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...The second-biggest cutter of 2023 was Wells Fargo, which this month revealed it had lowered its global headcount by 12,000 to 230,000....
...Profits at US bank Wells Fargo fell in the first quarter, in a sign that the benefits of high interest rates are waning for the big lenders....
...But here’s the catch: Interest rates have climbed quite a lot in the past couple of years, and it’s not just one company that’s feeling stress in the leveraged loan market....
...JPMorgan Chase, Bank of America, Wells Fargo and Citigroup collectively made $253bn in net interest income (NII) for the whole of 2023 — a 19 per cent jump from 2022’s total....
...Other top banks Citigroup, JPMorgan Chase and Wells Fargo also recorded drops in lending in the first three months of the year as they revealed results late last week....
...But banks are finally having to pass on higher savings rates to depositors, according to JPMorgan and Wells Fargo, which also reported earnings....
...Over the past two years, big banks such as JPMorgan Chase, Bank of America, Citigroup and Wells Fargo charged more for loans in lockstep with the Fed lifting interest rates, without passing on the increase...
...Workers at a Wells Fargo bank branch in Albuquerque on Wednesday voted to form a union, making them the first employees of a major US bank to unionise in the latest sign of the resurgence of the labour movement...
...Higher interest rates contributed to the profit increase, with bank interest income rising from £6.1mn to £25.8mn year on year....
...Wells Fargo bank analyst Mike Mayo said it made sense for banks with healthy levels of capital to return money to shareholders when profits were high....
...So that’s basically for big banks that take in lots of deposits like JPMorgan or Wells Fargo. That’s really where they make a lot of their profits from....
...Citi and Wells Fargo also recorded drops in lending. The pullback in lending hit JPMorgan Chase particularly hard....
...The vast majority are local minnows with fewer than $10bn in assets. In 2021, JPMorgan leapfrogged Wells Fargo as the bank with more branches than any other in the US....
...That contrasted with Wells’ estimates for a 7 to 9 per cent decline in net interest income in 2024....
...Franklin Templeton is lukewarm but likes “naturally diversifying ‘alternatives’ such as private assets” RBC Capital Markets has a Q&A. “The time to pivot will come in due course,” says Wells Fargo....
...The Swiss National Bank announced a surprise cut to interest rates on Thursday in a sign of policymakers’ confidence over falling inflation....
...Despite this, in recent days executives from the country’s four largest banks — JPMorgan Chase, Bank of America, Citigroup and Wells Fargo — said during earnings calls that consumers were resilient....
...Wells Fargo reported a 60 per cent increase in profits in the third quarter, as the bank continues to benefit from higher interest rates....
...Wells has a strong foothold in the sector outside New York dating back to 2004, when a pair of former Citi private bankers launched a law firm business at what was then Wachovia....
...Under chief executive Charlie Scharf, Wells Fargo has made progress on fixing the internal problems that gave rise to a series of scandals....
...US lenders — JPMorgan Chase, Bank of America, Wells Fargo and Citigroup, according to a Bloomberg analysts’ consensus....
...Profits at Wells Fargo fell from $5bn to $4.6bn. Private equity pioneer KKR is predicting a revival in global IPOs and takeover activity after a two-year slowdown....
...In his annual letter to shareholders, the head of the largest US bank by assets said JPMorgan had plans for interest rates going above 8 per cent and as low as 2 per cent....
...This was in a year when banks such as NatWest had to pay more to keep depositors. NatWest’s cost of funding via deposits climbed at an average quarterly pace of 0.35 per cent....
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