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Credit Losses

All articles tagged with #credit losses

HSBC’s Q1 revenue climbs, but pre-tax profit misses estimates on higher credit losses
business25 days ago

HSBC’s Q1 revenue climbs, but pre-tax profit misses estimates on higher credit losses

HSBC reported a first-quarter pre-tax profit of about $9.4 billion, below consensus estimates (~$9.59B), even as revenue rose 6% to $18.62 billion on stronger wealth and fee income. The bank flagged higher expected credit losses of $1.3 billion (up $400 million year-over-year) tied to UK sponsor exposure and a weaker macro outlook amid the Middle East conflict. Net interest income rose 8% to $8.9 billion, with costs up 8% as inflation and scheduling pressures weighed. Annualised RoTE stood at 17.3%, but management warned that adverse Middle East developments could push RoTE below 17% in 2026. The board approved a 10-cent interim dividend for 2026 and HSBC reiterated its plan to cut costs by $1.5 billion annually by 2026, alongside about $0.5 billion in Hang Seng Bank-related pre-tax revenue and cost synergies by end-2028 after Hang Seng’s privatization completed. Hong Kong shares fell roughly 3.7% following the results.

via CNBC|
#banks#business#credit-losses
JPMorgan Profit Dips as Rates Fall and Apple Card Deal Adds Headwinds
business4 months ago

JPMorgan Profit Dips as Rates Fall and Apple Card Deal Adds Headwinds

JPMorgan Chase posted 2025 earnings of $57 billion, down from 2024’s record $59 billion, due to lower interest rates squeezing net interest income, higher reserves for loan losses, and costs from acquiring Apple’s branded credit card; fourth-quarter profit fell 7% to $13 billion, while CEO Jamie Dimon signaled potential long-term benefits from deregulation and policy as headwinds persist.

via The New York Times|
#apple-card-acquisition#business#credit-losses
"Julius Baer CEO Resigns Amid Property Write-off and Private Debt Exit"
finance2 years ago

"Julius Baer CEO Resigns Amid Property Write-off and Private Debt Exit"

Swiss wealth manager Julius Baer reported significant net credit losses related to its exposure to real estate group Signa Holding, leading to CEO Philipp Rickenbacher stepping down and the announcement of 250 job cuts. The bank will exit its private debt businesses and focus on mortgage lending and specialized personal lending loans. Despite the challenges, shares rose 10% on the news. The bank's net profit for the full-year 2023 was down 52%, and assets under management grew by 1%.

via CNBC|
#ceo-resignation#cost-cutting#credit-losses
finance2 years ago

AmEx's Q3 Profit Surpasses Estimates with Strong Spending

American Express reported third-quarter profit that exceeded expectations, driven by strong spending from its affluent customer base. Despite concerns about an economic downturn, AmEx has managed to mitigate the impact of inflation and rate hikes. The company increased provisions for credit losses due to the higher likelihood of consumer defaults, but net write-off and delinquency rates remained below pre-pandemic levels. AmEx's CFO noted that demand for their products and services is coming from Gen Zs and Millennials, and the resumption of student loan repayments has not affected spending patterns. The company's earnings per share and revenue for the full year are expected to be in line with prior forecasts.

via Yahoo Finance|
#american-express#credit-losses#finance
Wells Fargo CFO predicts increase in net interest income.
finance3 years ago

Wells Fargo CFO predicts increase in net interest income.

Wells Fargo CFO, Mike Santomassimo, expects an upside in net interest income going ahead, despite losses in office loans. The bank had earlier issued guidance for a 10% higher net interest income this year, more than the full-year 2022 level of $45 billion. The San Francisco-based bank also warned that there could be some onetime expenses by the end of the year in terms of severance. Regulators have prohibited the fourth-largest U.S. bank from increasing its assets after a series of scandals over how it treated customers, which has curtailed balance sheet growth and increased regulatory expenses.

via Reuters.com|
#consumer-loans#credit-losses#finance
Canadian Banks Report Lower Earnings and Dividend Announcements
transportation3 years ago

Canadian Banks Report Lower Earnings and Dividend Announcements

BMO's quarterly earnings report showed a significant increase in provisions for credit losses and allowances for credit provisions in the transportation sector, which is considered a strong indicator of the health of fleets. The data suggests that trucking companies were hitting their lines of credit to a greater degree in the second quarter. Gross impaired loans also rose, but were still below peak levels seen in 2020. The weak trucking market has finally caught up to BMO's earnings report, with provisions for credit losses rising to CA$18 million from $6 million in the prior quarter.

via FreightWaves|
#bmo#credit-losses#impaired-loans
business3 years ago

Harley-Davidson's Q1 2023 Results: Credit Losses and Sales Drop.

Harley-Davidson's credit losses in Q1 were partly due to a shortage of repossession agents, as the repossession industry sees an uptick in demand amid more Americans struggling to afford their car payments. The shortage combined with a decline in retail bike values contributed to realized credit losses of about $52.6 million. Many repossession agents left the industry during the pandemic when business largely dried up due to stimulus measures. The company is making enhancements to its repossession strategy and expects a seasonal recovery in credit losses to reduce the loss rate in the coming quarters.

via Crain's Chicago Business|
#business#credit-losses#harley-davidson
Morgan Stanley's Mixed Results: Beats Earnings Estimates but Faces Credit Losses and Margin Slips
finance3 years ago

Morgan Stanley's Mixed Results: Beats Earnings Estimates but Faces Credit Losses and Margin Slips

Morgan Stanley's stock remained flat despite beating Q1 earnings projections, as the bank built up its provision for credit losses to protect against losses in commercial real estate and other business lines. The bank's profit fell 19% due to a scarcity of IPOs, M&A deals, and capital-raising activities. Morgan Stanley added $110 billion in new assets in its wealth-management unit, while investment-banking activity remained "constrained." The bank reduced its exposure to commercial real estate in its portfolio during the past 12 months.

via MarketWatch|
#commercial-real-estate#credit-losses#earnings
US Consumers Struggle with Credit Card Debt and Access to Credit
finance3 years ago

US Consumers Struggle with Credit Card Debt and Access to Credit

US banks, including Bank of America, JPMorgan Chase, Wells Fargo, and Citigroup, have reported that consumers are starting to fall behind on their credit card and loan payments as the economy softens, although delinquency levels are still modest. While profits have beaten analyst forecasts, industry chiefs warn that the strength will tail off this year as a recession looms and customer delinquencies climb. As large and medium-sized lenders become more conservative in underwriting, their net charge offs will probably peak in several quarters, leading to slower loan growth in 2023 and 2024.

via Reuters|
#credit-losses#delinquency-rates#finance
US Consumer Debt Woes Continue to Mount
finance3 years ago

US Consumer Debt Woes Continue to Mount

US banks including Bank of America, JPMorgan Chase, Wells Fargo, and Citigroup have reported that consumers are starting to fall behind on their credit card and loan payments as the economy softens, although delinquency levels are still modest. The banks have set aside billions of dollars to cover potential soured loans. While delinquencies and net charge-offs have slowly risen as expected, consumers and businesses generally remain strong, according to industry chiefs. However, worsening economic conditions could lead to credit deterioration throughout 2023 and 2024 with losses eventually surpassing pre-pandemic levels given an oncoming recession.

via Yahoo Finance|
#credit-losses#delinquency-rates#finance
finance3 years ago

Bank Earnings Defy Crisis, Impress Investors and Puzzle Analysts.

US banks, including JPMorgan Chase, Wells Fargo, Citigroup, and PNC, reported surging revenue and profits in Q1 2023, with executives assuring investors that the worst of the financial crisis was over. However, the industry still faces challenges, including the effect of higher interest rates on net interest income, which could begin to fall across the industry as smaller institutions pay more aggressively for deposits. Additionally, credit conditions could worsen, with JPMorgan and Wells Fargo increasing their provisions for credit losses, and Citigroup's CEO warning that recent industry turmoil could cause credit to contract, potentially leading to a shallow recession.

via Yahoo Finance|
#bank-earnings#banking-industry#credit-losses
Wells Fargo reports Q1 2023 earnings.
business3 years ago

Wells Fargo reports Q1 2023 earnings.

Wells Fargo reported a Q1 net income of nearly $5 billion, up over 30% from a year ago, due to higher interest rates. The bank's revenue of $20.73 billion beat Refinitiv estimates of $20.08 billion. However, the bank set aside $1.2 billion for credit losses, including a $643 million increase for potential losses related to commercial real estate, credit card, and auto loans. Noninterest income decreased 13% in the quarter, driven by lower results in its affiliated venture capital and private equity businesses as well as a decline in mortgage banking income.

via CNBC|
#business#credit-losses#earnings