SINGAPORE - A number of major banks worldwide announced their quarterly results on Thursday (July 28), with some announcing surprise profits while others taking a hit in revenue.
Here's a quick look at how the banks fared.
Singapore's second-largest bank by assets reported an earnings drop in the second quarter, as insurance income slipped amid the choppy investment market while non-performing loans (NPLs) remained an issue.
Revenue dropped 8 per cent year on year to S$2.05 billion for the three months to June 30, pushing net profit for the period down 15 per cent to S$885 million. The major drag on group performance was a 66 per cent fall in Great Eastern earnings contribution to S$78 million, driven by lower investment income and unrealised mark-to-market losses in the insurance portfolio. And with fee and commission income down 5 per cent to S$417 million, total non-interest income was 16 per cent lower at S$788 million,
A better performance in its trading activities boosted second-quarter earnings at United Overseas Bank (UOB), Singapore's third-biggest bank by assets.
UOB logged a 5.1 per cent hike in net profit to S$801 million for the three months to June 30 compared with the same period last year. Net interest income marginally dipped 0.2 per cent to S$1.21 billion as the effects of loan growth were offset by net interest margins falling nine basis points to 1.68 per cent.
The standout performer was non-interest income, which grew 13.9 per cent to S$813 million, on the back of a better performance from trading activities.
Net profit in the first half marginally grew 0.2 per cent to S$1.57 billion, while total income rose 2.8 per cent to S$3.99 billion.
Swiss multinational Credit Suisse Group unexpectedly returned to profit in the second quarter, with all operating units contributing to earnings, as chief executive officer Tidjane Thiam eliminated hundreds of jobs and cut costs. Net income was 170 million Swiss francs (S$233 million) in the three months through June, a reversal from a 302 million-franc loss in the first quarter, although it still meant an 84 per cent drop in the year.
Net revenue, excluding the strategic resolution unit, slipped 16 per cent to 5.5 billion francs in the second quarter. The bank reduced costs 6 per cent in the year, cutting risk-weighted assets at the non-core unit by US$9 billion from the previous three months. It eliminated another 580 jobs in the quarter as part of a plan to cut 6,000 positions this year.
Japan's SoftBank said on Thursday net profit jumped 19 per cent in its fiscal first quarter owing to gains from selling some of its stake in Chinese e-commerce giant Alibaba, offsetting losses at US mobile unit Sprint.
The company, which also pointed to upbeat results in its domestic business, reported a 254.16 billion yen (S$3.25 billion) net profit in April-June. The profit largely came from booking some of its partial sale of Chinese ecommerce giant Alibaba.
SoftBank, which said its revenue in the quarter rose 3 per cent to 2.13 trillion yen, surprised markets this month when it announced the whopping US$32 billion purchase of British iPhone chip designer ARM Holdings.
BNP Paribas, France's biggest bank, on Thursday signalled lower revenue at its cash cow French retail operation as it feels the pinch from low interest rates and declining product fee income. Chief executive Jean-Laurent Bonnafe said they will adapt in line with other retail banks that are trying to boost efficiency and develop digital strategies. Net income was €2.56 billion (S$3.80 billion), up 0.2 per cent from a year earlier. Total revenue rose 2.2 per cent to €11.32 billion, compared with the €11 billion average estimate from seven analysts. The bank recorded a €597 million pre-tax gain from selling its stake in Visa Europe.