Latest news with #TravisHill
Reuters
28-05-2025
- Business
- Reuters
U.S. banks see profits climb in first quarter: FDIC
WASHINGTON, May 28 (Reuters) - The U.S. banking industry reported $70.6 billion in profits in the first quarter of 2025, a jump of 5.8% from the previous quarter, the Federal Deposit Insurance Corporation reported Wednesday. The regulator said profit growth was primarily due to climbing noninterest income at banks, which was up 7% on the quarter. "With strong capital and liquidity levels to support lending and protect against potential losses, the banking industry continued to support the country's needs for financial services while navigating the challenges presented by economic uncertainty, elevated inflation and interest rates, tighter credit, and elevated unrealized losses," said FDIC Acting Chairman Travis Hill in a statement. However, banks also reported slight growth in provision expenses against potential loan losses. Those expenses were up 0.3% quarterly to $22.5 billion, and now stand 9.1% higher than a year ago. While bank asset quality remained generally favorable, with past-due loans relatively flat, the FDIC noted that banks are still grappling with struggles in commercial real estate, where overdue loans hit 1.49%, its highest level since 2014. Loan growth was also reported to be relatively slow, with balances climbing just 0.5% from the previous quarter. In terms of annual growth, banks are currently seeing just 3% growth, which is below the pre-pandemic average of 4.9%, the FDIC said.
Yahoo
20-05-2025
- Business
- Yahoo
US Set to Hit Deposit Insurance Fund Target Ratio by End of 2025
(Bloomberg) — The US government's bedrock fund meant to protect depositors in the event of a bank failure is poised to reach its legal target ratio by the end of 2025 — about three years ahead of schedule. America, 'Nation of Porches' Can Frank Gehry's 'Grand LA' Make Downtown Feel Like a Neighborhood? NJ Transit Makes Deal With Engineers, Ending Three-Day Strike NJ Transit Train Engineers Strike, Disrupting Travel to NYC Chicago's O'Hare Airport Seeks Up to $4.3 Billion of Muni Debt The Federal Deposit Insurance Corp., which manages the fund by levying assessments on banks, is required by law to ensure the pool of money meets a reserve ratio of at least 1.35%. At the end of 2024, the agency said the balance stood at $137.1 billion and had reached a reserve ratio of 1.28%. The agency has been rebuilding the Deposit Insurance Fund since 2020, when a surge in deposits pushed the reserve ratio below the level required by law. Staff said that even though the regulator is ahead of schedule to meet the target ratio, there were no recommended changes to the restoration plan. Tuesday's update, which was presented by staff to the FDIC board, is part of an ongoing evaluation of the fund, which has become a political lightning rod because the pot is filled and re-filled by insured banks kicking in quarterly fees. Acting FDIC Chair Travis Hill said that the agency should consider whether insured deposits is the right metric to measure the fund's exposure to losses. 'The FDIC moved away from charging assessments on the basis of insured deposits years ago, creating a mismatch in how assessments are charged and how the health of the DIF is measured,' Hill said during his first open board meeting in the role. 'One alternative permitted by the FDI Act is to use the assessment base, rather than insured deposits as the denominator of the reserve ratio, and I've asked staff to analyze this option for future consideration.' The agency is legally required to resolve failed FDIC-insured banks using the least costly option to the fund. Why Apple Still Hasn't Cracked AI Anthropic Is Trying to Win the AI Race Without Losing Its Soul Microsoft's CEO on How AI Will Remake Every Company, Including His Inside the First Stargate AI Data Center Cartoon Network's Last Gasp ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
01-05-2025
- Business
- Yahoo
American Express Company (AXP): Among the Best Fintech Stocks to Buy in 2025
We recently compiled a list of the . In this article, we are going to take a look at where American Express Company (NYSE:AXP) stands against the other fintech stocks. The terms finance and technology are combined to form the term fintech. This wide category includes companies that integrate modern technology into financial operations. Fintech companies include, for instance, those that create and run person-to-person payment applications and those that develop innovative digital payment processing solutions. Many fintech stocks have recovered from the post-COVID-19 down market, but they are still well below their peak as we approach 2025. Nonetheless, the fintech industry has numerous opportunities for long-term potential. In 2025, fintech is beginning to rebound. Global fintech funding rose to $8.5 billion in Q4 of 2024, a 12% increase from the previous quarter, according to CB Insights. While overall 2024 funding decreased 20% year on year, this is a significant improvement from the 48% and 44% declines in 2023 and 2022, respectively, showing that capital flows to the industry have stabilized. The regulatory sentiment is also altering. For example, in a statement released on January 21, Travis Hill, acting chairman of the Federal Deposit Insurance Corporation, provided a list of priorities, including plans to 'adopt a more open-minded approach to innovation and technology adoption, which includes a more transparent approach to fintech partnerships and to digital assets and tokenization, and engagement to address growing technology costs for community banks.' This suggests a more relaxed regulatory framework, which could stimulate a resurgence of fintech activity. The fact that some of the biggest fintech companies, such as Swedish buy now, pay later unicorn Klarna and neobank Chime, are now indicating plans to go public is another significant clue that the industry is recovering from the blues. Furthermore, since financial monitoring is a crucial component of public markets, this probably signals profitability improvement, which has been a significant difficulty for the fintech industry. Tyler Griffin, managing partner and cofounder of Restive Partners, stated to American Banker: "I'd bet that the chief financial officer of every late-stage, privately funded company is at least exploring what an IPO in the near term looks like.' The financial technology industry has never been static; rather, it thrives on challenging the status quo. Financial services have changed in recent years due to a combination of technological developments, regulatory changes, and economic disruptions. In 2024, fintech saw a massive spike in the usage of AI, mostly for internal use cases like operational efficiency and fraud detection. However, issues with accuracy and privacy continue to restrict consumer-facing applications. According to a Deloitte survey, the biggest obstacle to generative AI adoption in financial services, according to 35% of enterprises, is real-world errors. Financial organizations are hesitant to use AI tools directly with customers because of regulatory sensitivities. Nonetheless, enterprise adoption is speeding up. Within a year, Morgan Stanley introduced its "Debrief" assistant, which OpenAI powers. Meanwhile, BNY Mellon and OpenAI have partnered for several years. For this article, we sifted through the Fintech ETFs and online rankings to form an initial list of the 25 Fintech Stocks. From the resultant dataset, we chose 12 stocks with the highest number of hedge fund investors, using Insider Monkey's database of 1009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have used the stock's revenue growth year-over-year as a tie-breaker in case two or more stocks have the same number of hedge funds invested. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A close-up view of a payment terminal, capturing the sophistication of a payment network. Number of Hedge Fund Holders: 71 Revenue Growth (YoY): 9.05% American Express Company (NYSE:AXP) is strongly established in the financial technology industry because of its growing range of tech-focused products, including buy now, pay later (BNPL) options and digital credit cards and mobile payments. The firm has benefited from numerous years of faster growth as its loan and new card acquisitions have greatly surpassed those of its competitors. Historically, the business has prioritized payment networks over lenders. Even though it still only receives about 25% of its revenue from net interest income, this hasn't changed. Over the past three years, American Express Company (NYSE:AXP)'s move to a younger cardholder base and more lending features on its cards has caused net interest income to grow at a compound annual growth rate of 26.1%, which has significantly boosted overall growth. The business posted strong results in the first quarter of 2025, with earnings per share growing 9% from the previous year to $3.64, owing partially to a $73 million credit reserve release. The price target for American Express Company (NYSE:AXP) was increased by Morgan Stanley from $246 to $250. Although spending decreased more than anticipated, the analyst pointed out that a minor EPS beat was driven by a reserve release. According to the analyst, credit appears "solid," with delinquencies remaining below pre-COVID levels, but reserves must rise in Q2. Overall AXP ranks 10th among the best fintech stocks to buy in 2025. While we acknowledge the potential of AXP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AXP but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks to Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
30-04-2025
- Business
- Yahoo
Sea Limited (SE): Among the Best Fintech Stocks to Buy in 2025
We recently compiled a list of the . In this article, we are going to take a look at where Sea Limited (NYSE:SE) stands against the other fintech stocks. The terms finance and technology are combined to form the term fintech. This wide category includes companies that integrate modern technology into financial operations. Fintech companies include, for instance, those that create and run person-to-person payment applications and those that develop innovative digital payment processing solutions. Many fintech stocks have recovered from the post-COVID-19 down market, but they are still well below their peak as we approach 2025. Nonetheless, the fintech industry has numerous opportunities for long-term potential. In 2025, fintech is beginning to rebound. Global fintech funding rose to $8.5 billion in Q4 of 2024, a 12% increase from the previous quarter, according to CB Insights. While overall 2024 funding decreased 20% year on year, this is a significant improvement from the 48% and 44% declines in 2023 and 2022, respectively, showing that capital flows to the industry have stabilized. The regulatory sentiment is also altering. For example, in a statement released on January 21, Travis Hill, acting chairman of the Federal Deposit Insurance Corporation, provided a list of priorities, including plans to 'adopt a more open-minded approach to innovation and technology adoption, which includes a more transparent approach to fintech partnerships and to digital assets and tokenization, and engagement to address growing technology costs for community banks.' This suggests a more relaxed regulatory framework, which could stimulate a resurgence of fintech activity. The fact that some of the biggest fintech companies, such as Swedish buy now, pay later unicorn Klarna and neobank Chime, are now indicating plans to go public is another significant clue that the industry is recovering from the blues. Furthermore, since financial monitoring is a crucial component of public markets, this probably signals profitability improvement, which has been a significant difficulty for the fintech industry. Tyler Griffin, managing partner and cofounder of Restive Partners, stated to American Banker: "I'd bet that the chief financial officer of every late-stage, privately funded company is at least exploring what an IPO in the near term looks like.' The financial technology industry has never been static; rather, it thrives on challenging the status quo. Financial services have changed in recent years due to a combination of technological developments, regulatory changes, and economic disruptions. In 2024, fintech saw a massive spike in the usage of AI, mostly for internal use cases like operational efficiency and fraud detection. However, issues with accuracy and privacy continue to restrict consumer-facing applications. According to a Deloitte survey, the biggest obstacle to generative AI adoption in financial services, according to 35% of enterprises, is real-world errors. Financial organizations are hesitant to use AI tools directly with customers because of regulatory sensitivities. Nonetheless, enterprise adoption is speeding up. Within a year, Morgan Stanley introduced its "Debrief" assistant, which OpenAI powers. Meanwhile, BNY Mellon and OpenAI have partnered for several years. For this article, we sifted through the Fintech ETFs and online rankings to form an initial list of the 25 Fintech Stocks. From the resultant dataset, we chose 12 stocks with the highest number of hedge fund investors, using Insider Monkey's database of 1009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have used the stock's revenue growth year-over-year as a tie-breaker in case two or more stocks have the same number of hedge funds invested. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A person livestreaming their gameplay on a mobile device with integrated payment options. Number of Hedge Fund Holders: 86 Sea Limited (NYSE:SE) began as a gaming company, Garena, but in 2015 expanded into e-commerce. It runs Shopee, the biggest e-commerce platform in Southeast Asia based on gross merchandise value. A platform that operates in Indonesia, Taiwan, Vietnam, Thailand, Malaysia, the Philippines, and Brazil, Shopee is a hybrid C2C and B2C marketplace. The firm's third segment, SeaMoney, which makes it one of the Best Fintech Stocks, offers loans, payments, digital banking, and insurance services. Sea Limited (NYSE:SE) reported a strong Q4 2024 performance, with a good mix of robust growth and improved profitability. Adjusted EBITDA climbed 366% to $591 million, while revenue surged 37% to $5.0 billion, the strongest growth in over three years. Shopee, the company's main e-commerce division, maintained its dominance in key areas, particularly Thailand and Indonesia, as its total Gross Merchandise Volume (GMV) rose 28% to $28.6 billion. Shopee's marketplace take rate climbed by 160 basis points year over year to 12.8%, mostly due to improving ad adoption and higher commissions. Most importantly, the growth of GMV has not been hampered by previous fee hikes, showing Shopee's pricing power based on the value it provides to sellers. Loop Capital maintained its Buy rating on Sea Limited (NYSE:SE) shares and increased its price objective from $135 to $165. In a research note, the analyst informs investors that the company's gaming franchise has shown resilience and is positioned to be a consistent cash contributor that grows with upside potential, while its fintech in emerging markets presents a huge growth opportunity, and the e-commerce ecosystem is a consumer data goldmine to power risk models. According to the company, the business should be a key position in long-term growth portfolios because of the stock's appealing near-term setup. Overall SE ranks 7th among the best fintech stocks to buy in 2025. While we acknowledge the potential of SE as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SE but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks to Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
30-04-2025
- Business
- Yahoo
PayPal Holdings, Inc. (PYPL): Among the Best Fintech Stocks to Buy in 2025
We recently compiled a list of the . In this article, we are going to take a look at where PayPal Holdings, Inc. (NASDAQ:PYPL) stands against the other fintech stocks. The terms finance and technology are combined to form the term fintech. This wide category includes companies that integrate modern technology into financial operations. Fintech companies include, for instance, those that create and run person-to-person payment applications and those that develop innovative digital payment processing solutions. Many fintech stocks have recovered from the post-COVID-19 down market, but they are still well below their peak as we approach 2025. Nonetheless, the fintech industry has numerous opportunities for long-term potential. In 2025, fintech is beginning to rebound. Global fintech funding rose to $8.5 billion in Q4 of 2024, a 12% increase from the previous quarter, according to CB Insights. While overall 2024 funding decreased 20% year on year, this is a significant improvement from the 48% and 44% declines in 2023 and 2022, respectively, showing that capital flows to the industry have stabilized. The regulatory sentiment is also altering. For example, in a statement released on January 21, Travis Hill, acting chairman of the Federal Deposit Insurance Corporation, provided a list of priorities, including plans to 'adopt a more open-minded approach to innovation and technology adoption, which includes a more transparent approach to fintech partnerships and to digital assets and tokenization, and engagement to address growing technology costs for community banks.' This suggests a more relaxed regulatory framework, which could stimulate a resurgence of fintech activity. The fact that some of the biggest fintech companies, such as Swedish buy now, pay later unicorn Klarna and neobank Chime, are now indicating plans to go public is another significant clue that the industry is recovering from the blues. Furthermore, since financial monitoring is a crucial component of public markets, this probably signals profitability improvement, which has been a significant difficulty for the fintech industry. Tyler Griffin, managing partner and cofounder of Restive Partners, stated to American Banker: "I'd bet that the chief financial officer of every late-stage, privately funded company is at least exploring what an IPO in the near term looks like.' The financial technology industry has never been static; rather, it thrives on challenging the status quo. Financial services have changed in recent years due to a combination of technological developments, regulatory changes, and economic disruptions. In 2024, fintech saw a massive spike in the usage of AI, mostly for internal use cases like operational efficiency and fraud detection. However, issues with accuracy and privacy continue to restrict consumer-facing applications. According to a Deloitte survey, the biggest obstacle to generative AI adoption in financial services, according to 35% of enterprises, is real-world errors. Financial organizations are hesitant to use AI tools directly with customers because of regulatory sensitivities. Nonetheless, enterprise adoption is speeding up. Within a year, Morgan Stanley introduced its "Debrief" assistant, which OpenAI powers. Meanwhile, BNY Mellon and OpenAI have partnered for several years. For this article, we sifted through the Fintech ETFs and online rankings to form an initial list of the 25 Fintech Stocks. From the resultant dataset, we chose 12 stocks with the highest number of hedge fund investors, using Insider Monkey's database of 1009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have used the stock's revenue growth year-over-year as a tie-breaker in case two or more stocks have the same number of hedge funds invested. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A consumer in a cafe paying for goods using a mobile payment app. Number of Hedge Fund Holders: 94 PayPal Holdings, Inc. (NASDAQ:PYPL) is a major player in the online payments industry. Its Venmo person-to-person payment network has emerged as a market leader, and its name, PayPal, has completely changed how customers pay for products both online and offline. The company's new leadership team is aggressively promoting growth by introducing a new advertising platform, Fastlane checkout, and efficiency improvements. PayPal Holdings, Inc. (NASDAQ:PYPL) has the financial flexibility to take advantage of opportunities as they arise since it has over $11 billion in cash and assets on its balance sheet and over $5 billion in free cash flow annually. There are currently 432 million active accounts with the company across more than 200 countries. Given its profitability and dominant position in the market, the industry is likely to continue to grow. It is ranked fifth on our list of the Best Fintech Stocks. Strategically, the business is focusing on innovation to improve its position in payments and commerce. In 2024, PayPal Holdings, Inc. (NASDAQ:PYPL) introduced and grew several innovative services, such as PayPal Everywhere, Fastlane, PayPal Complete Payments, and new branded checkout experiences. The company launched PayPal Everywhere in September 2024. The company expanded its spending and greatly boosted the use of debit cards due to the invention. By 2025, it intends to introduce PayPal Everywhere into European markets. Overall PYPL ranks 5th among the best fintech stocks to buy in 2025. While we acknowledge the potential of PYPL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PYPL but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks to Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
