City AM’s Post

#Private #bank headcount closes in on #public #sector #bank tally: #RBI The #employee base of private sector banks, at 745,000, is only a few thousands away from that of public sector banks (PSBs), which reported a headcount of 756,000 as of March, 2023. If the trend continues in the current financial year (FY24), the tally of employees working with private sector banks may surpass that of PSBs by March 2024.

The number of staff employed by UK banks saw its biggest increase in a decade last year, new data shows, as headcount returned to pre-pandemic levels and lenders enjoyed record profits. UK bank staff numbers see biggest jump in a decade as sector outperforms Europe. UK banks employed 612,519 people globally in 2023, according to figures compiled by trade publication The Banker. This number is up by just over 21,000, or 3.56 per cent, from 591,435 in 2022 and marks the biggest increase since the dataset started in 2013. Still, headcount has plummeted 20 per cent, equating to around 154,000 job losses, over the decade as lenders try to become more cost-efficient and improve returns. #careers #banking

US office vacancy rate hits a fresh record high of 19%, surpassing levels in 2008 and 2020. Commercial Real Estate (CRE) lending by US banks has grown substantially over the past decade, rising from about $1.2 trillion outstanding in the first quarter of 2014 to roughly $3 trillion outstanding at the end of 2023. A disproportionate share of this growth has occurred at regional and community banks, with roughly two-thirds of all CRE loans held by banks with assets under $100 billion. CBRE #us #property #banking

A few years ago, some districts in a certain area experienced temporary stress in their home loan portfolio. When investigated, found that the borrowers had a similar income source: they were low-salaried non-residents. Reforms in taxation and employment in another country had affected part of the loan portfolio. However, the good news is that it was only a small part of asset portfolio. As we all know, retail credit has the advantage of diversification. This is an example of how international issues can impact domestic banks. To monitor these issues, MIS data is crucial, but unfortunately many staff at the ground level could not provide accurate MIS data. #riskanalysis #riskmanagement #risk #countryrisk #homeloanspecialist #creditmonitoring #banking #managementinformationsystem #dataanalytics #retailbanking #bankingindustry #bank #homeloan #policychange #knowledgist

Now you can invest your RRSPs, RRIFs and TFSAs into physical Gold and silver. Learn How – book a call today: https://lnkd.in/gihaNsbQ Remote Work Revolution Exposes Regional Banks To New Risks The remote work shift during COVID is now imperiling regional banks years later. Their substantial holdings of plunging Treasuries have caused large unrealized losses. Meanwhile, deposit flight to higher-yielding money funds continues, raising liquidity risks. Though the Fed eased runs by providing liquidity in 2022, fundamentals remain shaky. Delinquencies are rising on banks' sizable commercial real estate loans due to the office vacancy surge. Loan growth is slowing as banks tighten lending standards amidst capital constraints. Lower lending from hobbled regional banks spells slower money supply and economic growth ahead. These institutions face a vise of deposit withdrawals, poor loan performance, and losses on their capital base from falling bonds. Years of rising rates and quantitative tightening have exposed fragilities in banking just as remote work trends batter commercial real estate. Individuals should insulate savings from potential bank disruptions and steer portfolios away from overconcentrated risks. Diversification and active management are key to navigating heightened volatility. For full details, you can watch the video here: https://lnkd.in/g7Nw7-Cx Now you can invest your RRSPs, RRIFs and TFSAs into physical Gold and silver. Learn How – book a call today: https://lnkd.in/gihaNsbQ If you like what I post and want to receive my top picks of the week in your inbasket, consider subscribing to Wealth Solutions for a Changing Economic Landscape Newsletter: https://lnkd.in/d4du3eYh

UK Bank Staff Numbers See Biggest Jump in a Decade as Sector Outperforms Europe The UK banking sector is witnessing its most significant growth in staff numbers in over a decade, reflecting its strong performance relative to its European counterparts. This surge highlights the sector's resilience and its ability to adapt to an evolving economic landscape. Key Highlights: Record Growth: UK banks have reported the largest increase in staff numbers since the financial crisis, driven by robust financial results and an optimistic outlook. Sector Outperformance: The UK banking sector has outperformed many of its European peers, benefitting from a dynamic financial environment and innovative banking practices. Job Creation: The rise in staff numbers is a positive sign for the UK economy, indicating increased job creation and confidence in the financial services sector. Technological Investment: Significant investment in technology and digital banking solutions has also contributed to the need for more specialized staff, driving employment growth. Regulatory Environment: A supportive regulatory environment has helped UK banks to thrive, encouraging growth and expansion in various banking services. The UK's banking sector continues to be a pivotal part of its economy, demonstrating strong growth and the capacity to outpace European rivals. This trend is a testament to the sector's adaptability, innovation, and strategic investments, paving the way for sustained future success.

NEWS UPDATE: Deutsche Bank is going to cut 3,500 jobs within the next two years. This move comes from Germany's largest financial institution amid a strategic cost-reduction initiative. As this news broke, the bank's share prices went up by nearly 5%.The lender’s net earnings witnessed a decline of 16% at 4.2 billion euros ( ₹37,684 crore) in 2023. Christian Sewing, the Chief Executive Officer (CEO), acknowledged the need for cost management. "Cost discipline remains a high priority," AFP quoted the CEO as saying in a message to Deutsche staff while praising the company’s performance amid "an uncertain environment". The lender is pressing ahead with a 2.5-billion-euro ( ₹22,430-crore) efficiency push aimed at improving profitability. Sewing also noted a pre-tax profit of nearly 5.7 billion euros, a peak in 16 years. Deutsche Bank's operational expenses in 2023 included those on restructuring and severance. It amounted to 566 million euros ( ₹5,078 crore). This financial manoeuvring is part of a savings and efficiency programme initiated in 2019. The bank saw a revenue surge of 6%, reaching 28.9 billion euros ( ₹2,59,298 crore). This uptick is largely attributed to the higher interest rates sanctioned by the European Central Bank. The bank expects to spend nearly 400 million euros ( ₹3,588 crore) in 2024, CFO James von Moltke said in a press conference. The expenses would include restructuring costs and further severance packages, von Moltke added. Deutsche Bank has laid out ambitious plans for 2025. Those include getting revenues of 32 billion euros ( ₹2,87,084 crore). It plans to maintain total operational costs at around 20 billion euros ( ₹1,79,428 crore). The bank also intends to propose dividends of 0.45 euros per share for 2023, marking a 50% increment from the previous year. "Our ambition is to be able to pay a dividend of one euro per share for the financial year 2025," Sewing said.  

Introduction The banking sector in the US has always been a topic of discussion, especially during times of economic instability. Recently, the talk about increasing interest rates has caught the attention of experts, investors, and the general public. What is causing this anticipation, and how will it affect the banking industry? #business #economy #news #opinion #startups #USBanks