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US bank BB&T Corporation has reported its third quarter financial results, recording a $157m profit for the quarter, equivalent to $0.23 per diluted common share.
This is substantially down on Q3 2008, when the firm made $362m net income, equating to $0.65 per diluted common share.
President and Chief Executive Officer Kelly S. King has stated that the present performance is mostly good, particularly singling out the 16.1% rise in revenue as a notable plus in the results.
However, King went on to say that the high cost of credit continued to be a drag on the bank’s per
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formance.
King added that the firm was excited about the acquisition of Colonial Bank, which occurred during August, and the progress of the plans to integrate it with BB&T.
In the early stages of the reporting season US banking sector has had a slightly mixed bag, with most firms that have reported enjoying profits, Citigroup making modest gains compared to larger profits at Goldman Sachs and JPMorgan Chase.
However, Bank of America did suffer a loss of $1bn, an indicator that the sector has yet to properly recover from the depths of the financial crisis.
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Gatehouse Bank, the Shariah-compliant investment bank based in the City of London, has become the first Islamic financial institution to join Paris Europlace.
Paris Europlace promotes the French capital’s status as a financial centre, and Gatehouse Bank has been invited to contribute to its Islamic Finance Commission.
Gatehouse Bank will be able to engage with clients and other banks in France in a broad range of product areas, including Shariah Advisory services, real estate, wealth management, asset management, treasury, capital markets and off balance sheet investments.
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>Chief Executive Officer Richard Thomas has stated that France has a great future for Islamic finance, given its substantial Muslim population and trade links to Muslim economies.
Antoine R. Chemali, Associate VP, added that innovative development of financial products lay at Gatehouse Bank’s heart, and that the firm had already been contacted by some French banks because of this very reason.
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Bank of America has announced it incurred net losses totalling $1bn during the third quarter.
The diluted loss per share, after deductions, stood at $0.26.
During the corresponding period last year the bank enjoyed net profits of $1.2bn, equivalent to $0.15 per share.
For the first nine months of the year the firm made a net profit of $6.5bn, equating to $0.39 per share, up from the $5.8bn net profit made during the first nine months of 2008.
Bank of America has attributed the loss to continuing weakness in the US economy, and to pressure on the consumer resulting in higher
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credit costs.
Chief Executive Officer and President Kenneth D. Lewis has said that revenue in most areas has held up well, and went on to say that there were some positive signs for the future.
Other banks reporting their Q3 results recently include Goldman Sachs and JPMorgan Chase, both of whom enjoyed profits.
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At this point, traditional growth sectors like materials and consumer discretionary stocks may not be the bargains you would expect.


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Plans to ban the sale of payment protection insurance (PPI) alongside a consumer credit agreement could come unstuck.
PPI is intended to cover the repayments on an unsecured loan if the borrower loses their job or becomes too ill to work.
The insurance has been the subject of controversy for years with consumer groups claiming that the market is uncompetitive and the cover frequently mis-sold.
Following a Competition Commission enquiry, the sale of single premium PPI (whereby the total cost of the insurance was added to the debt) has already been banned.
However, the Commis
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sion proposed introducing an outright ban on the sale of PPI alongside a loan and for seven days thereafter, in October 2010.
Barclays and Lloyds Banking Group appealed against the decision, disputing some of the findings in the Commission’s enquiry and challenging the scope of the market definition set by the Commission.
Barclays also claimed that the watchdog failed to take recommendations made by the bank into account in coming to its decision.
The Appeal Tribunal has now asked the Commission to reconsider the ban or justify its position further.
In other PPI news, the Financial Services Authority has recently ordered the UK’s banks and building societies to review their sales of single premium PPI and compensate consumers identified as having been mis-sold the insurance.
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After a year of difficult meetings with worried clients, five planners discuss the hard questions they faced and the answers they gave.


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Citigroup has released its financial results for the third quarter of this year, during which time it made a net profit of £101m, and a net loss per share of $0.27.
The bank generated revenues of $20.4bn, and incurred $8bn in net credit losses.
Vikram Pandit, Chief Executive Officer, has stated that the action the bank has taken during the last three months has helped to lay the foundations for future strength by bolstering Citigroup’s capital and liquidity position.
Pandit went on to say that the bank’s focus in the immediate future would be sustainable growth, cou
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pled with paying back TARP and supporting the growth of the US economy.
Earlier this week Goldman Sachs reported net profits in Q3 of $3.19bn, a figure topped by JPMorgan Chase which enjoyed profits of $3.6bn.
However, Bank of America incurred a $1bn loss, showing that whilst the Western banking sector is not in the dire straits it has been recently, it is still recovering from the financial crisis.
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Nationwide is proposing to raise cash in a sale of UK residential mortgage-backed securities (RMBS).
The building society has appointed Barclays Capital, Citigroup and JP Morgan to manage the issue, which will be launched once promoted to investors and when market conditions are judged to be right.
Bad debt resulting from investments in mortgage-backed securities has been blamed for the credit crisis, which erupted as the full extent of US sub-prime mortgage debacle was revealed.
Nationwide’s strategy is therefore seen as evidence that the RMBS market may be in recovery, h
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aving dried up suddenly last year and left mortgage lenders unable to raise funds for new business.
The Nationwide issue, called Silverstone 2009-1, is backed by triple A rated UK mortgages.
Last month, Lloyds Banking Group made a similar move, with its first issue of mortgage-backed bonds in over a year.
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