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Six giant broker-dealers reported a drop in earnings within the closing quarter of 2023, with 5 posting constructive outcomes after changes.
Some corporations’ fourth-quarter and annual outcomes had been affected by charges imposed on establishments by the Federal Deposit Insurance coverage Corp. following the regional banking disaster final 12 months.
These particular assessments and different one-time funds, or good points in a single case, led many broker-dealers to report adjusted earnings for This fall 2023. Some corporations reported each adjusted web revenue (or earnings) and earnings per share, however a number of BDs simply introduced one adjusted determine.Â
Two corporations had vital losses: Citigroup, now in cost-cutting mode and shedding 20,000 employees members; and UBS, digesting Credit score Suisse — which it purchased for $3.2 billion a 12 months in the past.
Associated:Â Greatest & Worst Dealer-Sellers: Q3 Earnings, 2023
“Wealth revenues had been down in 2023 and we totally acknowledge that this enterprise isn’t the place it must be,” CEO Jane Fraser mentioned in an announcement final month.Â
As for UBS, it expects to wrap up its integration of Credit score Suisse by the top of 2026 and goals for its World Wealth Administration unit to high $5 trillion of invested belongings over the following 5 years — or about $100 billion of web new belongings every year by way of 2025 after which round $200 billion yearly by 2028, in keeping with its 2023 annual report.Â
Raymond James mentioned its U.S.-based Personal Shopper Group posted a yearly progress charge of practically 8% for web new belongings, primarily based on its newest outcomes.Â
Monetary corporations kick off the first-quarter earnings season of 2024 on April 12, when Financial institution of America, Citigroup, JPMorgan and Wells Fargo plan to report their newest outcomes.
(Credit score: Chris Nicholls/ALM)
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