It’s peak earnings season in the West, and yesterday saw several major banks report their financial results for 1Q 2024.

#1- Investment banking became Deutsche Bank’s “breadwinner” in 1Q 2024: Deutsche Bank’s fixed-income trading and transaction executions experienced a resurgence in 1Q 2024, leading to revenue growth in its investment banking division and contributing to a 10% y-o-y increase in net income, according to its earnings release.

The lender’s retail division, once the top earner benefiting from high interest rates, lost its position due to customer service glitches. The bank’s net income attributable to shareholders stood at EUR 1.275 bn for the quarter, surpassing analyst expectations and increasing 10% y-o-y.

Shares in the bank were up 8% at market close.

#2- Barclays is back in the black: Barclays reported earnings attributable to shareholders of GBP 1.55 bn for 1Q 2024, surpassing analyst expectations and rebounding from a net loss of GBP 111 mn in 4Q 2023, according to its earnings release (pdf). The British lender bounced back after implementing its overhaul plans, which included further investment in UK consumer businesses and the acquisition of Tesco Bank, according to Barclays CEO, C.S. Venkatakrishnan. The bank’s shares closed up 6.7%.

ALSO WORTH KNOWING-

  • The JPY hit a fresh 34-year low against the greenback, slipping past the 155 mark as the USD continues to strengthen — raising speculation that the Japanese government will intervene to stabilize FX markets. (CNBC)
  • Quantitative hedge funds see high returns: Computer-driven hedge funds are reaping high returns from trends in financial markets, with hedges on rising cocoa prices and a weakening JPY seeing a 12% gain in 1Q 2024, as per a Société Générale index. (Financial Times)

THE MARKETS THIS MORNING-

Asian markets are mostly in the green this morning ahead of a key Bank of Japan monetary policy meeting that follows a historic low for the JPY. Meanwhile, US futures point to a strong opening after a strong earning showing from Big Tech.

ADX

9,041

0.0% (YTD: -5.6%)

DFM

4,169

+0.1% (YTD: +2.7%)

Nasdaq Dubai UAE20

3,547

-0.2% (YTD: -7.7%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

5.0% o/n

5.4% 1 yr

TASI

12,254

-0.8% (YTD: 2.4%)

EGX30

25,917

-3.2% (YTD: +4.1%)

S&P 500

5,048

-0.5% (YTD: +5.8%)

FTSE 100

8,078

+0.5% (YTD: +4.6%)

Euro Stoxx 50

4,939

-1.0% (YTD: +9.2%)

Brent crude

USD 89.28

+0.3%

Natural gas (Nymex)

USD 1.56

-4.8%

Gold

USD 2,342.20

0%

BTC

USD 64,433.95

+0.1% (YTD: 45.8%)

THE CLOSING BELL-

The DFM rose 0.1% yesterday on turnover of AED 592.1 mn. The index is up 2.7% YTD.

In the green: National General Ins. Company (+10.1%), GFH Financial Group (+5.8%) and Commercial Bank of Dubai (+4.2%).

In the red: Agility (-10.0%), Watania International Holding (-5.4%) and Deyaar Development (-4.8%).

Over on the ADX, the index stayed flat on turnover of AED 992.2 mn. Meanwhile Nasdaq Dubai fell 0.2%.

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