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US banks’ first-quarter profits may be the best that they can get this year, Citi analyst says

US banks’ first-quarter profits may be the best that they can get this year, Citi analyst says

Finance
U.S. banks have delivered a mixed bag of first-quarter financial results so far — but that's probably the sector's best this year, especially if the Federal Reserve does not increase interest rates at all, according to a Citi analyst. Four of the six largest American banks have released their first-quarter financial results over the past week. Among them, J.P. Morgan and Wells Fargo reported quarterly profit and revenue that exceeded analysts' expectations, while Goldman Sachs and Citigroup both missed estimates on their revenue. Morgan Stanley and Bank of America are scheduled to report earnings this week.
India needs to bolster level of capitalisation of government-owned banks: IMF

India needs to bolster level of capitalisation of government-owned banks: IMF

Finance
Noting that the level of non-performing loans in India remains high, the International Monetary Fund has favoured bolstering the level of capitalisation of some banks, particularly government-owned banks. Anna Ilyina, Division Chief of IMF Monetary and Capital Markets Department, said Wednesday that bolstering the level of capitalisation was one of the recommendations of the Financial Sector Assessment Programme (FSAP) for India. "The level of non-performing loans (NPLs) in India remains high. And the level of the capitalization of some banks, particularly government-owned banks, should be bolstered," said Ilyina. "There were some steps that were taken by the authorities to boost capital buffers in banks and also to improve governance in state-owned banks that have had some positive imp...
How bad loan mess is hurting lesser-rated borrowers as well as banks

How bad loan mess is hurting lesser-rated borrowers as well as banks

Finance
Best of the Breed: That’s the central hiring mandate to HR line managers at bulgebracket investment banks and private equity firms shopping for talent at top business, law and engineering schools. The key assumption behind this elitist practice is that the majority of those coming on board would be high performers, offsetting the cumulative negative impact of the minuscule minority that might fail to measure up to the exacting standards of Wall/Dalal Street. Curiously, this elitism is being extended to India’s commercial banking, as the financial system seeks to extricate about Rs 10 lakh crore stuck in bad loans. Lenders now prefer retail borrowers to companies, and the highest-rated businesses in the land to those that come slightly lower down in the pecking order of credit-worthiness. I
Challenger banks in talks about £1.6bn merger

Challenger banks in talks about £1.6bn merger

Business
By Mark Kleinman, City editor Two of Britain's biggest challenger banks are in advanced talks about an all-share merger that would create a lender worth ‎more than £1.6bn.Sky News has learnt that OneSavings Bank and Charter Court Financial Services Group have been holding on-off discussions about a deal ‎for months. The talks are now said to be at an advanced stage, with an announcement confirming the merger possible within the next fortnight.However, one source close to the deal said it could still fall apart.Under the proposed terms of the agreement, OneSavings, which has a market value of just over £900m, would use its paper to make an offer for Charter Court, which is valued at about £730m. A source said the deal woul...
Santander boss banks £6m pay amid branch closure plan

Santander boss banks £6m pay amid branch closure plan

Business
Santander has revealed its UK boss was awarded a £6.4m pay package for 2018, amid a profits slump and plans for mass branch closures.The high street lender's annual report shows that chief executive Nathan Bostock's annual salary last year was £1.68m. In addition, he was paid a £2.3m annual bonus, with a further £638,000 in pensions and benefits.His £4.6m total pay was then boosted by a further £1.8m in final compensation for the share bonuses he gave up when he left the Royal Bank of Scotland in 2013.Mr Bostock quit as RBS group finance director to join Santander after just 10 weeks in the job. The annual report showed that Mr Bostock's pay package for 2018 came in below the £6.5m he was awarded in the previous year which included £4.7m in ...