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☆ Barclays jumps 8.6% after announcing major strategic overhaul
▼ + stars: | 2024-02-20 | by ( Elliot Smith | ) www.cnbc.com time to read: +4 min

LONDON — Barclays on Tuesday reported a fourth-quarter net loss of £111 million ($139.8 million) as the British lender announced an extensive strategic overhaul, boosting its shares more than 8.6% through the day. For the full year, net attributable profit came to £4.27 billion, down from £5.023 billion in 2022 and below a consensus forecast of £4.59 billion. Credit impairment charges were £552 million, up from £498 million in the fourth quarter of 2022. The business will now be divided into five operating divisions, separating the corporate and investment bank to form: Barclays U.K., Barclays U.K. Corporate Bank, Barclays Private Bank and Wealth Management, Barclays Investment Bank and Barclays U.S. Consumer Bank. Barclays is targeting total gross cost savings of £2 billion and an RoTE of greater than 12% by 2026.

Persons: C.S, Venkatakrishnan, Mariva Rivas, DBRS Morningstar, Rivas Organizations: Citigroup Inc, State Street Corp, Barclays Plc, HSBC Holdings Plc, LONDON, Barclays, Reuters, Momentum, Corporate Bank, Barclays Private Bank, Wealth Management, Barclays Investment Bank, Barclays U.S . Consumer Bank, CNBC, U.S Locations: Wharf

Financial services company State Street Corporation made the list. Analysts surveyed by FactSet now estimate State Street will report an adjusted $1.83 in earnings per share in the fourth quarter. STT 1Y mountain State Street Corp. stock. Goldman Sachs recently upgraded State Street to buy from neutral, with analyst Alexander Blostein noting a potentially favorable risk/reward balance in coming quarters. Analysts polled by FactSet now forecast an adjusted $1.49 in earnings per share in the fourth quarter on revenue of $4.2 billion.

Persons: FactSet, Goldman Sachs, Alexander Blostein, PPG, Morgan Stanley, Stocks, Kinder Morgan Organizations: Bank of America, Citigroup, Delta Air Lines, CNBC, Financial, Street Corporation, Street Corp, PPG Industries, Kinder Morgan Inc, Fastenal Company, Nine Locations: FactSet

☆ State Street CEO O'Hanley to take additional role as bank's president
▼ + stars: | 2023-10-30 | by ( ) www.reuters.com time to read: +1 min

The logo and trading symbol of financial services company State Street are displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 8, 2017. REUTERS/Brendan McDermid/File Photo Acquire Licensing RightsOct 30 (Reuters) - State Street Corp (STT.N) said on Monday its CEO and Chairman Ron O'Hanley will take on an additional role as the bank's president after Louis Maiuri retires, set for early next year. Maiuri also serves as State Street's chief operating officer and head of its largest business, investment services. The custodian bank said Mostapha Tahiri, currently head of Asia Pacific, Middle East and North Africa, will become chief operating officer, while O'Hanley will take the responsibility of the investment services unit. State Street is among the world's largest custodian banks with $40 trillion in assets under custody and/or administration and $3.7 trillion in assets under management (AUM) as of Sept 30.

Persons: Brendan McDermid, Ron O'Hanley, Louis Maiuri, Maiuri, Mostapha Tahiri, O'Hanley, Manya Saini, Krishna Chandra Organizations: New York Stock Exchange, REUTERS, Street Corp, Asia Pacific, Thomson Locations: New York, U.S, Middle East, North Africa, Bengaluru

Like many financial institutions in the current high interest rate environment, Northern Trust is confronting growing financing costs as tries to hold onto deposits. Northern Trust shares sank to $69.81, down more than 9%, to their lowest level since mid-July after Tyler's comments. A Northern Trust spokesperson did not immediately respond to a Reuters request for further comment. Asset and wealth managers, including Northern Trust and peer State Street Corp (STT.N), are seeing a decline in NII as customers move deposits to higher yielding alternatives. In July, Northern Trust reported that its deposits fell by 10% to $91.9 billion in the second quarter, although Tyler said on Tuesday deposits have generally stabilized.

Persons: Jason Tyler, That's, it's, Tyler, Tyler's, Chibuike Oguh, Michelle Price, Mark Potter Organizations: Northern Trust Corp, Barclays, Northern Trust, State Street Corp, Trust, Thomson Locations: New York

July 19 (Reuters) - The shares of Northern Trust (NTRS.O) jumped by more than 14% on Wednesday after the asset and wealth manager reported a smaller-than-expected drop in second quarter net interest income underpinned by higher interest rates and slower deposit losses. Analysts were, however, expecting a bigger drop in Northern Trust's quarter-on-quarter NII just like State Street. Northern Trust's shares were trading at $82.14, on track for its biggest one-day percentage gain since March 2020. Total revenue fell 1% to $1.77 billion in the quarter as Northern Trust generated fewer fees from its custodial, investment, and wealth management businesses. Northern Trust said its total assets under custody increased 5% to $14.48 trillion, while total asset management also rose 5% to $1.37 trillion.

Persons: Goldman Sachs, Alexander Blostein, NII, Sri Hari, Krishna Chandra Organizations: Northern Trust, Street Corp, Trust, Sri, Thomson Locations: Northern Trust's, Northern, Bengaluru

☆ State Street beats profit estimates as interest income rises
▼ + stars: | 2023-07-14 | by ( ) www.reuters.com time to read: +2 min

July 14 (Reuters) - State Street Corp (STT.N) on Friday beat profit estimates for the second quarter as the bank's interest income benefited from the U.S. Federal Reserve's policy tightening and assets under management rose amid a recovery in the equity markets. Banking giants JPMorgan Chase (JPM.N) and Wells Fargo (WFC.N) also saw profits climb in the second quarter on the back of higher interest income. State Street said its net interest income climbed 18% in the three months ended June 30 to $691 million. Shares of the custodian bank, however, fell 2.8% in premarket trading as State Street missed revenue estimates. Total revenue climbed 5% to $3.11 billion, below estimates of $3.14 billion amid a drop in servicing, management and FX trading fees.

Persons: Wells, Manya Saini, Shinjini Organizations: Street Corp, U.S, Banking, JPMorgan Chase, Refinitiv, State Street, Thomson Locations: U.S . Federal, Bengaluru

☆ Factbox: Big banks stand strong against Fed's commercial real estate gloom
▼ + stars: | 2023-06-28 | by ( Michelle Price | ) www.reuters.com time to read: +3 min

WASHINGTON, June 28 (Reuters) - Big U.S. banks' commercial real estate portfolios put in a surprisingly good performance during the Federal Reserve's annual health checks, with losses declining slightly on last year, the central bank said on Wednesday. With risks growing in the commercial real estate (CRE) sector globally, analysts and investors were looking to the Fed's "stress tests" for more insight on how exposed the country's lenders are to falling real estate prices. Commercial real estate (CRE), especially offices, has been hit by interest rates hikes and workers choosing to stay at home. The Fed's annual bank "stress tests" established following the 2007-2009 financial crisis probe how lenders would fare against an extreme scenario: a 40% decline in commercial real estate values. The average projected CRE loan loss rate across the group was 8.8% of average loan balances, compared with 9.8% last year, the Fed said.

Persons: Goldman Sachs, Morgan Stanley, Charles Schwab, Michelle Price, Pete Schroeder, Stephen Coates Organizations: Federal, Moody's Investors Service, Bank of America Corporation, of New York Mellon Corporation, Barclays US, BMO Financial Corp, Financial Corporation, Charles, Charles Schwab Corporation, Citigroup Inc, Financial Group, Inc, Suisse Holdings, DB USA Corporation, Goldman, Goldman Sachs Group, JPMorgan Chase & Co, T Bank Corporation, Northern Trust Corporation, PNC Financial Services Group, RBC US Group Holdings, Street Corporation, US Holdings, Truist Financial Corporation, UBS, Holding, . Bancorp, & Company, Thomson Locations: Big U.S

☆ Factbox: Industry targets of U.S. Republicans' anti-ESG efforts
▼ + stars: | 2023-04-22 | by ( Ross Kerber | ) www.reuters.com time to read: +3 min

Here is a look at major efforts and, in some cases, their impact on specific industries. In addition, legislation pending in states, including Texas and Florida, aims to limit the consideration of ESG factors by pension funds, which could cut off fund firms from public contracts. Top fund firms such as BlackRock Inc (BLK.N) and State Street Corp (STT.N) - both NZAM members - have said their ESG efforts only support clients concerns, for instance the view that climate change poses investment risks. Several of the bills have been passed into law in states including Mississippi and West Virginia. Republicans failed to gain control of the U.S. Senate in elections held Nov. 8, however, limiting their investigative powers.

April 19 (Reuters) - Citizens Financial Group Inc's (CFG.N) first-quarter profit missed Wall Street estimates as deposits declined and it set aside more rainy-day funds to cover for souring loans. The potential economic downturn prompted Citizens to set aside $168 million in case its customers default on their loans, compared with $3 million a year earlier. Citizens gradually set aside more money to cover potential losses on office loans, where it predicts weakness as remote working becomes more popular, while rising interest rates and a weaker economy put pressure on borrowers. Average deposits fell 2.6% to $174.4 billion in the three months ended March 31, compared with $179 billion at the end of the previous quarter. Citizens reported an underlying profit of $1.10 per share; analysts' on average had expected it to report $1.13 per share, according to Refinitiv IBES data.

Wall Street closed lower on Friday after mixed economic data appeared to affirm another Fed interest rate hike in May, dampening investor enthusiasm after a series of big U.S. bank earnings launched the first-quarter reporting season. "Regional bank earnings will come in very slightly positive, while bigger banks will probably post surprisingly positive results." Other major U.S. banks including Goldman Sachs Group Inc (GS.N), Bank of America Corp (BAC.N) and Morgan Stanley (MS.N) will report through the week. ET, Dow e-minis were up 35 points, or 0.10%, S&P 500 e-minis were up 1.75 points, or 0.04%, and Nasdaq 100 e-minis were down 3.75 points, or 0.03%. Prometheus Biosciences Inc (RXDX.O) rallied 69.9% after Merck & Co (MRK.N) said it will buy the biotech company for about $10.8 billion.

☆ State Street profit misses on lower fee income; shares fall
▼ + stars: | 2023-04-17 | by ( ) www.reuters.com time to read: +1 min

State Street, the world's largest custodian bank, saw its assets under custody or administration fall 10% to $37.6 trillion in the first quarter. Along with a number of other large U.S. banks, State Street provided $1 billion of liquidity to First Republic Bank (FRC.N) last month. State Street set aside $44 million as provision for credit losses in the reported quarter as steep rate rises stoke fears of an economic slowdown. Analysts had expected State Street to earn $1.64 per share, according to Refinitiv IBES data. "We are optimistic about client onboardings and we expect revenue growth in the coming quarter," State Street Chief Executive Officer Ron O'Hanley said.

☆ State Street, Schwab See Deposits Drop
▼ + stars: | 2023-04-17 | by ( Justin Baer | ) www.wsj.com time to read: 1 min

Charles Schwab Corp. and State Street Corp. both reported a decline in customer deposits, the latest sign that rising interest rates continue to weigh on banks’ balance sheets. At Schwab, the brokerage giant, deposits fell 11% to $326 billion from the previous quarter and were down 30% from a year earlier. State Street, one of the largest custody banks, said Monday that deposits totaled about $224 billion at the end of the first quarter, down 5% from December and 11% from a year ago.

☆ Futures subdued as investors eye bank earnings, Fed cues
▼ + stars: | 2023-04-17 | by ( ) www.reuters.com time to read: +3 min

SummarySummary Companies Futures up: Dow 0.07%, S&P 0.10%, Nasdaq 0.01%April 17 (Reuters) - U.S. stock index futures were largely flat on Monday as investors awaited more bank earnings and views from Federal Reserve policymakers that could shape expectations around when the central bank will pause its monetary policy tightening. Wall Street ended lower on Friday as a barrage of mixed economic data appeared to affirm another Fed interest rate hike in May, dampening investor enthusiasm after a series of big U.S. bank earnings launched the first-quarter reporting season. U.S. central bank officials including New York Fed President John Williams and Cleveland Fed President Loretta Mester are scheduled to speak later this week. ET (1230 GMT) is expected to show business conditions in New York state improved in April after slumping in the previous month. ET, Dow e-minis were up 24 points, or 0.07%, S&P 500 e-minis were up 4.25 points, or 0.10%, and Nasdaq 100 e-minis were up 1 point, or 0.01%.

Wall Street closed lower on Friday after mixed economic data appeared to affirm another Fed rate hike in May, dampening investor enthusiasm after a series of big U.S. bank earnings launched the first-quarter reporting season. Other major U.S. banks including Goldman Sachs Group Inc (GS.N), Bank of America Corp (BAC.N) and Morgan Stanley (MS.N) will report through the week. "Regional bank earnings will come in very slightly positive, while bigger banks will probably post surprisingly positive results," said Sam Stovall, chief investment strategist at CFRA Research. Prometheus Biosciences Inc (RXDX.O) rallied 69.5% on Merck & Co's (MRK.N) plans to buy the biotech company for about $10.8 billion. The S&P index recorded nine new 52-week highs and one new low, while the Nasdaq recorded 29 new highs and 55 new lows.

☆ U.S. regional banks hit by deposit flight as clients seek higher returns
▼ + stars: | 2023-04-17 | by ( ) www.reuters.com time to read: +2 min

[1/2] A view of the Charles Schwab office location in Manhattan, New York, U.S., November 15, 2021. Deposits at State Street Corp (STT.N) and M&T Bank Corp (MTB.N) fell 3% each, while those at Charles Schwab Corp (SCHW.N) shrank 11% from the prior quarter. Both Schwab and M&T Bank rode a surge in interest income to beat profit expectations, but custodian bank State Street fell short after an outflow of client funds hurt its fees. Its Chief Executive Officer Walter Bettinger addressed commentary about portfolios of debt securities held by banks, including Schwab, which are disclosed as unrealized losses in their earnings. M&T Bank shares were up nearly 6% at $123.70 while State Street stock plunged 11% to $70.98, dragging down peers Northern Trust Corp (NTRS.O) and Bank of New York Mellon Corp (BK.N).

Meanwhile, Republicans, many from energy-producing states, have raised a growing chorus of challenges on ESG. This can be a problem for fund participants who do not share ESG goals, the Republicans wrote. Asset managers have argued that such memberships align with their fiduciary obligations, and some are giving clients more control over proxy votes. "Asset managers voting for the exclusion of one of their competitors has clear antitrust implications," the letter states. The resolutions were filed by activist shareholder group As You Sow, which the Republicans suggested had targeted Vanguard over its withdrawal.

Meanwhile, Republicans, many from energy-producing states, have raised a growing chorus of challenges on ESG. The latest letter built on concerns many of the same attorneys general brought to BlackRock last August. This can be a problem for fund participants who do not share ESG goals, the Republicans wrote. Another section of the Republicans' letter cites several pending shareholder resolutions that ask corporations to dial back the use of Vanguard Group retirement plan funds because of Vanguard's fossil fuel holdings. "Asset managers voting for the exclusion of one of their competitors has clear antitrust implications," the letter states.

March 16 (Reuters) - First Republic Bank's (FRC.N) shares fell 17% in extended trading on Thursday, despite an unprecedented show of support in the bank from nearly a dozen of the world's largest financial institutions. The bank's shares, which had closed 10% higher after a volatile day that saw trading halted 17 times, slumped in after-market trading. Jason Ware, chief investment officer for Albion Financial Group, said the Dimon-led banking sector intervention on Thursday was a "shot in the arm of the system" but likely more was needed. A First Republic Bank branch is pictured in Midtown Manhattan in New York City, New York, U.S., March 13, 2023. The bank's shares have been hit hard in recent days in the aftermath of the collapse of Silicon Valley Bank.

☆ S&P says not seen rampant deposit outflows to merit rating action
▼ + stars: | 2023-03-15 | by ( ) www.reuters.com time to read: +1 min

March 15 (Reuters) - S&P has not placed other U.S. banks on CreditWatch negative since First Republic Bank as it has not seen widespread deposit outflows, the ratings agency said on Tuesday, hours after Moody's cut its outlook on the U.S. banking system to negative. read more read moreEarlier on Tuesday, S&P Global Ratings placed First Republic Bank (FRC.N) on CreditWatch negative, reflecting lower confidence in the lender's financial strength. However, later in the day, S&P said it had not seen evidence that the unmanageable deposit outflows seen at a few banks had widely spread across the banks it covers. Moody's Investors Service revised its outlook on the U.S. banking system to "negative" from "stable" earlier on Tuesday to reflect the rapid deterioration in the operating environment. Reporting by Lavanya Ahire and Shubham Kalia in Bengaluru; Editing by Savio D'SouzaOur Standards: The Thomson Reuters Trust Principles.

☆ U.S. Commerce Dept. names financial sector, government experts to chips team
▼ + stars: | 2023-02-17 | by ( David Shepardson | ) www.reuters.com time to read: +2 min

WASHINGTON, Feb 17 (Reuters) - The U.S. Commerce Department said Friday it is naming more than a dozen members to a team overseeing $52.7 billion in government funding to boost semiconductor manufacturing and research. The new team members include officials with experience managing large federal programs, experts from the semiconductor industry, and executives with financial sector experience, the department said. The department said Todd Fisher - a Commerce official who previously worked for nearly 25 years at KKR & Co. Inc - will serve as chief investment officer. The department plans to release its first Notice of Funding Opportunity this month, a key step to beginning the process of making funding awards. In September, Commerce Department chief economist Aaron "Ronnie" Chatterji was named White House Coordinator for CHIPS Implementation while former Treasury official Michael Schmidt was named Commerce Department CHIPS Program Office director.

☆ Ken Griffin's Citadel Securities reveals 5.5% stake in crypto bank Silvergate
▼ + stars: | 2023-02-14 | by ( Hannah Lang | ) www.reuters.com time to read: +1 min

Feb 14 (Reuters) - Citadel Securities, the market maker that is owned by Citadel's Ken Griffin, on Tuesday reported a 5.5% stake in cryptocurrency-focused lender Silvergate Capital Corp (SI.N) worth about $25 million, according to a regulatory filing. The filing was a result of the firm's market making operations as opposed to a directional investment in Silvergate, according to a person familiar with the matter. Federal prosecutors in Washington are probing Silvergate and its dealings with FTX and Alameda Research, a source familiar with the investigation has said. U.S. custodian bank State Street Corp (STT.N) reported a 9.32% passive stake in Silvergate earlier this month. Reporting by Hannah Lang in Washington; Editing by Leslie Adler and Jane MerrimanOur Standards: The Thomson Reuters Trust Principles.

☆ State Street reports 9.32% stake in embattled crypto bank Silvergate
▼ + stars: | 2023-02-02 | by ( ) www.reuters.com time to read: 1 min

Feb 2 (Reuters) - U.S. custodian bank State Street Corp (STT.N) on Thursday reported a 9.32% passive stake in cryptocurrency-focused lender Silvergate Capital Corp (SI.N) as of Dec. 31, according to a regulatory filing. The disclosure comes as Silvergate seeks to ease investor concerns over its future, after reporting a $1 billion loss for the fourth quarter because FTX's bankruptcy shook confidence in the crypto sector. Earlier this week, a group of bipartisan U.S. senators sent a letter to Silvergate asking for details on its dealings with FTX and affiliate Alameda. Passive shareholders do not seek to influence a company's management or its course of business. Reporting by Niket Nishant in Bengaluru; Editing by Devika SyamnathOur Standards: The Thomson Reuters Trust Principles.

☆ Sam Bankman-Fried has serious beef with FTX's new boss, John Ray III
▼ + stars: | 2023-01-20 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

John Ray, CEO of FTX Group, described a litany of amateurish business practices used to run the multibillion-dollar exchange. This much we know for certain: Sam Bankman-Fried and FTX's new boss, John Ray III, are not each other's biggest fans. From their comments, we can see that they disagree on how to run a company, where certain cash went, and who can repay who. It doesn't take a stoic to make Bankman-Fried look chatty, given the extensive media tour he embarked on after FTX went under. And strangely, as the boss and former boss duke it out, FTX's native token FTT is quietly skyrocketing again.

☆ Top business leaders discuss financial innovation at the World Economic Forum
▼ + stars: | 2023-01-17 | by ( Cnbc.Com Staff | ) www.cnbc.com time to read: 1 min

[The stream is slated to start at 2:30 a.m. Please refresh the page if you do not see a player above at that time.] Moderated by CNBC's Steve Sedgwick, top business leaders discuss at Davos, Switzerland, how financial actors respond to ongoing disruptions while keeping pace with technological advancement. Joining CNBC is Ronald P. O'Hanley, the chairman and chief executive officer at State Street Corporation, Lynn Martin, president of NYSE Group Inc., Dan Schulman, the president and chief executive officer at PayPal, Mark Suzman, the chief executive officer of the Bill & Melinda Gates Foundation and Mohammed Al-Jadaan, the minister of finance for Saudi Arabia. Subscribe to CNBC on YouTube.

☆ UK house prices to fall by up to 10% this year, Lloyds Bank CEO says
▼ + stars: | 2023-01-17 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

Fog shrouds the Canary Wharf business district including global financial institutions Citigroup Inc., State Street Corp., Barclays Plc, HSBC Holdings Plc and the commercial office block No. LONDON — U.K. house prices will fall by up to 10% this year, as higher mortgage rates and the broader cost of living crisis curtail home buying, Lloyds Bank CEO Charlie Nunn told CNBC on Tuesday. The U.K. property sector remained sluggish in recent months, as the Bank of England continued to hike interest rates aggressively in order to reel in double-digit inflation. Inflation hit 10.7% in November, and the Bank has hiked rates at nine consecutive policy meetings to lift its main rate from 0.1% to 3.5%. A report from British property website Rightmove on Monday showed asking prices for homes rising slightly in January for the first time in two months.

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