Big Banks Reports, Stocks Mixed
During earnings season, big banks like JPMorgan (NYSE:JP) reported record quarterly revenue, leading to a rally in bank shares with over 6% gain. However, CEO Jamie Dimon warned of potential impact from recent financial turmoil on lending. Stocks were mixed, with the S&P 500 (SPI:SP500) and Dow Jones Industrial Average (DOWI:DJI) showing slight gains, while the Nasdaq Composite index (NASDAQI:NDX) fell due to a selloff in Lucid (NASDAQ:LCID), an electric-vehicle maker. U.S. government bond yields were volatile, with the 10-year Treasury note edging up to 3.461% from 3.450% on Thursday.
Citigroup Reports Strong Q1 Profits
Citigroup (NYSE:C) reported strong profits in the first quarter of the year, driven by consumer spending and corporate activity, despite increased credit costs and lack of deals. Net income rose to $4.6 billion or $2.19 per share, a 7% increase from the same period last year, surpassing analysts’ expectations of $1.67 per share.
JPMorgan Boosts Outlook
JPMorgan Chase (NYSE:JP) expects to increase profits from lending, reporting a 52% rise in net income to $12.6 billion or $4.10 per share in the first quarter. This exceeded analysts’ estimates, driven by higher profits from its consumer business and a $37 billion increase in deposits following the collapse of Silicon Valley Bank.
Wells Fargo Beats Expectations
Wells Fargo & Co. (NYSE:WFC) reported higher-than-expected net interest income in the first quarter, benefiting from the Federal Reserve’s rate hikes. The firm’s net interest income reached $13.3 billion, up 45% from the previous year, surpassing analysts’ expectations. This helped offset provisions for souring loans, resulting in profit exceeding estimates.
Mitsubishi Addresses Losses on Credit Suisse Bonds
Mitsubishi UFJ Financial Group Inc.’s (NYSE:MUFG) wealthy clients incurred losses of over $700 million on Credit Suisse Group AG’s riskiest bonds purchased through the bank’s brokerage venture with Morgan Stanley. The bank is holding meetings to address the issue and reach out to approximately 1,500 affected clients who lost a combined 95 billion yen ($717 million).
HSBC’s Sale of French Retail Bank in Doubt
HSBC’s (NYSE:HSBC) sale of its French retail bank to Cerberus for a nominal amount of €1 is now uncertain due to “significant, unexpected interest rate rises.” Cerberus has expressed concerns about obtaining regulatory approval without amending the transaction terms, leading to ongoing discussions and potential delays in closing the deal. This sale was part of HSBC’s strategy to focus on profitable markets in Asia and divest from lossmaking businesses in Europe and the US.
BlackRock Eyes Growth Opportunities
BlackRock (NYSE:BLK) eyes “transformational” opportunities amid recent banking turmoil and market dislocation, says CEO Larry Fink. Reports assets under management recovering to $9.1tn. Focus on doubling down on technology and expanding global footprint. Regional banks, brokers, and wealth managers under pressure after Silicon Valley Bank’s collapse.
888 Reinstates Customer Accounts
888 (LSE:888) reinstates Middle Eastern customer accounts after compliance failings earlier this year. Internal investigation concluded, and company implements robust policies and procedures to take on new customers in the region. Expects to recoup £25mn-30mn from returning VIP customers out of £50mn worth of frozen accounts.
Canadian ETFs Face Trading Ban
Investors in 11 Canadian exchange traded funds (ETFs) face an indefinite trading ban after Emerge Canada, the sponsor of the funds, failed to file audited financial statements by the March 31 deadline. Both primary and secondary market trading has been suspended, halting the creation and redemption of shares in the funds and preventing existing investors from selling their units to other investors in the secondary market, due to the cease trade order imposed by the Ontario Securities Commission.
MGM Resorts to Build Japan’s First Casino
MGM Resorts International (NYSE:MGM), along with a group of investors, has won government approval to build Japan’s first casino on an artificial island in Osaka. This clears the way for a long-delayed plan to make casino resorts part of Japan’s tourism industry. The resort, set to open in late 2029 on Yumeshima or Dream Island, will be a 5.3 million-square-foot complex with a gambling area, conference center, and theaters, in the popular tourist destination of Osaka.
UnitedHealth Posts Higher Q1 Revenue and Profit
UnitedHealth Group Inc. (NYSE:UNH), a healthcare and insurance company, posted higher revenue and profit for the first quarter and raised its full-year earnings outlook. Revenue rose 15% to $91.93 billion, surpassing analysts’ expectations, driven by member growth at its UnitedHealthcare insurance business and Optum health-services arm.
Apollo Focuses on Supplier Diversity
Apollo Global Management Inc. (NYSE:APO) is doubling down on supplier diversity across its private-equity portfolio, including companies like ADT Inc. and Yahoo Inc. The private-equity firm aims to increase spending with suppliers and vendors owned or managed by women and minorities, with a target of $2 billion in total outlays by portfolio companies by the end of 2025.
Dechra Pharmaceuticals in Takeover Talks with EQT
Shares in Dechra Pharmaceuticals (LSE:DPH) surged after the UK veterinary medicine group announced it was in takeover talks with Swedish buyout firm EQT (NYSE:EQT). EQT has offered to pay 4,070p a share, valuing Dechra at £4.6bn. Dechra stated it would be prepared to recommend the offer to shareholders. This potential transaction comes as a rare bright spot in an otherwise slow start to the year for global dealmakers.