Standard cost-cutting measure or signs of an industry contraction?
The industry contraction across the banking sector is no longer a European-only phenomenon as the United States grapples with its own layoffs and job cuts. While US lenders have been more fortunate or resilient to the headwinds in the industry thus far, those days could soon be coming to an end with Bank of America (NYSE:BAC) opting to initiate a round of layoffs for its personnel.
Over the past two years, some of the largest lenders in the world have opted to pursue aggressive cost-cutting measures. Overall, this has seen a consolidation of operations, wide ranging restructuring plans, the winnowing of trading desks, and job layoffs en masse – mostly relegated to the back-office or IT space.
Industry Headwinds
The banking industry itself is particularly vulnerable to a number of headwinds, including a transformation away from traditional banking services in favor of more mobile or digitalized solutions. Moreover, the high cost of labor has also proven to be a bitter pill to swallow, helping erode revenues and profitability amongst even the world’s most well capitalized and established lenders.
Fresh off solid Q1 2017 earnings, Bank of America (NYSE:BAC) will be laying off an undisclosed number of personnel, specifically from its operations and technology division. The US’ second largest bank is initiating the cuts in a bid to help lower its costs, despite posting solid revenues last quarter and largely beating street estimates with its financial performance.
Still, the move speaks volumes about the issues facing the banking industry in the US, many of which felt were impervious to the same problems in Europe, namely the UK. The UK, and in particular London, has been ground zero for layoffs in the banking industry for over two years now as global lenders such as Deutsche Bank, Standard Chartered, and Barclays, among others, are all seeking life after Brexit.
Financial goals in focus
Bank of America’s Chief Executive Officer Brian Moynihan has initiated the cuts as a catalyst to help reduce costs – the endgame being the boost of financial targets laid out over the past quarter. Investors seem to be buying the rhetoric, as the bank’s shareprices have largely avoided a catastrophic pullback seen amongst other lenders in the wake of such news. For its part, Bank of America’s (NYSE:BAC) share prices were off just -0.27 percent at the time of writing on the news, operating at a healthy $23.69.
Looking beyond its financial targets, Bank of America has also been looking to slash costs across other elements of its operations in recent months. This has culminated in less publicized moves such as the closure of expensive data centers and outsourcing information to third-party technology firms. It remains to be seen whether this strategy is confined to Bank of America or will develop into a broader trend amongst US lenders. For the time being, investors appear to be confident that the industry will soldier forth intact, unlike their European counterparts.
The industry contraction across the banking sector is no longer a European-only phenomenon as the United States grapples with its own layoffs and job cuts. While US lenders have been more fortunate or resilient to the headwinds in the industry thus far, those days could soon be coming to an end with Bank of America (NYSE:BAC) opting to initiate a round of layoffs for its personnel.
Over the past two years, some of the largest lenders in the world have opted to pursue aggressive cost-cutting measures. Overall, this has seen a consolidation of operations, wide ranging restructuring plans, the winnowing of trading desks, and job layoffs en masse – mostly relegated to the back-office or IT space.
Industry Headwinds
The banking industry itself is particularly vulnerable to a number of headwinds, including a transformation away from traditional banking services in favor of more mobile or digitalized solutions. Moreover, the high cost of labor has also proven to be a bitter pill to swallow, helping erode revenues and profitability amongst even the world’s most well capitalized and established lenders.
Fresh off solid Q1 2017 earnings, Bank of America (NYSE:BAC) will be laying off an undisclosed number of personnel, specifically from its operations and technology division. The US’ second largest bank is initiating the cuts in a bid to help lower its costs, despite posting solid revenues last quarter and largely beating street estimates with its financial performance.
Still, the move speaks volumes about the issues facing the banking industry in the US, many of which felt were impervious to the same problems in Europe, namely the UK. The UK, and in particular London, has been ground zero for layoffs in the banking industry for over two years now as global lenders such as Deutsche Bank, Standard Chartered, and Barclays, among others, are all seeking life after Brexit.
Financial goals in focus
Bank of America’s Chief Executive Officer Brian Moynihan has initiated the cuts as a catalyst to help reduce costs – the endgame being the boost of financial targets laid out over the past quarter. Investors seem to be buying the rhetoric, as the bank’s shareprices have largely avoided a catastrophic pullback seen amongst other lenders in the wake of such news. For its part, Bank of America’s (NYSE:BAC) share prices were off just -0.27 percent at the time of writing on the news, operating at a healthy $23.69.
Looking beyond its financial targets, Bank of America has also been looking to slash costs across other elements of its operations in recent months. This has culminated in less publicized moves such as the closure of expensive data centers and outsourcing information to third-party technology firms. It remains to be seen whether this strategy is confined to Bank of America or will develop into a broader trend amongst US lenders. For the time being, investors appear to be confident that the industry will soldier forth intact, unlike their European counterparts.
EU Parliament Imposes €10,000 Cash Payment Limit in New Anti-money Laundering Legislation
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
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#fmas #fmas24 #fmevents #networking #finance #africa
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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