Latest news with #creditcosts
Bloomberg
a day ago
- Automotive
- Bloomberg
Japan Carmakers Put Squeeze on Households With Higher Loan Rates
Japan's automakers have begun hiking loan rates as a historic central bank pivot to unwind three decades of ultra-loose monetary policy trickles down to consumers, raising household credit costs. More than a year after the Bank of Japan's first interest rate increase in 17 years, the volatile march higher in super-long bonds is raising the cost of servicing loans, including car repayments — making the auto sector one of the first key pain points as households look to tighten their belts.
Reuters
6 days ago
- Business
- Reuters
India's Axis Bank tumbles on disappointing June quarter, asset quality woes
July 18 (Reuters) - Shares of India's Axis Bank ( opens new tab shed 4.6% on Friday, a day after the private lender reported an unexpected drop in June-quarter profit, with analysts citing higher credit costs and margin pressures as key concerns. The stock was on track for its worst day in six months and was the top loser on Nifty Bank (.NSEBANK), opens new tab and Nifty Private Bank (.NIFPVTBNK), opens new tab indexes. It also dropped the most on benchmark Nifty 50 (.NSEI), opens new tab, which was trading flat. India's fourth-largest private lender by market value reported a surprise lower quarterly profit drop on Thursday, as its bad loans surged after a one-time industry benchmarking exercise. Its net interest margin also contracted to 3.8% from 4.05%. Systematix said margins would remain a drag in the second quarter as well, as the bank needs to fully take in the impact of the central bank's repo rate cut. When rates are lowered, lenders typically pass on the advantage to borrowers first and only later cut deposit rates, which temporarily squeezes their margins. The lender said it made changes to asset classification norms, after it found an "odd bank" following a criterion more stringent than it. However, it did not name the "odd bank" or give details on the benchmarking exercise. The bank's new asset recognition norms weighed on asset quality, with high credit costs adversely impacting the profit, BOBCaps analysts said. Macquarie analysts said the results raised "more questions than answers", adding that the bank's credit costs were higher than its private peers, even after adjusting for the one-time accounting change. Session's losses trimmed Axis Bank's year-to-date gains to 4.3%, compared with an 11% and 12% climb in the banks index and private banks index. Benchmark Nifty 50 has gained 6% so far in 2025. Larger rivals HDFC Bank ( opens new tab and ICICI Bank ( opens new tab will report their June-quarter results on Saturday.
Reuters
6 days ago
- Business
- Reuters
India's Axis Bank slumps as first-quarter results disappoint
July 18 (Reuters) - India's Axis Bank ( opens new tab shed 4.6% on Friday, a day after the private lender reported an unexpected drop in June quarter profit, with analysts citing higher credit costs and margin pressures as key concerns. The stock was the top loser on Nifty Bank (.NSEBANK), opens new tab and Nifty Private Bank (.NIFPVTBNK), opens new tab, which were trading 0.4% and 0.9% lower, respectively. It also fell the most on benchmark Nifty 50 (.NSEI), opens new tab, which was trading flat. India's fourth-largest private lender by market value reported a surprise lower quarterly profit drop on Thursday, as its bad loans surged after a one-time industry benchmarking exercise. Its net interest margin also contracted to 3.8% from 4.05%. The bank's new asset recognition norms weighed on asset quality, with high credit costs adversely impacting the profit, BOBCaps analysts said.
