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CNBC
17 hours ago
- Business
- CNBC
As Wall Street awaits the Fed's stress test results, this bank stock may come out on top
The Federal Reserve will release its annual stress test results next Friday — a high-stakes assessment that could cost or save Wall Street's largest banks billions. A solid report card from regulators could pave the way for increased share buybacks, higher dividends, more loan growth and new investments for Club holdings Wells Fargo , Goldman Sachs and Capital One . The Fed subjects U.S. banks with at least $100 billion in assets to the annual year exercise, which simulates severe economic downturns to assess how well firms can withstand financial shocks and how much additional capital each must hold to avoid insolvency. Ahead of 2025's results, Wall Street analysts are striking a hopeful tone and say regulators will lower their stress capital buffers for many of the nation's top banks. Regulators use the stress capital buffer, or SCB, to help determine how big of an emergency fund that each bank needs to keep on hand in case of a financial crisis. These requirements should come down this year because the stress test includes "less onerous scenarios" versus the prior assessment, according to analysts at Jefferies. Compared to 2024, banks will be tested in situations where there's a smaller decline in the country's gross domestic product, a smaller rise in the unemployment rate, and less aggressive declines in asset prices. Deutsche Bank analysts also expect regulators to loosen up. "Recall last year's stress test was really hard with capital requirements rising. … We could see a reversal of most or even all of that this year in our view," the firm wrote in a note this month. "We expect the stress test to be positive for the broader bank group." The stress capital buffer is just one of the components used to calculate each bank's overall Common Equity Tier 1 (CET1) ratio requirement, which is expressed as a percentage and acts as a floor that must be met. Each firm has a baseline CET1 ratio of 4.5%, a measurement of a bank's core capital — largely common stock and retained earnings — versus its risk-weighted assets like loans and other investments. On top of that, they must also hold add another minimum 2.5% for its stress capital buffer, which means every big bank must have an overall CET1 ratio of at least 7%. For the largest banks, known as Global Systemically Important Banks, like Goldman and Wells, an additional capital surcharge is applied between 1% to 4.5%. All of our banks have CET1 ratios much higher than their minimum. This means that Goldman, Wells and Capital One all have adequate amounts of high-quality capital compared to their risk-weighted assets — and, as a result, are in a position to return some of their excess capital to investors. At the end of the first quarter of 2025, Goldman Sachs' CET1 ratio was 14.8% versus the required 13.7%. Wells Fargo's was 11.1%, above its required 9.8%, while Capital One was at 13.6% versus its floor of 10%. WFC YTD mountain Wells Fargo (WFC) year-to-date performance Some Wall Street analysts expect Wells Fargo to be a standout among peers when the 2025 results are released. Deutsche Bank, for example, predicted the bank will be "a winner" from the stress tests, in large part because of what happened with the stress capital buffer component in last year's exam. In 2024, regulators required Wells Fargo to keep more capital in the emergency fund without "obvious reasons for such a large increase in our view," analysts said. Now that the stress test is seemingly easier and Wells' exposure to troubled industries like commercial real estate has improved, it may get more relief from the Fed than peers. "WFC has been working through [commercial real estate and] office exposure and the underlying earnings power of the company has improved," the analysts said. If Wells Fargo does get permission to operate with a smaller capital cushion, that will free up resources for other uses — including, perhaps, returning some of it to shareholders. Even after last year's somewhat surprising stress test results, Wells Fargo was still able to propose a 14% dividend increase. The bank can also lend more if its stress capital buffer is lower, boosting revenues for its consumer banking and lending division. More flexibility in capital can also lead to expansion in other businesses. That includes growing Wells Fargo's budding investment banking division, which we've said is a great opportunity for the bank to further diversify its revenue streams and reduce its reliance on Fed-influenced interest-based income. With less capital tied up, Wells Fargo could offer more or larger bridge loans for the mergers and acquisitions it's helping to close. The firm could also commit more of its balance sheet to bond issuances or underwriting initial public offerings as a result. GS YTD mountain Goldman Sachs (GS) year-to-date performance There's also benefits for Goldman Sachs. Jefferies said big brokers like Goldman are "built better" in 2025 and are "poised for improvement" after the Fed imposed higher capital requirements last year. The analysts cited Goldman's exposure to risk-weighted assets last year, which should "ideally keep the door open for buybacks to at least continue at recent levels and/or accelerate." Goldman authorized $40 billion share buyback program in April. Additional capital allows the firm to grow its wealth management division further to help offset a muted investment banking business. Goldman's wealth management business saw a double-digit revenue increase in fiscal year 2024. COF YTD mountain Capital One (COF) year-to-date performance Finally, there's Capital one. This is the first time the credit card issuer will be subject to the test since completing its acquisition of Discover Financial last month. Capital One now has an even bigger balance sheet following the $35 billion deal, so we're looking forward to seeing what kind of share repurchases management announces after results. "Overall, COF is well capitalized as a combined entity, and has ample flexibility to increase CET1 levels," Jefferies analysts said. In general, there are still some question marks for the future of these tests and their implications for the banking sector. The Fed proposed several changes earlier this year to stress tests requirements following pushback from Wall Street executive after 2024's more stringent rules. New changes could include averaging two year results and giving banks an extra three months to adjust to new capital buffer requirements. These are pending, however, and will not be included in this year's results. There are trade-offs between these new requirements, though, according to Columbia Business School finance professor Yiming Ma. It's a delicate balance of making sure the banks can do their job effectively and protecting the industry from another financial crisis. "If you ask the banks, they will always say the requirements are too harsh. If you ask the regulators, they say we need more requirements," Ma told CNBC Monday. "I think the truth is somewhere in between. You want hard enough requirements that help you prevent the next financial crisis, but you also don't want requirements to be too big to prevent banks from doing their day-to-day business." Regardless of the regulatory uncertainty, our bank names have had a string of good news recently. Wells Fargo had its $1.95 trillion asset cap removed earlier this month after a seven-year long regulatory punishment tied to misdeeds that predated CEO Charlie Scharf's tenure. It's a big catalyst for the financial stock, and a key reason we first started a position in Wells. Meanwhile, Goldman's crucial investment banking division looks to be improving as more companies decide to go public. On Tuesday, for example, Autodoc said that its upcoming public debut will value the online car parts retailer at nearly $3 billion. This follows other big name IPOs like Chime and eToro in recent weeks. Finally, in addition the closing of the Discover deal, Capital One's customers appear to be holding up well despite a murky economic backdrop and questions about the health of consumers. CEO Richard Fairbank said last week that the company's delinquency trends have steadily improved since the fourth quarter of 2024. (Jim Cramer's Charitable Trust is long WFC, GS, COF. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Time of India
a day ago
- General
- Time of India
IISER IAT 2025 results to be announced soon at iiseradmission.in; Check steps to download rank card and more
The IISER Aptitude Test (IAT) 2025 result is expected to be released shortly, though the official date has not yet been confirmed. Candidates who appeared for the exam will be able to download their rank card by logging into the official portal using their application number and password. When Will the Final Answer Key Be Released? The final answer key for IAT 2025 will be published soon on the official IISER admissions website. The rank card will be generated based on this final key and will include each candidate's All India Rank (AIR) and Category Rank. Steps to Check IISER IAT 2025 Result To access your IISER result, follow these instructions: by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo Step 1: Visit the official website: Step 2: Click on the link labelled 'IISER Entrance Exam Results SCB' Step 3: You'll be redirected to the login page Step 4: Enter your Email ID and Password Live Events Step 5: Your scorecard will be displayed on the screen Step 6: Download it and take a printout for future reference What Happens After the Result? Once results are declared, qualified candidates will be invited to participate in the IISER counselling process , which is tentatively scheduled to begin in the fourth week of June 2025. As part of the counselling, candidates will be required to upload necessary documents such as: Class 12 marksheet Caste certificate (if applicable) Candidates are advised to regularly check the official IISER website for the latest updates and counselling-related announcements.
Time of India
3 days ago
- General
- Time of India
IISER IAT Result Date 2025: Check how to download rank card and what's next
The IISER 2025 result is expected to be released soon, although the official date has not yet been announced. Candidates who appeared for the IISER Aptitude Test (IAT) 2025 will be able to download their rank card by logging into the official website using their application number and password. When Will the IISER 2025 Final Answer Key Be Released? The final answer key for IAT 2025 will be published on the IISER admissions website soon. The IISER 2025 rank card will be prepared based on this final answer key. The result will mention each candidate's All India Rank (AIR) and Category Rank. How to Check IISER Results 2025 on Follow these steps to check your IISER Entrance Exam result: Visit the official IISER admissions website: Click on the link titled 'IISER Entrance Exam Results SCB' You'll be taken to a new page Enter your Email ID and Password to log in Your scorecard will appear on the screen Download it and take a printout for future use What Happens After the Result? The rank card is important for the next step, counselling. Only candidates who score well in the IAT 2025 will be able to take part in the IISER counselling process, which is expected to begin in the fourth week of June 2025. Candidates will need to upload documents such as: Class 12 mark sheet Caste certificate (if applicable) Make sure to keep an eye on the official website for updates. Live Events
Korea Herald
13-06-2025
- Health
- Korea Herald
Fondazione Ricerca e Innovazione Cardiovascolare Completes Enrollment in TRANSFORM II RCT, A landmark study comparing MagicTouch SCB vs DES in Native Coronary Vessels
CLEVELAND, June 13, 2025 /PRNewswire/ -- Primary Investigator, Bernardo Cortese MD, proudly announces the successful completion of patient enrollment in the TRANSFORM II randomized controlled trial (RCT). This pivotal study aims to evaluate the safety and efficacy of the MagicTouch Sirolimus-Coated Balloon (SCB) compared to an everolimus-eluting stent (EES) in treating de-novo coronary vessels. TRANSFORM II (Sirolimus-Coated Balloon Versus Drug-Eluting Stent in Native Coronary Vessels) is an investigator-driven trial sponsored by Fondazione Ricerca e Innovazione Cardiovascolare in Milano, Italy, and has now achieved its target enrollment of >1,820 patients. The final patient was enrolled on 6 th June 2025, marking a major milestone for the trial. Led by Study Chairman Prof. Bernardo Cortese (University Hospitals Harrington Heart & Vascular Institute, Cleveland, USA) and a distinguished steering committee, TRANSFORM II is one of the largest global randomized controlled trials evaluating drug-coated balloon and has enrolled patients from 52 centers across Europe, Asia and South America. Key features of the TRANSFORM II trial include: Prof. Bernardo Cortese, Study Chairman of TRANSFORM II, commented: "After 3 and a half years we were able to complete the enrollment in TRANSFORM II trial, a study that involved 52 centers across 3 continents, and this is amazing. The effort put by our Team in Fondazione RIC and each Investigator of the study led to a quite fast enrollment in such a big, ambitious study. Our goal is to advance the adoption of DCB in the coronary space, testing this sirolimus DCB with the most studied and used DES, in a daily patient population. Along with the guidance of the recently published DCB ARC guidelines, we are paving the route for the modern angioplasty era!". Coronary vessels of this size (which account for roughly 80% of patients undergoing percutaneous coronary interventions) present unique treatment challenges. Currently, interventional cardiologists must often choose a permanent implant namely a drug-eluting stent — effectively "caging" a small vessel — which may compromise long-term outcomes. The head-to-head comparison of MagicTouch SCB against a current standard of care (the EES family of drug-eluting stents) in TRANSFORM II is poised to provide critical evidence for an alternative approach. This trial has the potential to reshape treatment practices by establishing drug-coated balloons as the next viable option for patients with coronary artery disease. Drug-coated balloon technology has long been viewed as a promising solution for small, de-novo coronary lesions, and sirolimus is a viable alternative to the first generation of DCB eluting paclitaxel. Data from this large-scale RCT are expected to support a paradigm shift towards broader use of drug-coated balloons. Implanting a drug-eluting stent in a tiny artery is far from ideal for both patients and physicians, so a rigorous study validating the use of SCB was needed. TRANSFORM II is set to fulfill that need, with initial 12-month outcomes anticipated to shed light on the long-term benefits of avoiding permanent implants in coronary vessels. Dr. Manish Doshi, Founder & Managing Director of Concept Medical Group, commented: "The completion of patient enrollment in TRANSFORM II is a significant milestone in our mission to bring innovative drug-delivery technologies to the forefront of interventional cardiology. We are proud to scientifically support one of the largest global randomized trials evaluating sirolimus-coated balloon technology. This achievement reflects our commitment to clinical excellence, scientific rigor, and ultimately, better outcomes for patients around the world." About MagicTouch SCB The MagicTouch SCB, developed by Concept Medical Inc., utilizes proprietary Nanoluté technology to deliver sub-micron particles of sirolimus encapsulated in a biocompatible carrier, ensuring deep penetration into the vessel wall. The device has received CE Mark approval in Europe alongwith Breakthrough Device Designation & IDE Approval from the U.S. FDA for the treatment of small coronary vessels and in-stent restenosis with ongoing clinical trials. About Concept Medical Inc. Concept Medical Inc., headquartered in Tampa, Florida, has a global presence and is dedicated to enhancing patient care through cutting-edge research and development of drug-delivery technologies. Its proprietary platforms are designed to deliver pharmaceutical agents across vascular luminal surfaces with unparalleled precision. Concept Medical is the developer of the MagicTouch family of Sirolimus-Coated Balloons (SCB) – the world's first and most utilized SCB technology – well recognized for its versatility and efficacy in treating coronary and peripheral artery disease. The revolutionary MagicTouch and Abluminus product lines have been used to treat over a million patients globally, setting a new standard for vascular therapy.
Time of India
13-06-2025
- Health
- Time of India
Study evaluating efficacy of Sirolimus-Coated Balloon against Drug-eluting Stent completes patient enrollment
Cleveland: An Italy-based research foundation, the Lodi has announced the completion of patient enrolment for a trial evaluating the safety and effectiveness of Sirolimus-Coated Balloon (SCB) in comparison with the Drug-eluting Stents. The trial has enrolled a total of 1,832 patients from Europe, Asia, and South America and designed to evaluate the safety and effectiveness of the MagicTouch Sirolimus-Coated Balloon (SCB) in comparison with the Everolimus-Eluting Stent (EES) in patients with De-Novo Coronary Artery Disease . 'After 3 and half years, we were able to complete the enrolment in TRANSFORM II trial , a study that involved 52 centers across 3 continents and will test this Sirolimus DCB with the most studied and used DES, in a daily patient population,' said Dr Bernardo Cortese, the Study Chairman. The head-to-head comparison is undertaken to determine whether drug-coated balloon technology can be widely adopted for primary treatment of small coronary lesions—which currently accounts for nearly 80 per cent of all Percutaneous Coronary Interventions . Developed by Concept Medical in delivers sub-micron particles of sirolimus encapsulated in a biocompatible carrier, ensuring deep penetration into the vessel wall. The device has obtained Breakthrough Device Designation from the US FDA for the treatment of small coronary vessels and in-stent restenosis.
