BNY raised its medium-term profitability targets after reporting fourth-quarter earnings that exceeded analyst expectations on Tuesday.
Revenue in the final quarter rose 7 per cent to $5.18bn, beating analysts’ forecasts of $5.14bn, taking full year revenue to a record $20.08bn for fiscal 2025.
Net interest income increased 13 per cent, driven by higher investment yields, while fee revenue rose 5 per cent on the back of higher market values, net new business and increased client activity.
BNY’s securities services division recorded revenue growth of 7 per cent, while its market and wealth services rose 8 per cent.
On the back of the results, the bank lifted its medium-term return on tangible common equity target to about 28 per cent, from 23 per cent previously, and raised its pre tax margin target by five percentage points to 38 per cent.
Central bankers show ‘full solidarity’ with Powell in joint statement
The leaders of several of the world’s largest central banks have issued a rare joint statement backing US Federal Reserve chair Jerome Powell after the Trump administration threatened him with the prospect of criminal charges.
“We stand in full solidarity with the Federal Reserve System and its Chair Jerome H. Powell,” the signatories said. “The independence of central banks is a cornerstone of price, financial and economic stability in the interest of the citizens that we serve.”
The statement added that it was “critical to preserve that independence, with full respect for the rule of law and democratic accountability”, and said that Powell had served “with integrity, focused on his mandate and an unwavering commitment to the public interest”.
The statement was signed by 10 central bank governors, including Bank of England governor Andrew Bailey and European Central Bank president Christine Lagarde.
Other signatories included the heads of the central banks of Australia, Canada, Sweden, Switzerland, Brazil, South Korea, Norway and Denmark.
HSBC considering significant risk transfer linked to €2bn of corporate loans
HSBC is testing investor appetite for a significant risk transfer linked to a portfolio of about €2bn of investment grade corporate loans, according to a Bloomberg report citing sources familiar with the matter.
The proposed transaction would cover roughly 10 per cent of the underlying loan portfolio although final terms remain subject to discussions with investors, the sources said. HSBC declined to comment.
Significant risk transfers are used by banks to obtain protection against loan defaults and typically cover between 5 per cent and 15 per cent of a loan portfolio.
Often structured as credit-linked notes, the deals allow lenders to improve capital ratios and reduce the need to raise new equity or limit shareholder dividends.
HSBC’s work on the potential SRT comes as it finalises its $14bn takeover of Hang Seng Bank, its largest acquisition in more than a decade.
Pakistan to partner with World Liberty Financial on stablecoin
Pakistan has signed an agreement linked to World Liberty Financial, the crypto business associated with the family of US President Donald Trump, to explore the use of a stablecoin for cross-border payments, according to a Reuters report citing a source involved in the deal.
The deal represents one of the first publicly disclosed partnerships between World Liberty and a sovereign state and comes as relations between Pakistan and the US are showing signs of improvement.
Under the agreement, World Liberty will work with Pakistan’s central bank to integrate its USD1 stablecoin into a regulated digital payments framework, allowing it to operate alongside the country’s own digital currency infrastructure, the source said.
Pakistan’s central bank governor said in July it was preparing to launch a pilot for a digital currency and is finalising legislation to regulate virtual assets.