Latest news with #FinancialMarkets
Bloomberg
29-05-2025
- Business
- Bloomberg
Hedge Funds Return to Sohn Hong Kong After Mixed Year for Bets
After a tumultuous 12 months, it's no small achievement that the Sohn investment conference returns to Hong Kong on Friday with the better half of last year's picks having made money. Hedge fund managers will present their ideas at the Sohn Hong Kong Investment Leaders Conference as financial markets gyrate, with global growth and supply chains under threat and geopolitics mired in escalating tensions.
Yahoo
29-05-2025
- Business
- Yahoo
National Bank of Canada (NTIOF) Q2 2025 Earnings Call Highlights: Strong EPS Growth and ...
Earnings Per Share (EPS): $2.85, up 12% year-over-year. Return on Equity (ROE): 15.6%. CET1 Ratio: 13.4%. Quarterly Dividend Increase: Raised by $0.04. P&C Banking Net Income: $316 million, including $45 million from CWB. Wealth Management Net Income Growth: 15% year-over-year. Financial Markets Net Income: Over $500 million. Credigy Net Income: $40 million. ABA Bank Client and Deposit Growth: 33% and 21% respectively. Revenue Growth (All-Bank): 33% year-over-year. PTPP Growth (All-Bank): 45% year-over-year. Expenses Increase (Excluding CWB): 12% year-over-year. Non-Trading Net Interest Income (NII) Increase: 11% sequentially. Total Loans: $286 billion, up 22% year-over-year. Deposits (Excluding Wholesale Funding): $294 billion, up 23% year-over-year. Total PCLs: $545 million or 79 basis points. Adjusted Total PCLs: $315 million or 45 basis points. Gross Impaired Loan Ratio: 98 basis points. Warning! GuruFocus has detected 4 Warning Signs with NTIOF. Release Date: May 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. National Bank of Canada (NTIOF) reported a 12% year-over-year increase in earnings per share, reaching $2.85. The bank's return on equity was strong at 15.6%, reflecting robust financial performance. The acquisition of CWB is progressing well, with early momentum in cost and funding synergies. Wealth management saw a 15% increase in net income year-over-year, driven by strong organic growth. The bank's CET1 ratio stands at a solid 13.4%, supporting business growth and allowing for a dividend increase. Macroeconomic uncertainty, including global trade tensions and geopolitical instability, poses challenges to forecasting growth and inflation. Operating leverage was negative in the wealth management segment due to the integration of CWB's wealth business. The bank faces competitive pressures in deposit pricing, impacting net interest margins. The integration of CWB is expected to temporarily slow growth in certain segments, such as commercial loans. The bank's gross impaired loan ratio increased, driven by the CWB transaction, indicating potential credit quality concerns. Q: Why didn't National Bank of Canada update its earnings guidance despite strong Q2 results? A: Marie Gingras, CFO, explained that while they are confident in delivering mid-single-digit EPS growth for fiscal 2025, they see potential upside depending on market conditions. The strong first half provides a solid foundation, but they face a tough comparison in Q3. The successful integration of CWB is expected to create growth opportunities across Canada. Q: Can you provide more details on the AIRB transition and its impact on risk-weighted assets? A: Marie Gingras noted that while a small portfolio was migrated this quarter, the majority of the benefits from the AIRB transition are expected in 2026. A full capital plan update will be provided later in the year, likely in Q4. Q: Why isn't National Bank of Canada considering share buybacks given its strong CET1 ratio? A: Laurent Ferreira, CEO, stated that the focus is on organic growth and integrating CWB. The bank is cautious due to market uncertainty and plans to provide a capital plan update in Q4, which will include discussions on buybacks. Q: What needs to happen for revenue synergies from the CWB acquisition to materialize? A: Michael Denham, EVP, explained that revenue synergies will begin once client migrations to National Bank's systems are complete. This will allow CWB clients to access the full range of National Bank products and services, with migrations starting in the summer. Q: How did National Bank of Canada achieve such strong trading results in Q2? A: Etienne Dubuc, EVP, Financial Markets, attributed the success to an ideal trading environment with short volatility events, strong client activity, and robust issuance. The bank's defensive positioning and advanced trading technology allowed it to capitalize on market conditions. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
South China Morning Post
24-05-2025
- Business
- South China Morning Post
Money talks and Trump should pay attention to Asia's bond markets
For all of US President Donald Trump's public bellicosity, it is money that talks – more softly but more powerfully, and with greater impact. This is the lesson Trump needs to learn as investors, especially those in Asia, vote with their feet and beat a retreat from US financial markets. The clearest sign of the severity of that retreat is not the immediate shocks administered to US stock prices by Trump's rantings on tariffs and trade. Rather, it is visible in the longer-term developments in Asia's local currency bond markets. A remarkable and still largely overlooked transformation is taking place as these markets expand to a size that now rivals the dollar-denominated US Treasury bond market and exceeds that of euro-denominated euro-area bonds. At the same time, faith in US debt securities is rapidly eroding. As Reuters put it in a market briefing on May 21, 'while the US$29 trillion Treasury market is still the linchpin of the global financial system, increasing US policy risk is prompting the rest of the world to rethink its exposure to US assets, including Treasuries'. The decision of ratings agency Moody's to strip the US government of its AAA credit rating can only accelerate this erosion of confidence. The implications of this for the financial system in Asia and around the world are significant at a time when everything appears to hang on Trump's every word and deed. For one thing, they suggest there is little danger of Asia suffering another financial crisis of the kind that gripped the region in 1997, even with the risk of a global economic slowdown or recession stemming from Trump's erratic policies. They also suggest the assumption that the global economy cannot survive without America's deep and liquid capital markets is misplaced. Long-held faith in the strength and integrity of the US Treasury bond and stock markets had started to erode even before Trump dropped his 'Liberation Day' bombshell on April 2, imposing punitive 'reciprocal' tariffs on just about every country. That erosion accelerated rather than slowed when Trump declared a 90-day pause in his tariff assaults barely a week later. His retreat was seen as bowing to the markets' reaction as US bonds, stocks and the US dollar all began to slide on the news of the tariffs.
Scoop
23-05-2025
- Business
- Scoop
Have Your Say On Financial Markets(Conduct Of Institutions) Amendment (Duty To Provide Financial Services)Amendment Bill
The Chairperson of the Finance and Expenditure Committee is calling for submissions on the Financial Markets (Conduct of Institutions) Amendment (Duty to Provide Financial Services) Amendment Bill. The closing date for submissions is 11.59pm on Friday, 4 July 2025. The bill is a member's bill in the name of Andy Foster. The bill would amend the Financial Markets (Conduct of Institutions) Amendment Act 2022 to place a new duty on financial institutions to provide financial services to customers except in situations based on law or for valid and verifiable commercial grounds. Tell the Finance and Expenditure Committee what you think: Make a submission on the bill by 11.59pm on Friday, 4 July 2025. For more details about the bill:
Scoop
22-05-2025
- Business
- Scoop
Bills Increase Transparency Of Money Transfers And Ports
Two Labour bills drawn from the Member's Ballot today would require greater transparency of international money transfers, and bring more public accountability and transparency to port companies. 'Too many families are losing money to hidden fees when they send remittances overseas. That's not fair, especially with the cost of living rising,' Arena Williams said. 'My Financial Markets (International Money Transfers) Amendment Bill will require banks and other money transfer services to be upfront about their fees, exchange rates, and commissions. Consumers should know exactly what they're paying, before they send a cent. 'New Zealanders pay more for international money transfers than people in Australia and other countries. My Bill is especially important for Pacific, Filipino, Indian and other migrant communities who regularly use remittance services to support loved ones abroad. 'Banks and finance companies charge for these services in a way most consumers won't understand. It's not clear, it's not fair, and it hits working families hardest. 'This Bill is about making banking fairer for everyone, whether you're sending money home to support family or making a purchase online in a foreign currency. Labour is on the side of consumers, not the banks.' The Bill would: Require full disclosure of all fees, commissions, and exchange rates before a transfer is made Ensure the total cost of a transfer is clearly displayed, including markups Stop banks and providers from hiding charges in fine print 'This is an important step in bringing down everyday costs for families – starting with banking. Everyone deserves to know what they're paying,' Arena Williams said. Lemauga Lydia Sosene's Local Government (Port Companies Accountability) Amendment Bill would bring more public accountability and transparency to publicly-owned port companies. 'Currently, publicly-owned port companies are immune to Local Government Official Information and Meetings Act requests which limits their public accountability. This Bill would change that and give local communities greater transparency around decisions that could affect their lives,' Lemauga Lydia Sosene said.
