Latest news with #interest income
Yahoo
3 days ago
- Business
- Yahoo
Mexico's Banorte posts 4% profit bump as loan book grows
MEXICO CITY (Reuters) -Mexican lender Banorte on Tuesday reported a 4% bump in its second-quarter net profit, boosted by an expanding loan book. Net profit for the period came up to 14.62 billion pesos ($779.09 million), below the 15.01-billion-peso estimate from analysts polled by LSEG. Net interest income, the difference between what banks earn on loans and dole out in deposits, grew 12% year-over-year on larger loan book and a reduction in funding costs. In June, Mexico's central bank lowered its benchmark interest rate by 50 basis points to its lowest level in nearly three years. Commercial loans were up nearly 11% compared to the year-ago quarter and corporate loans leaped 16.7%, while government loans slid 16%. Return on equity grew 29 basis points year-over-year to 23.6%. ($1 = 18.7654 pesos at end-June) Sign in to access your portfolio
Reuters
3 days ago
- Business
- Reuters
Mexico's Banorte posts 4% profit bump as loan book grows
MEXICO CITY, July 22 (Reuters) - Mexican lender Banorte ( opens new tab on Tuesday reported a 4% bump in its second-quarter net profit, boosted by an expanding loan book. Net profit for the period came up to 14.62 billion pesos ($779.09 million), below the 15.01-billion-peso estimate from analysts polled by LSEG. Net interest income, the difference between what banks earn on loans and dole out in deposits, grew 12% year-over-year on larger loan book and a reduction in funding costs. In June, Mexico's central bank lowered its benchmark interest rate by 50 basis points to its lowest level in nearly three years. Commercial loans were up nearly 11% compared to the year-ago quarter and corporate loans leaped 16.7%, while government loans slid 16%. Return on equity grew 29 basis points year-over-year to 23.6%. ($1 = 18.7654 pesos at end-June)
Yahoo
18-07-2025
- Business
- Yahoo
Huntington Bancshares lifts 2025 interest income forecast as loan growth shines
(Reuters) -Regional lender Huntington Bancshares on Friday raised its annual interest income forecast, betting on robust loan growth and lower deposit costs. The Columbus, Ohio-based Huntington has delivered strong growth in its core businesses and expanded to North and South Carolinas and Texas in recent years, despite high interest rates squeezing loan demand for regional banks. Rate cuts by the U.S. Federal Reserve last year have also allowed banks to reduce deposit costs. The bank now expects net interest income (NII) - the difference between what it earns on loans and pays out on deposits - to grow between 8% and 9% in 2025, compared with its prior forecast of 5% and 7% rise. Annual loan growth is expected between 6% and 8%, higher than its prior forecast of 5% to 7% rise. NII jumped 12% to $1.47 billion in the second quarter, putting the bank on track for a record full-year interest income. Average total loans and leases grew $9.8 billion from the year-ago quarter. Huntington's profit per share rose to 34 cents in the quarter ending June 30, from 30 cents a year earlier. On Monday, Huntington struck a $1.9 billion deal for rival Veritex, furthering its Texas push. BOND PORTFOLIO REJIG Months after a similar move, Huntington rejigged a portion of its securities portfolio to boost profits, as banks increasingly dump lower-yielding securities. Huntington sold $900 million of corporate bonds in the quarter and reinvested proceeds into higher-yielding securities, resulting in a pre-tax loss of $58 million. The rejig is expected to boost revenue and interest margin in the second half of the year and into 2026, with Huntington picking up about 340 basis points of yield on the trade. 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
Yahoo
17-07-2025
- Business
- Yahoo
Fifth Third Bancorp's quarterly profit rises on higher interest income
(Reuters) -Fifth Third Bancorp reported a rise in second-quarter profit on Thursday, as lower deposit costs boosted the regional bank's interest income, cushioning a larger buffer for loan losses. An interest rate cutting cycle by the U.S. Federal Reserve in the second half of 2024 has prompted efforts by banks to reduce deposit costs across their portfolios. The company's net interest income (NII) — the difference between what banks pay customers on deposits and what it earns as interest on loans — for the quarter rose 7.8% from a year ago to $1.5 billion. The rise in NII reflected an improving asset mix and repricing of certain fixed-rate assets, with interest expense down 20% compared with the year-ago period. After a rocky start to the quarter when U.S. President Donald Trump's tariffs scuttled dealmaking, executive sentiment has rebounded on hopes for trade deals and potential rate cuts by the Fed. But regional lenders such as Fifth Third depend largely on loans to small businesses and consumers, who are particularly vulnerable to an economic slowdown. The Cincinnati, Ohio-based bank's provision for credit losses jumped to $173 million in the quarter from $97 million a year earlier, as it set aside more funds to account for a potential increase in loan defaults. The lender also benefited from higher fees, with total non-interest income rising 8% to $750 million in the quarter, boosted by a seasonal equity fund return. Net income available to common shareholders rose to $591 million, or 88 cents per share, in the three months ended June 30. It had reported $561 million, or 81 cents per share, a year earlier. Shares of Fifth Third have risen 1.8% YTD, as of last close, compared with a 10.7% gain in the KBW Bank index.
Reuters
15-07-2025
- Business
- Reuters
Wells Fargo profit rises on lower bad loan provisions
July 15 (Reuters) - Wells Fargo's (WFC.N), opens new tab profit rose in the second quarter as it set aside less money to shield for potential bad loans. Shares of the San Francisco, California-based bank fell 2.7% in premarket trading as the lender cut its expectation for annual interest income. Wells Fargo expects its interest income to be roughly in line with 2024 level of $47.7 billion, it said. In April, the bank had forecast NII growth would be at the low end of the 1% to 3% range. Analysts and investors were skeptical about Wells Fargo's ability to meet its targets for interest income after a slow start to 2025. The bank had expected its net interest income (NII), or the difference between what it earns on loans and pays out on deposits, to be relatively stable in the first half of 2025, with more growth in the second half. Heading into the results, some analysts had expected the bank to cut its NII forecast as elevated interest rates weighed on demand from borrowers. Meanwhile, provision for credit losses fell to $1.01 billion in the quarter from $1.24 billion a year ago. Consumers and businesses have continued to repay loans, allaying concern that shifting U.S. trade policies would trigger a recession. Still, uncertainty around the economic outlook persists. Wells Fargo executives have previously said their efforts to tighten credit over the past couple of years should help the bank to weather a potential economic downturn. The fourth-largest U.S. lender's net income was $5.49 billion, or $1.60 a share, in the three months ended June 30, it said on Tuesday. That compares with $4.91 billion, or $1.33 a share, a year earlier. Last month, the U.S. Federal Reserve lifted Wells Fargo's seven-year-long $1.95 trillion asset cap, allowing the bank to pursue unimpeded growth. Wells Fargo has been focused on fixing its regulatory problems in recent years. While it labored under a $1.95 trillion cap asset cap, rivals expanded. With the asset cap lifted and regulatory issues largely in the rearview mirror, Wall Street analysts expect Wells Fargo to attract more investor interest as its profits grow. Scharf has said the bank will expand carefully. Wells Fargo is likely to beef up its wholesale businesses by adding market share in commercial banking, corporate and investment banking and trading. The bank has closed seven regulatory punishments, known as consent orders, this year and 13 since 2019. It still has one remaining consent order from 2018.
