US recession has been avoided, thanks corporate excellent job
Albert Edwards, a French investment bank strategist, has found an economic anomaly that is helping many US firms evade the Federal Reserve’s wrath and avert a recession. Edwards argues that not just “Greedflation” has boosted US profit margins and delayed the recession, but interest rates are no longer effective. He explains that historically, corporate loan…
Will the Fed raising interest rates on next meeting?
The Federal Open Market Committee (FOMC) is ready to resume raising interest rates after leaving them unchanged in June for the first time in 15 months. At their July 25-26 meeting, officials may raise interest rates by another 25%, marking their eleventh increase since March 2022. The slowest growth since August 2021 was 3%, an…
The reserves of US Bank’s remained stable
The US Treasury’s liquidity has not drained, but reserves have risen, easing concerns that bond splurge may constrain credit. The Fed Treasury General Account has grown by $460 billion since early June. Government borrowing usually decreases demand for the Fed’s overnight reverse repo program (ON RRP), which helps money market funds lend to the Fed.…
Excellent record of net profit on India’s ICICI Bank
India’s ICICI Bank posted a record first-quarter net profit of 96.48 billion rupees ($1.18 billion), exceeding analysts’ forecast. Net interest income rose 38%, and net interest margin rose to 4.78%. Retail loans led 20.6% of loan growth, while deposits climbed 17.9%. Indian loan growth remains in double digits, with banks increasing their deposit base amid…
India Yes Bank’s reported a smaller than expected net profit
Yes Bank reported a smaller-than-expected quarterly net profit, with a 10.3% increase to 3.43 billion rupees in the April-June quarter. The bank set aside more money for ageing bad loans and security revenues, offsetting higher net interest income. The bank expected bad loan recoveries and upgrades of around 50 billion rupees for the April-starting financial…
India Kotak Mahindra Bank’s profit surpassing analyst’s forecast
Kotak Mahindra Bank reported a 67% year-on-year increase in quarterly net profit, reaching 34.52 billion rupees ($421.1 million) in the three months ending June 30, surpassing analysts’ average forecast. The bank’s net interest income rose 33%, and its net interest margin (NIM) rose to 5.57% from 4.92% a year earlier. The bank’s NIM will moderate…
Will regional banking crisis over now?
Western Alliance (WAL) experienced a 7% increase in deposits in the second quarter, indicating that the drama is over. However, investors still face challenges, as most banks paid more for deposits, lowering profits. Twelve regional lenders, including PNC, Truist, Western Alliance, and Zions, lowered their revenue or loan profit expectations for the year. These institutions…
The ECB will need weekly liquidity data from banks in order to assess their health, according to the supervisory director.
The ECB will require banks to provide weekly liquidity data starting in September to assess their ability to withstand shocks as interest rates increase. The supervisory chief, Andrea Enria, emphasized that European banks are stronger but financial markets are still in a delicate phase due to the Ukrainian crisis, inflation, and rising interest rates. The…