FirstFT: US banks increase their salary and technology spending
The costs of major U.S. banks jumped by more than $ 6.6 billion in the last quarter, as the intensifying battle for talent and the growing threat from new fintech rivals forced executives to rise. their expenses.
The 10 percent increase in costs over last year at JPMorgan Chase, Goldman Sachs, Morgan Stanley, Bank of America and Citigroup surprised analysts. Many had predicted that spending would decline modestly this year as the additional expenses associated with doing business during the pandemic wore off.
However, in a series of conference calls to discuss quarterly earnings, executives forecast higher annual expenses due to salary increases for bankers and larger investments in technology and marketing.
The increase in spending represents a change from how banks reacted to the last financial crisis, when many relied on cost cuts to boost profits. But the stimulus packages have helped banks avoid the wave of pandemic-related loan losses that executives expected, meaning they have extra cash to spend.
Brian Foran, Banking Analyst at Autonomous Research, said:
“There is nervousness among investors that it is the cost of doing business to keep customers from bleeding fintechs.”
Five other articles in the news
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Read more: Collision course is among the first books to attempt to aptly relate and contextualize this remarkable episode, said our Asian Affairs Editor-in-Chief Leo Lewis.
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3. Opec + signs agreement to increase oil production OPEC and its allies reached an agreement over the weekend to increase oil production in response to soaring prices. The deal represents a victory for Abu Dhabi, which threatened to derail talks earlier this month. Subscribe to our Energy Sources Information Bulletin for the latest energy industry news.
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5. Probe: Spyware Used to Hack Journalists, Activists, and Executives Spyware licensed from Israeli company NSO Group was used to target smartphones owned by 37 journalists, human rights activists and other figures, according to an investigation released yesterday.
the we is experiencing a “pandemic of the unvaccinated,” warned the head of the country’s main public health agency, as new cases of the coronavirus jumped 70% last week.
Three of Brittany Most cabinet ministers – including Prime Minister Boris Johnson – will self-isolate on so-called Freedom Day in England today, when the country lifts its last pandemic restrictions.
the Delta variant takes a heavy toll on dozens of developing countries, where immunization levels are insufficient to prevent an upsurge.
the Tokyo Olympics suffered a number of delays controversies, including a suspected rape, bullying scandal and a missing weightlifter – as well as 55 cases of the coronavirus this month.
The day to come
Earnings IBM, which recently unveiled a management reshuffle, is releasing its second quarter results today after the US markets close.
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