Citi, like other big banks, has been cutting costs to boost
profit as low interest rates and new regulations crimp revenue growth.
Not exact matches
April 13 - JPMorgan Chase & Co's quarterly
profit fell short of Wall Street expectations on Friday
as lower revenue from investment banking ate into gains from U.S. corporate tax changes and higher
interest rates.
The stock market opened way down, continuing last Friday's selloff, though it has climbed back since the open — implying the return of volatility —
as skittish investors continue to fear the sequence I describe in this AM's WaPo: tight labor market, wage pressures, higher
interest rates, inflation,
lower profit margins.
Achievement of these goals was considered by the HRC
as very challenging, even aggressive, given the expected modest economic growth for 2007 for the financial services industry, the impact and duration of the on - going flat / inverted yield curve (meaning short - term
interest rates that are virtually equal to or exceed long - term
interest rates, thus
lowering profit margins for financial services companies that borrow cash at short - term
rates and lend at long - term
rates), potentially higher credit losses, fewer available high - quality, high - yielding loans and investment opportunities, and a consumer shift from non-
interest to
interest - bearing deposits.
Banks are generally under pressure due to
low profit margins
as rate differentials are
low, however, with chances of fed raising
interest rate going up in Dec, it will help banks to grow their margins.
Investors and economists alike view
lower interest rates as catalysts for growth — a benefit to personal and corporate borrowing, which in turn leads to greater
profits and a robust economy.
As a result, they often have better
interest rates and
lower fees than regular, for -
profit banks.
These car loan bundles are being seen
as the solution to making a
profit on loans, something that has become difficult with
low interest rates.
A zero - cost collar can also be established to
lower the cost of hedging, but this lessens the potential
profit that would be enjoyed by an
interest rate movement in your favor,
as you have placed a ceiling on your potential
profit.
The main drivers keeping domestic
profits at the high end of an acceptable range are effective tax
rates,
as you said, along with historically
low interest rates and 40 yr
low employee comp.
Any
profit credit unions make can be reinvested with you
as a member, which translates into dividends,
lower interest rates, and
lower service fees.
All other conditions taken
as equal, i.e., assuming the proportion between
interest and total
profit to be more or less constant, the functioning capitalist is able and willing to pay a higher or
lower interest directly proportional to the level of the
rate of
profit.