Latest news with #banking
Bloomberg
an hour ago
- Business
- Bloomberg
Ex-Citi Wealth Management Executive to Buy Small Argentine Bank
Eduardo Savastano, a former veteran in Citigroup Inc. 's wealth management division, is preparing to acquire almost all of Banco Masventas, a small regional bank in northern Argentina, according to a person with direct knowledge. The transaction has already been submitted to Argentina's central bank, according to the person, who asked not to be named discussing an ongoing transaction. The deal is expected to involve around 90% of the company, although the amount paid for the acquisition remains undisclosed, he said.
New York Times
an hour ago
- Business
- New York Times
Bank Transfer Signals Syria Is Making Strides in Ending Economic Isolation
Syria took a small but significant step toward rejoining the international banking system with the announcement on Thursday that the country had completed its first electronic transfer in 14 years with a Western bank. The transfer, to a European bank earlier this week, was considered a sign that despite the escalating tensions in the Middle East, a few green shoots were emerging in the effort to foster renewed economic life in Syria after its devastating civil war. 'This step represents gradual progress toward reintegrating the Syrian financial system into global financial channels,' Abdulkader Husrieh, the governor of Syria's Central Bank, said in a statement on Thursday confirming the transaction. Symbolically, reactivation of the SWIFT system, the acronym for the global network for electronic transfers between banks, was one of the first concrete steps to indicate that Syria was moving beyond an extended period of isolation from the international financial community. Syrian banks were cut off from the international system through sanctions imposed soon after the ruling Assad regime began its long, brutal crackdown against Syrian pro-democracy demonstrators in 2011, which led to a 13-year civil war. The government of President Bashar al-Assad of Syria was ousted in December, when rebels took the capital, Damascus. 'This transaction marks the beginning of a new era for Syria,' said Jassem Ajaka, a Lebanese economic expert. 'This first SWIFT order symbolizes the end of sanctions and Syria's return under the umbrella of the international community.' Want all of The Times? Subscribe.
Yahoo
2 hours ago
- Business
- Yahoo
Banks reverse course, increase fossil fuel investments in 2024: report
This story was originally published on ESG Dive. To receive daily news and insights, subscribe to our free daily ESG Dive newsletter. The world's largest banks increased fossil fuel financing by $162.5 billion year-over-year in 2024, reversing course on decreasing investments in the sector — a trend they followed for the past two consecutive years — according to the latest Banking on Climate Chaos report released Tuesday. The release represents the 16th annual report documenting the largest banks' commitments to financing fossil fuels, with financing for fossil fuel expansion also increasing in 2024 in another reverse of trends. The report from the Rainforest Alliance Network, Sierra Club, Reclaim Finance and other climate organizations found that the 65 largest global banks committed $869 billion to fossil fuel companies in 2024, as 45 of the covered banks increased their year-over-year fossil fuel financing. The top four U.S. banks — JPMorgan Chase, Bank of America, Citi and Wells Fargo — represented 21% of total global fossil fuel financing accounted for in the report. RAN Senior Research Strategist Caleb Schwartz, one of the report's co-authors, called it a 'pretty significant year for the report given the reverse in trajectory. 'We're seeing a pretty substantial increase between 2023 and 2024, and we track these annual increases as an indicator of the banks' commitment,' Schwartz said in an interview with ESG Dive. 'Banks are putting money into fossil fuels, they're putting money into fossil fuel expansionism.' JPMorgan, Bank of America and Citi represented the top three financiers of fossil fuel expansion in 2024 and the top three financiers of fossil fuels overall last year, according to the report. The trio of U.S. banks also are three of the four banks who increased fossil fuel financing by more than $10 billion last year, along with British bank Barclays. U.S. banks contributed $289 trillion to fossil fuel financing in 2024, accounting for about one-third of the global financing covered in the report. The increased financing came as a number of large U.S. based banks departed from climate coalitions or otherwise walked back climate commitments. 'The retreat by U.S. banks from robust climate commitments is unacceptable, deeply irresponsible, and a clear capitulation to political pressure,' Sierra Club's Fossil-Free Finance Campaign Senior Strategist Jessye Waxman said in a June 17 release. 'Banks must shift away from risky financing and commit to reducing emissions via the companies they finance, with a genuine focus on helping to decarbonize the economy and support the urgent and necessary clean energy transition.' The report documents lending the 65 largest global banks made to 2,730 companies at the subsidiary level with fossil fuel businesses and 1,800 parent-level companies. The covered banks were given the opportunity to see and confirm their data before its publication, according to the researchers. RAN Policy Lead Allison Fajans-Turner, also a co-author of the report, told ESG Dive that despite banks adopting policies that prohibit project-level financing for fossil fuels, they often don't prohibit financing to the companies who own and develop such projects. She said that while the banks have said that funding is to help those companies prepare for the energy transition, 'third-party experts have looked at the transition plans that fossil fuel majors have penned and found that they are not credible.' 'Unfortunately, we're seeing banks put forward policies that have really large loopholes in them,' Fajans-Turner said in an interview. 'Either banks are not doing their due diligence to look into the credibility and the strength of the transition plans that their clients are presenting to them, or they have decided that they're going to lend to them anyways.' Recommended Reading Global banks have spent $6.9 trillion on fossil fuels since 2016: report Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
4 hours ago
- Business
- Globe and Mail
Can Nubank Repeat Its Brazilian Success in Mexico and Beyond?
The rapid expansion of Nu Holdings Ltd. NU in Brazil has set a high bar, but replicating that momentum in Mexico may prove more complex. Although Nubank Mexico launched with a more aggressive rollout than its Brazilian counterpart, growth metrics suggest a slower trajectory. When Nubank reached 10 million users in Brazil, it was growing at a robust 20% quarter over quarter. In contrast, Nubank Mexico is currently expanding at a more modest 10% quarterly pace, implying a timeline of nearly two years to double its customer base, compared to just one year in Brazil. However, regulatory tailwinds might change the equation. New banking licenses in Mexico could unlock access to payroll loans, currently dominated by a few legacy banks, and enable Nubank to offer deposit insurance. These advancements would not only diversify Nubank's revenue streams but also strengthen consumer trust, a crucial factor in financial services adoption. Yet the road ahead is still rocky. Mexican incumbents have had a front-row seat to Nubank's disruptive rise in Brazil. This has given them ample time to fortify their defenses, upgrade digital offerings and safeguard their customer base. Unlike in Brazil, where traditional banks were caught off guard, Mexican institutions are preemptively countering Nubank's market entry, likely slowing its path to dominance. In summary, while Mexico presents promising regulatory and market potential, Nubank may struggle to recreate the explosive growth it experienced in Brazil. Future success will depend on both strategic execution and the ability to navigate entrenched competition in newer markets. Peer Pressure? While NU continues to surge ahead in Latin America, U.S.-based peers like SoFi Technologies SOFI and Block XYZ are taking different routes to growth. SoFi is focusing on deepening customer relationships through bundled financial services like lending, investing and banking. Its strategy seems to emphasize lifetime value over rapid user expansion. Meanwhile, Block is sharpening its dual ecosystem approach, serving both individual users through Cash App and small businesses via Square. While both SoFi and Block are evolving steadily, NU's pace and scale of customer acquisition in emerging markets underscore a distinct momentum that sets it apart in the global fintech landscape. NU's Price Performance, Valuation & Estimates The stock has rallied 18% year to date, underperforming the industry 's 22% growth. From a valuation standpoint, NU trades at a forward price-to-earnings ratio of 18.88, well above the industry's 9.2. It carries a Value Score of D. The Zacks Consensus Estimate for NU's second-quarter 2025 earnings has been on the decline over the past 60 days. NU stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nu Holdings Ltd. (NU): Free Stock Analysis Report SoFi Technologies, Inc. (SOFI): Free Stock Analysis Report Block, Inc. (XYZ): Free Stock Analysis Report
Yahoo
5 hours ago
- Business
- Yahoo
2 Bank Stocks to Buy With $100 and Hold Forever
Bank of America is a stable banking giant growing at healthy rates. SoFi is in high growth mode, and it's already profitable. 10 stocks we like better than Bank of America › Bank stocks are a very specific category that stands out in a number of ways. Bank stocks are typically cash-rich and well-established, and they often pay dividends. They're the kind of reliable stocks that usually add value and protection to a portfolio because they provide an essential service that drives the economy. However, investors have seen during the past few years that not all bank stocks are alike, and some can actually be very risky. If you do buy the right ones, though, they can offer high value. Famed investor Warren Buffett loves bank stocks, and they make up a large percentage of his portfolio. I recommend Buffett stock Bank of America (NYSE: BAC) and newcomer SoFi Technologies (NASDAQ: SOFI) as two excellent bank stocks to buy right now. Bank of America has slipped from being Buffett's second-largest holding into fourth place after Berkshire Hathaway sold some shares last year, but it still accounts for 10% of the total portfolio, and investors shouldn't think that Buffett has lost confidence in this favorite. It's the second-largest U.S. bank by assets, giving it incredible financial strength. It's a bank you can count on, as millions of users rely on it to manage their finances. That consumer focus is likely one of the reasons Buffett likes it so much. Deposits increased 2% year over year in the 2025 first quarter. Despite its size and millions of customers, it added 250,000 consumer checking accounts in the first quarter, which was its 25th consecutive quarter of growth. It also added 1 million credit cards. BofA has invested in its digital channels, and its platform is resonating with U.S. customers. In its global wealth and investment management group, it opened 27,000 new accounts, and assets under management increased 7% from last year to $1.9 trillion. But it's increasingly turning toward institutional services in its expanded platform, driving higher growth and beefing up the overall business, making it an even more serious contender as a U.S. financial services giant. Banks typically do well when the economy is strong and people are making and spending money, and they feel pressure as a category when interest rates are high and the economy slows. The flip side of that is that banks make higher net interest income when interest rates are higher, although that doesn't usually outweigh the negative effect of lower borrowing. Bank stocks are cyclical that way, although since the economy is in growth mode more often than not, banks do well more often than not. In the current environment, where interest rates have remained high despite recent cuts, Bank of America is back in growth mode. Revenue increased 6% year over year in Q1, and earnings per share rose 18%. Common equity tier 1 (CET1), which is an indication of stability, was 11.8% in the quarter, or well above regulatory minimums, and return on common tangible equity was a healthy 13.9%. Bank of America also pays an attractive dividend that yields 2.3% at the current price and has increased 420% during the past 10 years. Finally, it's a bargain at the current price, trading at only 13 times trailing 12-month earnings. SoFi is a completely different kind of bank. It's young (and therefore less stable), it's all digital, and it doesn't pay a dividend. It's a growth stock, and it offers a different blend of benefits for investors. Since it's just starting out, SoFi has only $27 billion in deposits, or a tiny percentage of Bank of America's $1.9 trillion. However, that's a 40% year-over-year increase, versus 2% for BofA. It's growing quickly in every way. Members increased by 800,000 in Q1, or 34% year over year, to a total of 10.9 million, and adjusted net revenue rose 33%. It's now fully profitable, and adjusted earnings per share increased from $0.02 last year to $0.06 this year. Much of the growth is coming from the company's financial services segment. SoFi has expanded its platform from its origins as a lender to offer a full assortment of financial services, and this segment, which is fee-based and low-cost, is driving growth and profitability. It offers a broad array of non-lending services like bank accounts and investing tools, and it continues to upgrade the user interface and functionality to attract new business and boost engagement. Segment revenue increased 101% in Q1, while contribution profit was up 299%. The loan business is still SoFi's largest, and although it was under pressure last year, it's demonstrating strength right now. Credit metrics are improving, and the segment is growing, with revenue up 25% and contribution profit up 15%. SoFi isn't your typical bank stock, but it's on its way to becoming one. Digital is the future of banking, and SoFi has an edge since it was created to offer digital interaction from its foundation. Before you buy stock in Bank of America, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Bank of America wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,821!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $886,880!* Now, it's worth noting Stock Advisor's total average return is 791% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Bank of America is an advertising partner of Motley Fool Money. Jennifer Saibil has positions in SoFi Technologies. The Motley Fool has positions in and recommends Bank of America and Berkshire Hathaway. The Motley Fool has a disclosure policy. 2 Bank Stocks to Buy With $100 and Hold Forever was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
