Latest news with #financialindustry
Yahoo
22-07-2025
- Business
- Yahoo
JPMorgan Wants In on the Stablecoin Pie. Should You Buy JPM Stock First?
Following the successful listing of Circle (CRCL) a few weeks ago, stablecoins have been thrust into the spotlight. Touted as a potential disruptor of the traditional payments system, it can be said that with stablecoins, the financial industry may be experiencing its 'AI Moment.' Now, with the GENIUS Act signed into law, stablecoins have received a regulatory shot in the arm as well. So, where does this all leave the world's largest bank in terms of market cap, JPMorgan (JPM)? Well, it can be safely said that CEO Jamie Dimon is not someone who is jumping up and down with excitement for stablecoins, stating, 'I think they're real, but I don't know why you'd want to [use a] stablecoin as opposed to just payment.' More News from Barchart This Penny Stock Wants to Become the MicroStrategy of Dogecoin Opendoor Stock Is Surging Higher in a Frenzied Retail Rally. How Should You Play OPEN Shares Here? Robinhood Stock Stumbles as S&P 500 Inclusion Is Once Again Off the Table for HOOD Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. But those who are labeling this as the financial giant's 'Kodak' or 'Blockbuster' moment will be disappointed as, in almost the same breath, the veteran CEO revealed that 'We're going to be involved in both JPMorgan deposit coin and stablecoins to understand it, to be good at it.' I believe that this is a prudent strategic move on the part of Dimon, who is being cautious about stablecoins, while at the same time being cognizant of the competition from young fintechs. About JPMorgan Tracing its origins back to the 18th century, JPMorgan is the largest bank in the U.S. and among the world's most systemically vital financial institutions. Its main divisions include Consumer & Community Banking, Corporate & Investment Banking, Asset & Wealth Management, and Commercial Banking. Valued at a market cap of $809.5 billion, JPM stock is up 21.7% on a YTD basis. JPM stock also offers a dividend yield of 1.92%. Notably, the company has been raising dividends consecutively for the past 14 years and with a payout ratio of just 27.4%, there remains room for further growth. The company also rewards its shareholders with buybacks. Net share repurchases for Q2 2025 were at $7.1 billion which was a 45% rise from the year-ago period. So, is JPM stock a secure bet now? I believe it is, and here's why. Well-Positioned to Outperform One name that has emerged from the 2008 financial crisis even stronger is JPMorgan. And in recent years, with interest rates climbing, lighter federal oversight under President Donald Trump, and a renewed flurry of activity in IPOs and corporate deal-making, it's been well-positioned to reap the benefits. A lot of this is visible in its net interest income, still the core of any bank's earnings model. JPMorgan expects to pull in around $95.5 billion in this category for fiscal 2025, up from $92.5 billion last year. That jump stems from the bank's ability to sustain a strong spread between loan yields and deposit costs, which is among the best margins in the business. But lending isn't the only place the firm shines. Its investment management wing has been gaining both scale and importance. The business doesn't require much capital outlay, yet the returns are substantial. In Q2 2025, it reported $5.8 billion in revenue and net income of $1.5 billion. Compared to the same period the year before, that's an increase of nearly 10% and more than 16%, respectively. Overall, the AUM of the division rose by 18% in the same period to $4.3 trillion, with an impressive 36% return on equity, signaling solid internal performance. The First Republic acquisition helped, too. After Silicon Valley Bank's collapse, JPMorgan stepped in to purchase First Republic and its roster of high-net-worth clients. By merging that client base into its much larger network, the bank is aiming to grow its private wealth footprint. The model relies on scaling personalized service across a far broader infrastructure. This can unlock another meaningful avenue of growth. On the tech side, JPMorgan continues to invest heavily. For 2025, spending on technology is expected to reach about $18 billion. Most internal systems already operate on cloud platforms, and AI tools are no longer experimental, they're integrated. Over 200,000 employees are actively using them for tasks ranging from coding and customer outreach to call center efficiency. These tools also support fraud monitoring and credit evaluation, where JPMorgan has already been ahead of the curve for several years. Finally, circling back to stablecoins, the bank has developed something called JPMD. It's not quite a stablecoin, but it serves a similar purpose. JPMD is a tokenized form of deposit, designed with institutional use in mind. It runs on Base, a Layer 2 blockchain developed by Coinbase (COIN) on top of Ethereum (ETHUSD). JPMD complements JPM Coin, which JPMorgan already uses for internal transfers. The idea now is to take that concept further, offering value transfer and deposit services beyond the walls of one bank and extending them into a wider, crypto-enabled financial environment. Solid Finanicals A financial powerhouse like JPMorgan should also boast a strong balance sheet, backed by consistent revenue and earnings growth. And that's exactly what the company offers. JPMorgan has seen its revenue and earnings grow at 5-year CAGRs of 10.97% and 17.58%, respectively. Moreover, the company has reported an earnings beat in each of the past six quarters. In the most recent quarter, it reported a beat on both revenue and earnings, even though both witnessed a yearly decline. Revenues for the quarter came in at $44.9 billion, down 10.5% from the previous year, as EPS was reported at $5.24. This marked a YOY decline of 14.4% but was still above the consensus estimate of $4.49. Average loans and deposits, however, went up by 5% and 6% on a YOY basis to $1.4 trillion and $2.5 trillion, respectively. Book value per share, a key metric that indicates the the bank is increasing its net worth on a per-share basis, went up by 10% from the previous year to $122.51. Analyst Opinions on JPM Stock Analysts remain cautiously optimistic about JPM stock, giving it a consensus rating of 'Moderate Buy' with a mean target price of $296.64. This indicates upside potential of about 2% from current levels. Out of 26 analysts covering the stock, 14 have a 'Strong Buy' rating, three have a 'Moderate Buy' rating, eight have a 'Hold' rating, and one has a 'Strong Sell' rating. On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Wall Street Journal
15-07-2025
- Business
- Wall Street Journal
Post-Crisis Rules to Keep Banks Safe Are on the Way Out
LONDON—At a banquet in a gilded palace here on Tuesday night, U.K. Treasury chief Rachel Reeves will outline plans to kick the country's huge financial industry into a higher gear. The planned address reflects a new willingness in both the U.S. and the U.K. to rethink tough banking regulations—rules put in place to stop the kind of financial crisis that enveloped the world nearly two decades ago.
Finextra
14-07-2025
- Business
- Finextra
The Compliance Burden of the Great Wealth Transfer: Why Financial Institutions Must Prepare Now: By Srbuhi Avetisyan
The financial industry is bracing for the 'Great Wealth Transfer'—an unprecedented $84 trillion in assets expected to pass from Baby Boomers to their Gen X, Millennial, and Gen Z heirs over the next two decades. But this transfer isn't just bigger, it's fundamentally different. According to Penguin Analytics, a global study of 13,500 capital owners and heirs, this generation of inheritance is more fragmented, less documented, and globally entangled than anything the financial sector has faced before. Unlike prior transitions where legal preparation and institutional trust were the norm, today's wealth is scattered across jurisdictions, stored in spreadsheets, and tied to asset classes that demand structured data, not paper-based will This shift demands a fundamentally new approach from institutions and professionals, particularly wealth managers, compliance officers, and fintech architects. The regulatory burden no longer begins when the assets arrive—it starts with how families document, disclose, and digitize their wealth long before a transfer occurs. Encouragingly, many institutions have begun modernizing their frameworks, recognizing the need for structured digital asset records, cross-border KYC compliance, and event-triggered inheritance logic. Yet the core challenge persists: most families remain underprepared. According to the same analytics: Only 6% of families have a formal inheritance strategy 92% of founders undervalue the importance of Source of Wealth documentation (SoWE) 97.3% still use non-secure or manual record-keeping methods, leaving their estates fragmented and difficult to verify As a result, institutions are inheriting not just assets, but also the compliance and operational chaos that comes with them. Notably, families with a net worth between $3 million and $99 million account for 74.6% of all capital-loss incidents, making them the most exposed demographic in this transition. From Relationship Management to Record Accountability Today, intergenerational wealth transfer is more than just the identification of the heir and their relationship with the owner. The regulators' narrative and goal is not only to confirm the client identity but also to trace asset origin. For instance, in global fixed-income markets, FINRA's TRACE framework now mandates near real-time reporting, not just of transactions, but of underlying asset origin and context to enhance market transparency. Institutions are now being asked, 'Do you know where this came from, and can you prove it?' and SoWE (Source of Wealth Essay), structured asset logs, and multijurisdictional record-keeping are becoming compliance essentials, not luxuries. In anti-money laundering (AML) and customer due diligence regimes, Source-of-Wealth (SoW) traceability is now a discrete requirement. Banks and asset managers are expected not only to know who the client is, but also where their capital actually came from, and to provide auditable proof. Beyond Wills: The Infrastructure Gap The information asymmetry is at the heart of the wealth transfer. It's important to note that the information asymmetry between the heirs and founders isn't a legal challenge, but rather an infrastructure and coordination failure. Despite new regulations confirming that spreadsheets, dusty paper documents in drawers, and local wills are way too outdated, the traditional method of information transfer still remains as the leading one. Without structured digital histories, wealth transfer becomes a liability (for banks, wealth platforms, and insurers). The legal mechanisms are powerless if the wealth transfer plan is crippled by fragmented, unstructured, and non-tracable data. Case studies support the critical failure of information transfer between high-net-worth individuals and their family members as well. In a recent real-world review from the Penguin Analytics case data, a UHNW family held over 40% of their assets across four jurisdictions. The family maintained records across multiple mediums—some in PDF form, others in lawyer's notes, some never digitized at all. When the primary founder became incapacitated unexpectedly, neither the bank nor the family office could retrieve more than 60% of the asset documentation in a verifiable form within the first 3 months. The issue wasn't access. It was invisibility: siloed records, undocumented ownership structures, uncoordinated custody channels. What Financial Institutions Should Monitor Next The intergenerational wealth shift is not only a behavioral phenomenon—it is a compliance and infrastructure tipping point. Financial institutions must prepare for four key developments: Rising Demand for Digital-Native Estate Planning Integrations Trend: Wealth platforms and private banks are increasingly expected to integrate estate-planning functions—digitally, securely, and cross-jurisdictionally. Example: In late 2023, several European wealth managers began piloting 'estate data rooms'—digital repositories where clients could pre-authorize document access based on event triggers like death, incapacity, or age thresholds. This is not legal advice automation—it's digital continuity design. The available insights further strengthen the accuracy of this solution to get viral: 71.4% of founders say they would entrust inheritance execution to a third party, but only if human discretion is removed and digital execution frameworks are in place. Only 5% currently have such digital infrastructure in place. Emergence of RegTech Layers for Inheritance & Ownership Change Trend: RegTech is moving beyond onboarding and transaction monitoring—new tools are being built to track inheritance events, monitor ultimate beneficial ownership changes, and verify Source of Wealth at the point of transfer. Example: In Singapore and Switzerland, family offices are now required to register and periodically update beneficial ownership structures, especially when ownership changes occur due to inheritance. This demands continuous record-keeping, not just one-time declarations. Supporting insights confirm that: More than 50% of heirs inherit assets they don't fully understand—structure, tax implications, or even existence. This creates operational risk for institutions if ownership change isn't properly logged and reported. Regulatory Movement Around Digital SoWE Requirements Trend: Jurisdictions like the UK, UAE, and Luxembourg are tightening requirements for documenting the origin of funds, especially in cases involving high-risk nationalities, PEPs, or wealth migration. Example: The FCA (UK) and DIFC (Dubai) have issued guidance requiring not only proof of identity but also narrative-based Source of Wealth documentation, especially in private banking and cross-border onboarding cases. Supporting analytics: 77.6% of heirs report degraded trust from legal professionals post-transfer, raising the need for pre-structured, regulator-ready SoWE narratives Shift from 'Financial Advice' to Post-Inheritance Traceability Obligations Trend: In a post-inheritance environment, banks and wealth firms are being asked to prove the path of funds, not just provide advice. Example: Several EU-based private banks are now including post-mortem compliance audits in their internal governance to ensure that beneficiaries are traceable, that asset allocations reflect documentation, and that no black-box trusts or donor misrepresentations are involved. Analytics insight: Only 6% of families have a clearly defined wealth transfer strategy This leaves financial institutions open to reputational risk and legal exposure when the burden shifts to them In summary, wealth transfer is no longer a private family milestone—it is a regulatory and infrastructure event. Financial institutions must prove provenance, document logic, and ensure permissioned flows of capital across generations. Firms that act early to support structured, secure, and traceable inheritance pathways will be better positioned for what comes next.
CTV News
09-07-2025
- Business
- CTV News
Up the Down Market Vancouver
Make a Real Investment Through an Unreal Stock Game September 18, 2025 Sheraton Vancouver Wall Centre At Up the Down Market, you and your team will go head-to-head with the heavyweights of the financial industry, buying and selling shares in fictitious companies to see who's the savviest and shrewdest. As you play, you will make a lasting investment in people with Down syndrome. For more information click here.
CNA
09-07-2025
- Business
- CNA
10 financial institutions offering internships to 300 poly students
Three hundred polytechnic students and graduates will be getting relevant skills to prepare them for the financial industry. Beyond the internships at financial institutions, the programme also allows firms to nurture a pipeline of talent. Alxis Thng with this report.
