Latest news with #investment banking
France 24
6 days ago
- Business
- France 24
Deutsche Bank posts bumper profits, shares soar
From April to June, net profit attributable to the group's shareholders came in at 1.48 billion euros ($1.74 billion), driven by its investment banking and asset management units. Analysts surveyed by financial data firm FactSet had expected a figure of 1.34 billion euros. In the same quarter last year, Deutsche Bank had booked its first quarterly loss since 2020 due to litigation costs linked to the troubled takeover of a smaller lender. Thursday's result "puts us on track to meet our 2025 targets", said CEO Christian Sewing. The group is aiming to substantially cut costs this year, and said its results so far showed it was achieving this. The bank's shares jumped around six percent in early trading on the Frankfurt Stock Exchange. Revenues rose to 7.8 billion euros in the second quarter, with increases of three percent at its investment banking unit and nine percent at its asset management division. The retail banking division saw revenues increase by two percent. The unit is undergoing a restructuring and Sewing announced in March that 2,000 jobs would be cut at the division. Corporate banking revenues were down by one percent, affected by exchange rate fluctuations. The euro has risen strongly this year against the dollar, impacting Deutsche Bank as it converts money earned in the US unit back into euros. Deutsche Bank has undergone major restructuring in recent years, seeking to rely more on retail and corporate banking after an aggressive shift in the early 2000s into investment banking drew it into multiple scandals.
Bloomberg
15-07-2025
- Business
- Bloomberg
Wells Fargo 2Q Net Interest Income Misses Estimates
00:00 You have Wells Fargo with a miss and a staying in line when it comes to net interest income. So you do have a member. JPMorgan also slightly missed on net interest income for the quarter. It's the outlook. Now, how much more juice can you squeeze out of the consumer? I had mentioned costs were also going to be a big focus this earnings season, I would say for Wells Fargo. Interesting to see credit quality is also really good. This is a really good news for both JPMorgan and Wells Fargo coming in better than expectations. However, non-interest expense, this is the expenses you have control over coming in a little bit higher than expected. The setup here was that Wells Fargo was already trading at a richer price to book ratio than you had at Bank of America, for example. There's a lot of promise in the stock with the asset cap lifting. So now for Charlie Scharf, it's a show me the money story. They did miss on investment banking as well. These are business lines that they want to grow over at Wells Fargo now that that asset cap is lifted. So high bar now, not everyone can be JPMorgan. They came in at more than a 20% return on tangible common equity. No one thought that they would get that this quarter. So can the rest of the banks keep pace?
Reuters
22-05-2025
- Business
- Reuters
Canada's TD Bank profit falls on hit from higher bad loan provisions
May 22 (Reuters) - TD Bank ( opens new tab reported a fall in second-quarter profit on Thursday, as the Canadian lender stockpiled money to cover for potential bad loans in an uncertain economic environment. The results from the country's second-biggest bank offer a glimpse into the impact of the tariff chaos on the Canadian economy. Trade uncertainty is expected to result in higher credit losses and weaker loan growth as sentiment takes a hit from the changing outlook. In the second quarter, TD's provision for credit losses jumped to C$1.34 billion ($965.5 million) from C$1.07 billion a year earlier. "TD delivered strong results this quarter, with robust trading and fee income in our markets-driven businesses as well as deposit and loan growth in Canadian Personal and Commercial Banking," CEO Raymond Chun said in a statement. "We are operating in a fluid macroeconomic environment," Chun said. TD is also undergoing a broad-based strategic review as the new leadership looks to simplify the business and turnaround the bank after its anti-money laundering problems. Chun, a longtime TD Bank executive, took the helm in February. Meanwhile, TD's wholesale banking arm - which houses its capital markets and investment banking businesses - reported record revenue of C$2.13 billion, a 10% jump from a year earlier. Uncertainty stemming from U.S. trade policy injected heightened market volatility, spurring trading activity as investors aggressively rejigged their portfolios. Among transactions in the quarter, TD Securities was the lead left bookrunner on the $13.1 billion secondary offering of Charles Schwab (SCHW.N), opens new tab shares by TD, one of the largest equity market deals ever. TD kicks off the earnings season for Canadian lenders, with rival big banks set to report their results next week. The bank posted adjusted net income of C$3.63 billion, or C$1.97 per share, for the three months ended April 30, compared with C$3.79 billion, or C$2.04 per share, a year earlier. TD shares have gained 17.5% this year, outperforming rival banks. ($1 = 1.3878 Canadian dollars)
