Hints and tips:
...Citi declined to comment. Citi’s move underscores the impact of new capital requirements implemented by the Federal Reserve that threaten to curtail lending by large US banks....
...JPMorgan, Citi and Wells will report earnings on April 12. Goldman Sachs publishes results on April 15 while Morgan Stanley and BofA will do the same the following day....
...From Bloomberg overnight: Citi Is in Talks to Start New Private Credit Strategy by Early 2024 Citigroup Inc. is in discussions to start a new direct-lending strategy by early January, the latest in a series...
...Revenues from corporate lending dropped 26 per cent, however, as higher interest rates dented demand for borrowing. A drop in market volatility at the end of the year also hurt the bank’s traders....
...The business would expand Citi’s business in China, which already includes corporate lending and other banking services....
...All five of Citi’s core businesses — corporate lending; credit cards and US consumer banking; transaction services; buying and selling stocks and bonds; and private banking — posted rising sales....
...Chang’s and business technology provider Computer Services Inc....
...Still, some eyebrows were raised at the Citi news over at Alphaville....
...Slowing growth in lending risks curbing a key driver of profits for the big US banks when they begin reporting third-quarter earnings this week....
...Citi said the volume of lending being done through Bridge was growing, but didn’t disclose specifics....
...The executives were speaking after their banks reported fourth-quarter earnings that showed that their lending businesses had benefited significantly from higher interest rates....
...Zoom out beyond Morgan Stanley and Citi and their moves hint at broader pressures....
...And if Micro Connect’s financing were to be reclassified as lending, he would face caps on how much money stores could repay. Sceptics have compared his model to outlawed peer-to-peer lending....
...JPMorgan, the largest US bank, and Wells raised their outlooks for lending income in 2023....
...Overall lending in the quarter was little changed from a year ago. The weakness across several of its businesses led the bank to announce plans last month to cut as many as 5,000 staff....
...Residential would be. But without a residential crisis and assuming consumption growth stays around 2 per cent, you’d have to really crush business spending to get a recession....
...The bumper lending profits compensated for a fall in investment banking fees, which were down 6 per cent at $1.56bn for JPMorgan and 31 per cent lower at $686mn for Citi....
...This week Citi became the latest large institution to take a step into tokenisation by allowing big-money clients to turn their deposits into tokens....
...Sr Susan Francois, treasurer of the Sisters of St Joseph of Peace, a Roman Catholic order based in the US and UK, said that whether it was through project financing or general corporate lending, Citigroup...
...Citigroup’s chief financial officer Mark Mason said corporate customers, which account for more than 60 per cent of Citi’s overall deposits, had been more sensitive to moves in interest rates....
...Deposits are typically banks’ cheapest source of funding and a reduction could constrain lending....
...Citi said its credit card customers spent 7 per cent more in the first three months of 2023 than they did in the first three months of last year....
...JPMorgan, Citi and BofA and First Republic declined to comment....
...The outlook for lending will be an important focus when JPMorgan, BofA, Citi and Wells Fargo report earnings on January 13....
...This year, shareholder resolutions at Citi and BofA demanding the banks stop financing new fossil fuel projects won less support than they did in 2022....
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