Financial Biz Cheat Sheet: Euro Bank Earnings in the Spotlight
UBS Inc (NYSE:UBS) reported its third quarter net profit dropped 39 percent to $1.02 billion Swiss francs ($1.13billion) but exceeded analysts’ forecasts of $276 million francs. The quarter’s revenue was $6.41 billion as compared to $6.66 billion from the previous year. The company’s net profit benefited from a $1.765 billion franc gain on the value of UBS’s debt but was affected by the firm’s $2 billion loss from unauthorized trades.
Deutsche Bank (NYSE:DB) saw a EUR $777 million ($1.1 billion) profit in the third quarter vs. a EUR $1.2 billion loss from the previous year. This beat a EUR $425 million forecast. Net revenue jumped 47 percent to EUR $7.3 billion, but it was flat without the firm’s Postbank charge. Current challenges include a bank exposure of EUR $4.79 billion of sovereign debt from the troubled countries of Greece, Italy, Spain, Ireland and Portugal.
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The UK’s Financial Services Authority fined Credit Suisse (NYSE:CS) UK Limited $5.95 million pounds ($9.5 million) for suitability issues from the sale of “structured capital-at-risk products.” The regulatory agency found the firm did not adequately assess customers’ attitudes toward risk and it failed to furnish reasonable evidence that the product was suitable for a customer and to effectively monitor staff. Credit Suisse will review whether customers may receive compensation.
The financial sector (NYSE:XLF) is having a bad day. Regional banks (NYSE:KRE) are dropping including Regions Financial Corporation (NYSE:RF) and Zions Bancorp (NASDAQ:ZION) along with the asset managers T.Rowe Price Group Inc (NASDAQ:TROW) and Franklin Resources (NYSE:BEN), after quarterly earning reports reflected customer and investor strains. Not to be excluded from today’s gloomy party are these Dow financials: Bank of America (NYSE:BAC), JPMorgan & Chase (NYSE:JPM), The Travelers Companies (NYSE:TRV) and American Express Company (NYSE:AXP).
The new hot spot for Wall Street Bankers may be regional banks including KeyCorp (NYSE:KEY), Fifth Third (NASDAQ:FITB), SunTrust (NYSE:STI), and US Bancorp (NYSE:USB). With the financial industry still seeing job and pay cuts, these banks aren’t feeling the pain as build up their investment banking departments.
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