Can the Monster Banks Survive the Age of Trump?

A major problem is that revenues at JPMorgan and Bank of America are well below their historic highs. JPMorgan reported revenues of $99.13 billion back in June 2013; Citi reported revenues of $77.40 billion as recently as September 2014, and BOA’s revenues hit a high of $97.59 billion in June 2012.

Read more

Should Central Banks Adopt Digital Currencies?

The PBOC is in a rush to develop a digital currency because of China’s experience with bitcoin. China is the world’s largest market for bitcoin because the cryptocurrency allows the country’s residents to easily bypass its’ rigid currency controls.

The central bankers apparently hope that issuing their own cryptocurrency will give them some control over the situation. Some control is better than no control which is what they have right now.

Read more

Costco is not Helping Citigroup

Despite the Costco debacle, Citigroup is still making money, because its’ income is increasing.

Citi reported $14.67 billion in net income on September 30, 2016; which was a slight increase over 2015. The bank reported a net income of $14.25 billion in September 2015. Unfortunately the net income has fallen since the Costco deal – it was $15.31 billion in June 2016.

This makes Citi something of a value investment because it can afford to lose a lot of money. Citigroup will survive the Costco troubles, because it can take the hit.

Read more

Credit Cards’ Bright Future on Display at Discover Financial Services

These numbers; and the 27.77% profit margin reported on September, show that Discover’s decision to concentrate on providing basic credit card services and good customer service is paying off.

By ignoring flashy gimmicks and avowing entanglements with retailers; such as American Express (NYSE: AXP) messy relationship with Costco, Discover has been able to maintain steady market share. It has also accumulated a lot of street cred and good will along the way.

Read more

Triumph Bank Bancorp do Regional Banks Make Money?

This is the big dilemma that brick and mortar institutions whether they be giant monster banks or small local operations face. There are generations of people out there that almost never use brick and mortar banks; including Generation Xers (like me) and Millennials.

Read more

Banking Apocalypse Thousands of Brick and Mortar Branches Closing

If this trend progresses to its logical end bank tellers will disappear much like elevator operators did. It also raises a fascinating question: what will communities do with all those empty bank buildings?

Read more

Costco Members hate Citibank’s New Visa

Citigroup received more than 1.5 million customer-complaint phone calls about the Costco Everywhere Card during the first two days of the roll out; June 21-23, Bloomberg reported. Costco also took a lot of heat; with its Facebook page filling up with complaints about the Visa product.

Read more

Can American Express Survive without Costco?

Despite the June 20 deadline, American Express is still a value investment. It is a well-run company with a lot of cash, a lot of float and a great deal of marketing creativity. People who buy Amex as a value investment; a dividend stock, or a growth stock will not be disappointed because American Express will survive and grow without Costco.

Read more

Synchrony Financial Are Private Label Credit Cards a Value?

Despite that Synchrony is capable of significant revenue growth. The company reported revenues of $7.988 billion in September 2014 that grew to $9.84 billion in December 2014, $10.29 billion in December 2015 and $10.41 billion in December 2015. Synchrony’s business is still expanding despite all the changes in the credit card industry, which is better than you can say for American Express (NYSE: AXP).

Read more

Capital One: Is it the Future of Financial Services?

My take is that Capital One’s cash and revenue will grow for the foreseeable future because it is well placed to take advantage of the trends in modern banking. In particular, it is in a good position to offer such next-generation solutions as payment apps and online loans.

Read more