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Westpac sells RAMS portfolio, posts dip in profits
Westpac has announced the sale of its RAMS mortgage portfolio and a 2% fall in full year net profit as a jump in expenses and lower margins offset the benefits of an increase in income. The Big Four bank said it had sold its $21.4 billion RAMS mortgage portfolio to a consortium including Pepper Money (ASX: PPM), KKR and Pimco. “This transaction will significantly streamline Westpac’s mortgage operations, reduce run costs across the business and provide further strategic flexibility,” Chief Executive Officer Anthony Miller said in a media release. Net profit excluding notable items fell to A$6.972 billion (US$4.56 billion) in the year ending 30 June 2025 from $7.113 billion a year earlier. Net operating income grew 3% to $22.464 billion as net interest income rose 3% and non-interest income increased by 5% in the 2025 financial year (FY25). However, operating expenses jumped 9% to $11.916 billion due to technology and UNITE transformation program costs, higher software amortisation and salary and wage growth as more bankers were hired. This excludes $273 million of restructuring costs.Source: Westpac“We remain focused on reducing our cost to income ratio over time,” Miller said in the media release. Directors d
Banks
First Guaranty slips to loss on auto parts lease setback
First Guaranty Bancshares dropped to a loss last quarter as it took a financial hit from loans linked to an auto parts company that has declared bankruptcy. The Louisiana-based bank’s net loss was US$45.0 million, down from income of $1.9 million one year ago, due to provisions for credit losses, an impairment charge, and a credit exposure. “First Guaranty has made significant progress in reducing risk in our balance sheet and increasing our capital ratios. I am disappointed with the news associated with the auto parts bankruptcy but we have taken proactive steps to reserve against the credit given the current known facts,” said First Guaranty CEO Michael Mineer. “First Guaranty Bank's risk weighted capital ratio has improved to 12.34% at September 30, 2025 compared to 11.66% at September 30, 2024. Our business strategy change from July of last year prepared the bank to be able to withstand this event.” It saw a $47.9 million provision for credit losses, with $39.8 million of this stemming from First Guaranty’s relationship with an auto parts manufacturer that declared bankruptcy last quarter. The bank also posted an impairment charge of $12.9 million. The bank had a $52.0 million credit exposure due to its commercial
Banks
HSBC passes estimates as net interest income grows
HSBC beat estimates on profit and revenue last quarter as net interest income rose, sending shares up by 4.6%. Profit before tax was US$7.30 billion, down from $8.48 billion year-over-year due to legal expenses but above HSBC-compiled estimates of $5.98 billion. Revenue was $17.79 billion, up from $17.00 billion and beating estimates of $17.05 billion. “We are becoming a simple, more agile, focused bank, built on our core strengths,” said HSBC CEO Georges Elhedery. “The intent with which we are executing our strategy is reflected in our performance this quarter, despite taking legal provisions related to historical matters. The positive progress we are making gives us confidence in our ability to upgrade our targets and we now expect 2025 RoTE [return on tangible equity] excluding notable items to be mid-teens, or better.” Net interest income rose 15% to $8.78 billion, which the company credited to deposit growth and a $300 million loss one year ago from the early redemption of legacy securities. Income from its Wealth segment surged 30% to $2.68 billion. Wholesale Transaction Banking income fell 2% to $2.61 billion. HSBC’s profit before tax saw a $1.4 billion hit from legal provisions. This includes allocations
Banks
Zions Bancorp beats estimates despite US$50m loan loss
Zions Bancorporation beat estimates on earnings per share last quarter, boosting its share price after a 13% plunge on Thursday. Earnings per share were US$1.48, up from $1.37 year-over-year and above Zacks estimates of $1.40. The Salt Lake City-based bank’s share price plummeted last week after it announced a $50 million loss from two commercial and industrial loans. “We’re pleased with the Company’s core earnings, which included 14% growth in pre-provision net revenue over the prior year period, and 18% on an adjusted basis,” said Zions CEO Harris Simmons. “The quarter’s credit results were marred by a $50 million charge-off, and a $10 million specific reserve established against the approximate remaining balance, arising from loans to two related companies in which apparent irregularities and misrepresentations were recently detected. Legal action has been initiated to pursue recovery of the amounts owed from guarantors of the credits.” Zions’ net interest income was $672 million, rising 8%, which the company credited to lower funding costs. Its net interest margin was 3.28%, up from 3.03%. Loans and leases increased 2% to $60.3 billion, driven by 7% growth in consumer loans. Excluding the $50 million charge, its
Banks
Cockroach released into bank loan kitchen
It may have been a prescient comment by the Chief Executive Officer of the world’s most valuable bank. “I probably shouldn't say this, but when you see one cockroach, there’s probably more, you know. Everyone should be forewarned for one on this one,” JPMorgan Chase Chairman and CEO Jamie Dimon said. He was responding to a question on Wednesday from an analyst who asked if the bank had reviewed its processes after writing off US$170 million of loans to bankrupt automotive parts dealer Tricolor. A day later, shares in United States banks plunged as concerns grew about loans risks following the Tricolour collapse and another automotive sector bankruptcy, First Brands. Shares in banks including Zions Bancorporation, Western Alliance, and Jefferies, fell sharply on Thursday as investors became nervous about risk in the sector, which has been shaken by exposure to the auto bankruptcies. Zions dropped 12% after announcing a $50 million loss on two commercial and industrial loans in California, while Western Alliance dived after 11% disclosing a lawsuit alleging fraud by Cantor Group V, LLC. Investment bank Jefferies plunged 9% after it revealed an exposure to First Brands, bringing losses since the auto parts business’

Banks
Investment banking drives Morgan Stanley, BOA Q3 beats
Morgan Stanley and Bank of America both reported third-quarter earnings that smashed expectations, driven by Wall Street's insatiable AI-driven investment banking revival as markets shook off months of uncertainty. MS delivered record revenues of US$18.2 billion, marking an 18% leap from the year-ago quarter, while Bank of America posted $28.1 billion in revenues - up 11% year-over-year. Both banks' results landed more than $1 billion north of analyst projections, with investment banking and wealth management driving performances, as the divisions staged a comeback from 2024's deal drought. Investors lapped up the news, with Morgan Stanley gaining 5% to and Bank of America rising 4-4.5% after hours to $52.42 - almost touching a new 18-year high. Analysts characterised Morgan Stanley's performance as delivering a significant surprise of nearly 30% according to FinancialContent Business Wire, primarily powered by the investment banking and equity trading resurgence.Investment banking roars backMorgan Stanley's investment banking revenues vaulted 44% to $2.1 billion, while Bank of America's investment banking fees topped $2 billion for the first time since early 2022, climbing 43% year-over-year. “Institutional Securit
Banks
Big Four’s biggest bank boss gets three more years
If he did not realise it already, Commonwealth Bank of Australia (CBA) boss Matt Comyn now knows he does not have to dust off his job resume until at least 2028. CBA Chair Paul O’Malley on Wednesday assured Comyn his job at the helm of Australia’s largest company is safe for another three years. O’Malley told shareholders at the annual general meeting (AGM) on Wednesday that he would stand for re-election for his final three-year term, with the support of the Board. “One of the Board’s key roles is appointing the CEO and ensuring appropriate succession plans. We have been pleased with the performance of Matt as CEO,” he said in his address to the AGM. “As I mentioned, I will stand for re-election today for my final three-year term. “Our intention and expectation is that the decision as to the appointment of the next CEO will be made by the Board led by my successor as Chair.” As Comyn was appointed CEO in 2018, the announcement means he will have been in the role for 10 years when the Board next considers his future. He told the meeting that economic growth in Australia remained below trend but was recovering, inflation was back within the target band, and a modest interest rate cutting cycle was underway.
Banks
Westpac pockets $500m as regulatory punishment ends
Westpac has been allowed to free up $500 million of capital after completing a multi-year risk transformation program required by the Australian Prudential Regulation Authority (APRA). APRA said it would remove the remaining capital add-on it applied to Australia’s second-largest bank after an investigation in 2020 into its risk management. Westpac said this would increase its common equity tier 1 capital ratio by about 17 basis points and reduce risk-weighted assets by $6,250 million immediately. The bank entered a Court Enforceable Undertaking (CEU) with APRA in December 2020, where it committed to remediating specific prudential weaknesses in its culture, governance and accountability and addressing the root causes of these issues. Westpac established the Customer Outcomes and Risk Excellence (CORE) Program and appointed an independent reviewer. This follows the removal of the first tranche $500 million capital add-on in July 2024, in recognition of Westpac’s progress in addressing these issues. APRA Member Therese McCarthy Hockey said completion of the risk transformation program was a vital step in ensuring Westpac met APRA’s expectations by holding itself to the requisite prudent risk management and governa
Banks
Earnings beat turns efficiency queries for Goldman Sachs
Goldman Sachs delivered earnings of US$12.25 per share for the third quarter, comfortably beating the $11.02 consensus estimate, yet it wasn't enough for Wall Street as the stock fell 2% at close. Net revenues hit $15.18 billion - the third-highest quarterly figure in the firm's history - up 20% year-over-year, but investors weren't impressed. The issue wasn't the top-line performance, with investment banking fees surging 42% to $2.7 billion and advisory fees jumping 60% to $1.40 billion as dealmaking activity roared back to life. Markets revenue climbed across the board, with Fixed Income, Currency and Commodities up 17% to $3.47 billion and Equities rising 7% to $3.74 billion. The firm's Asset & Wealth Management division hit record assets under supervision of $3.45 trillion, marking the 31st consecutive quarter of net inflows.Credit: Goldman SachsWhat spooked the market was operating expenses, which jumped 14% year-over-year to $9.45 billion, above the $8.98 billion analyst estimate, while headcount rose 5% as the firm expanded to capture market share in a recovering M&A environment. “[Goldman Sachs] is prioritising the need to operate more efficiently to seamlessly deliver the firm to our clients helped by new A