: Increased by $385 million, led by commercial lending. Allowance for Loan Losses: $232 million or 127 basis points of total loans. Non-Performing Loans: Decreased to $54.7 million or 30 basis points of total loans. Provision for Loan Losses: $7.6 million, up from $6.6 million in the prior quarter. Full Year Loan Growth Outlook: Raised to 3% to 5%. Full Year Deposit Growth Expectation: Lowered to 0% to 1%. Net Interest Income Guidance: $810 million to $820 million. Operating Fee Income Forecast: Increased to $145 million to $150 million. Operating Non-Interest Expense Forecast: $530 million to $540 million. Operating Tax Rate: Revised to 21% to 22%. Warning! GuruFocus has detected 6 Warning Signs with COLFF. Release Date: July 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Eastern Bankshares Inc (NASDAQ:EBC) reported strong second quarter results with operating earnings of $81.7 million, a 21% increase from the first quarter. Net interest margin expanded by 21 basis points to 3.59%, and the operating efficiency ratio improved to 50.8% due to higher revenues and effective expense management. Total assets reached $25.5 billion, up 2% from March 31, with tangible book value per share increasing by 4% to $12.53. Deposits grew at an annualized rate of 8%, with stable deposit costs, highlighting disciplined pricing and a favorable deposit mix. Credit trends remained positive, with non-performing loans improving for the second consecutive quarter and no net charge-offs reported. Negative Points The competitive market for deposits has intensified, impacting the bank's ability to maintain favorable deposit costs. The bank's outlook for deposit growth has been lowered to 0% to 1%, down from the previous range of 1% to 2%. The net interest income guidance has been modestly reduced due to lower average deposit balances. Non-interest expense increased by $6.8 million from the first quarter, driven by higher operating expenses and merger-related costs. The bank remains cautious about economic uncertainties and evolving policies that could impact customers. Q & A Highlights Q: Is it likely that we'll see more securities portfolio restructurings in coming quarters, excluding any related to the Harbor One deal? A: Possibly. We prioritize organic growth, share buybacks, and balance sheet management, including portfolio repositioning. However, due to the merger and the expiration of our current authorization, restructuring is on the back burner for now. - David Rosato, Chief Financial Officer Q: What drove the significant drop in non-performing loans (NPLs) this quarter? Were there any loan sales involved? A: The drop was due to our managed asset group resolving five credits during the quarter, not through loan sales. - David Rosato, Chief Financial Officer Q: Following the Harbor One deal, is there a plan to expand into new markets like Southern Rhode Island, Connecticut, or New York? A: We plan to build out in the Rhode Island market but have no current plans to expand banking services into Connecticut or New York. We already have a presence in Connecticut for wealth management. - Denis Sheahan, Chief Executive Officer Q: Can you provide more details on the strong CNI growth this quarter? What type of customers were involved, and were these new customers or existing ones utilizing more credit? A: It's a combination of both. We're seeing increased confidence from our customer base and have been adding talent in our commercial lending division. The growth is broad-based across all verticals within CNI. - Denis Sheahan, Chief Executive Officer and David Rosato, Chief Financial Officer Q: What is the outlook for the net interest margin in the back half of the year? A: The margin is expected to be relatively flat. Factors include core deposit growth, the impact of securities repositioning, and competitive deposit markets. Accretion income is unpredictable and could affect the margin. - David Rosato, Chief Financial Officer Q: How should we think about the rabbi trust income and its impact on fee income and expenses for the full year? A: Positive equity markets lead to positive rabbi trust income. If markets remain steady, the rabbi trust income and expense won't significantly impact the financials. - David Rosato, Chief Financial Officer Q: Are any of the $118 million in criticized office loans maturing in the next four quarters? A: Yes, there is one criticized loan maturing within the next year. However, there are no non-performing loans or non-accruing loans in the next year's maturities. - David Rosato, Chief Financial Officer Q: Regarding the FASB's proposed ASU on the CECL double count, what will the tangible book pickup look like, and will you be an early adopter? A: If finalized, we plan to early adopt, which applies only to Harbor One. The impact is a 1% to 1.5% reduction in tangible book value dilution and a slight reduction in earn-back time. - David Rosato, Chief Financial Officer For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
