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Morning Briefing

Morning Briefing

Bank of America posted stronger than expected third quarter results with a profit of $4.51 billion, compared with a loss of $232 million a year ago, as it distanced itself from the legal costs that impacted 2014 results.

Bank executives said BoA was reaping the benefits of responsible cost cutting and its focus on high-quality customers. Revenue fell about 2.5 percent to $20.68 billion from $21.21 billion in the previous year. Adjusted revenue was $20.91 billion.

Wells Fargo's results marginally exceeded analysts expectations with the bank earning $5.8 billion, or $1.05 a share, in the third quarter, up one percent on the previous year. Revenue for the third quarter was $21.9 billion, three percent higher than the $21.2 billion reported in the third quarter of 2014. Return on equity was 12.6 percent — significantly ahead of the seven percent return on equity figure for Bank of America — but down on last year when it was 13.1 percent.

The Times reports this morning that hundreds of staff at HSBC's investment banking division in London have had a ten percent pay cut imposed and been told to take two weeks unpaid leave by year end. The measures apply to all contract workers in HSBC's global banking and markets division.

In India, investigations into alleged fraudulent overseas remittances conducted through the Bank of Baroda continue following the arrests of six people on Tuesday, including two Bank of Baroda officials and one HDFC Bank official.

A branch of the Industrial and Commercial Bank of China opened in Mexico yesterday, becoming the first Chinese financial subsidiary in the country. ICBC Mexico is intended to facilitate investment and trade between the two countries.

A five-day 'app-only' sale organised by Indian e-commerce company Flipkart started on Tuesday and is reported to be selling 25 products per second, as e-commerce growth continues to surge in India and elsewhere. Shoppers using select debit and credit cards can get ten percent cashback on purchases on certain days during the sale.

In Nigeria, Fidelity Bank has revealed plans to launch GreenMall, an online marketplace for SMEs with fully integrated e-commerce capabilities for online payment engine, delivery logistics, advertising boards, and business networking opportunities.

Finally, newly hired Korean bankers earn twice as much as their Japanese counterparts regardless of their productivity according to a Deloitte study on earnings of bankers in their first year in five Asian nations. Korean bankers earned 42.57 million won ($37,655), 76 percent more than the 24.11 million won earned by their Japanese counterparts.

The Korean bankers' earnings were the the highest among the countries surveyed, also beating Hong Kong's 41.68 million won, Singapore's 40.29 million won, and Taiwan's 11.99 million won.

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