Financial Industry 07 (Jul 18 - Dec 24)

[winston]

Buying These Stocks Today Could Lead to Fantastic Returns

by Chris Igou

SPDR S&P Regional Banking Fund (KRE)

Obviously, this is a scary situation. And, of course, things could get worse before they get better. But history shows the biggest rewards await investors who act during these scary times.

It’s smart to wait for prices to reverse before getting in. But regional banks are a sector you should have on your radar in the coming weeks.

Source: DailyWealth.com

https://dailytradealert.com/2023/03/23/ ... c-returns/

[winston]

U.S. Banks are sitting on $1.7 trillion in unrealized losses, research says. That’s not a problem—until it is

by Will Daniel

U.S. banks’ assets have lost 10% of their value over the past year alone.

Additionally, of the $17 trillion in total U.S. bank deposits, nearly $7 trillion are currently not insured by the FDIC.

$1 trillion in deposits were pulled from the “most vulnerable” U.S. banks after SVB’s collapse.

Source: Fortune

https://finance.yahoo.com/news/u-banks- ... 12318.html

[winston]

These Stocks Are Likely to Be Higher in the Weeks Ahead

by Jeff Clark

Financial Select Sector Fund (XLF) - 14% drop in just two weeks.

KBW Nasdaq Bank Index (BKX)

If the same script plays out for the current buy signal, bank stocks should be higher by mid-May.

Source: Jeff Clark Trader

https://dailytradealert.com/2023/03/24/ ... eks-ahead/

[winston]

Here’s the Real Banking Crisis (It’s Just Getting Started)

by Shah Gilani

Banks can borrow from the Federal Reserve’s Discount Window and get FHLB (Federal Home Loan Bank) advances to meet withdrawals.

At the beginning of 2022, U.S. banks had some $24 trillion in assets, including $6 trillion in Treasuries and other fixed-income securities, and $11.2 trillion in loans, against a deposit base of $19 trillion. Barely half of this is insured by the FDIC.

Source: Total Wealth

https://dailytradealert.com/2023/03/24/ ... g-started/

[behappyalways]

瑞信賤賣給瑞銀 德意志債券遭拋售 下張骨牌? TVBS文茜的世界財經周報 20230326
https://m.youtube.com/watch?v=pDuQH13EnHA

[winston]

Profits rise at China's big banks but so do bad loans

Source: The Standard

https://www.thestandard.com.hk/section- ... -bad-loans

[winston]

Chinese banks brace for tough year as low interest rates, property crisis hit profitability

Last week major banks reported declining net interest margins, a crucial measure of their profitability

The net interest margins of state-owned banks declined by an average of 24 basis points last year, Jefferies’ analysts said

by Elise Mak and Pearl Liu

Source: SCMP

https://www.scmp.com/business/banking-f ... fitability

[winston]

China Strategy: Diverging trends among Chinese banks

Chinese banks as a sector posted a muted 4Q22 results, with the decline of pre-provisions operating profit (PPOP) accelerating to -9% year-on-year (YoY), with the diverging trend in PPOP growth between large state-owned banks and major joint-stock banks (JSBs) continuing.

The underlying fundamentals for major banks have softened faster-than-expected due to ongoing net interest margin (NIM) compression and a persistent weakness in fee income. Earnings growth for most large state-owned banks and major JSBs held up well owing to a reduction in provisions.

MSCI China Financials Index has risen 2.7% year-to-date (YTD), underperforming MSCI China Index by about 2.1 percentage points (ppt).

With a relatively high 2022 dividend yield of more than 8%, the sector offers a once-a-year tactical trading opportunity in the near-term.

Looking ahead, we expect Chinese banks to underperform the broader market post ex-dividend date (which will be in end-June/early-July) owing to deteriorating fundamentals as NIM compression persists.

Within Chinese banks, we prefer China Construction Bank (CCB, 939 HK, Fair value HKD7.0) as it posted the most balanced set of results in terms of earnings growth, NIM, capital levels and return on equity.

For income-oriented investors, Telcos and Energy could be considered as alternatives.

We prefer telcos as it also offer a potential upside riding on the “Digital China” policy priority.

Source: OCBC

[winston]

Singapore Banks Are Reporting Their Earnings Next Month: 3 Things to Watch Out for

By Royston Yang

Source: Smart Investor

https://thesmartinvestor.com.sg/singapo ... h-out-for/

[winston]

Apple and Goldman Sachs offer US savings account with 4.15% annual interest

by Joshua Franklin and Patrick McGee

The California tech giant and Wall Street bank, on Monday launched a new savings account yielding 4.15 per cent a year, having first announced the product in October.

This is well ahead of the average US savings account rate of 0.37 per cent.

Customers have pulled about $800bn in deposits from US commercial banks since March last year when the Fed first started to lift rates after lenders kept deposit rates relatively low while charging more for loans.

Source: Financial Times

https://www.ft.com/content/bf566eee-979 ... hoo/auddev