All articles by Douglas Blakey
Douglas Blakey
New branch concept
One of the (many) frustrations of 2011 was Capitecs delay in discussing details of its branch investment plans. The fact that Capitec was planning to overhaul its branch network and ramp up its already energetic branch expansion programme – was known as was its decision to commission UK-based allen international to design its new retail store concept. Capitec agreed to set out its thinking for what is a very ambitious project, even by its standards, but not until the New Year. The first such branch opened on 26 January and early images are to hand. At first glance, the Capitec project will offer a blueprint to what can be achieved via the convenience branch store concept.
BofA trials BankAmeriDeals online discounts
Bank of America (BofA) employees have kicked off an online trial of a service, BankAmeriDeals, that would allow customers to save on retail purchases based on previous spending patterns. If the pilot goes to plan, BofA customers will receive offers via the bank’s website. By contrast to group offerings from online discount services such as Groupon, customers will not require to sign up for e-coupons or visit a separate website. The BofA pilot programme began in January in North and South Carolina in mid-January and will extend across the rest of the country in February.
Retail banking profit collapse at PNC
PNCs retail banking business unit has reported a near profit wipeout, with net income down 78.5% from $144m in fiscal 2010 to only $31m. PNC blamed Regulation E and its restrictions on overdraft fees and the effects of Dodd Frank, limiting intercharge rates on debit card transactions, for lost revenue of $275m in fiscal 2011. Group wide, PNC reported a full year profit for fiscal 2011 of $3.1bn, down 8.8% from the previous year, not helped by increased margin pressure and the costs of increased regulation.
Wells Fargo net profit up 28% Y-on-Y to $15.9bn
Wells Fargo has posted a full year net profit of $15.9bn, up 28% year-on-year, boosted by strong growth in deposits and improvements in credit quality. Average deposits increased year on year by 7% to $827bn while average retail core deposits increased by 4% to $596bn. Less positive metrics included a 180 basis point increase in Wells Fargos cost-income ratio to 61.0% and a 32 basis point fall in the net interest margin to 3.94% from 4.26% while total revenue slipped by 5% to $80.9bn. Card fees dropped 28%, not helped by the Durbin amendment coming into force.
Customers will pay up to £10pm for digital banking: PwC
Digital banking is set to overtake the branch channel as the main way customers interact with their bank by 2015, according to a report from the consultants PricewaterhouseCoopers (PwC). The survey, The new digital tipping point, reports that consumers are willing to pay up to £10 ($15.30)a month for digital banking services, if they believe they offer convenience and value. In particular, the report says that customers are willing to pay for social media notifications, an electronic wallet for loyalty cards and financial tools provided by banks
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Chase posts FY11 net profit of $19bn, up 9% and a record
Net profit at Chases Retail Financial Services (RFS) unit fell slightly in the year to 31 December, down 3% to $1.68bn but net profit soared by 58% to $4.54bn at its Card Services and Auto division.
Banesto profit falls 73%
Banesto ,the retail-focused Spanish-based lender in which Santander has a near 90% stake, has kicked off the European reporting season with a 73% fall in net profit for fiscal 2011 to 125m (160.2m) from 460m the previous year.Net interest income for the 12 months to 31 December 2011 fell by 12.4% to 1.45bn while net fees and commission was down by 0.2% to 616m.In the fourth quarter, Banesto posted a net loss of 173.3m following a provision of 400m against souring property loans.For the full year, total loans declined by 8.6% year-on-year to 69.2bn; total deposits also fell sharply, by 9.8% to 59.4bn.Non-performing loans increased by 86 points to 4.94% from 4.08% a year earlier.In a statement, the bank said:Economic weakness was persistent throughout the year, and in the second half new uncertainties gave rise to a scenario of high tensions and great volatility in the markets.
BBVA agrees cloud computing deal with Google
Spains second-largest lender BBVA has become the biggest firm to date to sign up to use Google’s range of enterprise software and cloud-based computing services. The deal applies to all of BBVAs 110,000 employees around the world. In future, BBVA employees will use Google applications including email, calendar, docs, chat, video conferencing and other collaboration tools. According to BBVA, partnering with Google will boost cultural change, increase productivity and drive innovation.
QNB posts record FY profit, front runner to snap up Denizbank
Qatar National Bank (QNB), the Gulf states largest bank, has reported a record full year annual net profit of QAR7.5bn ($2.06bn), a 32% year-on-year increase QNBs total loans soared by 47% for the 12 months to 31 December to QAR194bn while deposits increased by 21% to QAR200bn; total assets were up 35% at QAR302bn.
BBVA to sponsor Boca Juniors and River Plate
In terms of the deals, the BBVA Francs logo will be placed in the centre of the jersey of Boca Juniors and from 1 July, the banks logo will also appear on the River Plate jersey. BBVA customers will benefit from the sponsorship by being able to make advance purchases of tickets and jerseys, receive merchandising discounts and invitations to events, and visit each club’s museum and use their fields for recreational activities.