Corporate finance

Wells Fargo missed analysts’ earnings estimates as home lending slowed and the bank set aside more than expected for potentially soured loans as the Federal Reserve’s rate hikes started to cool the once-hot housing market.

The San Francisco bank reported a 31% increase in loan originations during the second quarter. Analysts are wondering whether it will be able to secure enough low-cost funds to avoid eroding margins.

Credit quality at the largest U.S. bank by assets remains strong for now, but a top executive issued a warning about what may lie ahead.

The buyback pause is meant to allow the bank to get to a 13.2% common equity Tier 1 ratio by next March, comfortably clearing a higher bar recently set by regulators. Meanwhile, net income fell 28% to $8.6 billion in the second quarter.

Consumers are feeling less confident about their economic prospects, and investors worry their loan repayments will slow. Those fears have led to large drops in stock prices for consumer finance companies, particularly for those who lend to borrowers with lower credit scores.

The online consumer lender touts its AI-based underwriting models as a key strength, but analysts say larger-than-expected losses on some of its loans are contributing to funding pressures.

Dermot McDonogh will be the custody bank's chief financial officer, as incoming CEO Robin Vince starts making his mark. The two each spent more than two decades at Goldman Sachs.

The fast-paced rise in rates should be good for banks — until it isn't. The higher interest earned on loan payments will at some point be offset by higher interest paid on deposits. The only questions are: When, and by how much?

When Goldman Sachs executives set out to woo investors in early 2020, they offered a promising outlook for their novelty Main Street business. The unit would go from a money-suck to break-even in 2022. It isn’t quite working out that way. 

JPMorgan Chase, Bank of America and Wells Fargo will account for more than $2 billion of the lost revenue, according to a new report from The Pew Charitable Trusts.

Canadian banks fell more than 20% from their record high set in early February as recession fears send investors fleeing.

Credit Suisse Group Chief Executive Thomas Gottstein batted away questions on whether the bank is a takeover target and said he’s still holding out hope for a profitable second quarter.

Executives at banks north of the border pointed this week to several potential U.S. economic snags, including inflation, the possibility of a housing market correction and soaring energy prices.

The government-sponsored enterprises will start releasing information similar to what large banks already do, starting in the first quarter of 2023.

Royal Bank of Canada posted earnings that topped analysts’ estimates as business loans and solid credit conditions powered its retail banking business.

Toronto-Dominion Bank’s U.S. personal-banking business benefited from continued strength in the housing market and robust credit conditions in the fiscal second quarter.

Bank of Nova Scotia and Bank of Montreal, Canada’s third- and fourth-largest lenders, got a boost last quarter as the nation’s businesses increased borrowing to meet customer demand.

The amount of money parked at a major Federal Reserve facility climbed to yet another all-time high, surpassing the $2 trillion milestone for the first time, as investors struggled to find places to invest their cash in the short term.  

Click here for an overview of No. 1-10 on American Banker's annual list of the highest-performing banks with less than $2 billion of assets and a full breakdown of all the banks on the roster.

Calls for “reform” in times of high liquidity ignore the scalability of the system, and the need to have it around in times of trouble.