Wall Street’s bosses are finally seeing signs of a broader pickup in investment banking, but they are not cheering too loudly just yet.
Investment banking divisions showed robust growth in the first quarter for the largest U.S. banks, which reported surging revenues and fees. Capital markets led the comeback, executives said.
“We have strong backlogs and momentum in every part of the firm,” Morgan Stanley’s MS-N new chief executive Ted Pick told analysts on a conference call after his first quarter at the helm. “While the pipelines are healthy, there remains a backdrop of economic and geopolitical uncertainty.”
Morgan Stanley’s investment banking revenues jumped 16 per cent to US$7-billion in its first quarter, it reported on Tuesday, sending shares up more than 3 per cent.
At Bank of America BAC-N, fees from investment banking surged 35 per cent to US$1.6-billion, but its stock fell more than 4 per cent as it set aside more money to cover souring loans.
“We’re just happy to see the investment banking activity improve,” BofA’s finance chief Alastair Borthwick told journalists. He cited efforts to deepen its presence in middle markets and boost collaboration between corporate and commercial bankers.
“It appears that a rising tide has been lifting all capital market boats here,” said David Wagner, portfolio manager at Aptus Capital Advisors, adding that Morgan Stanley’s performance was “excellent.”
The results echoed strong performances at Goldman Sachs GS-N, JPMorgan Chase JPM-N and Citigroup C-N. While executives cited the return of some activity, they were also quick to point out risks, including interest-rate uncertainty, escalating geopolitical conflicts and the U.S. election.
“I’ve said before that the historically depressed levels of activity wouldn’t last forever,” Goldman’s CEO David Solomon told investors on a conference call Monday. “CEOs need to make strategic decisions for their firms, companies of all sizes need to raise capital and financial sponsors need to transact to generate returns for their investors.”
Goldman shares rallied 3 per cent after profits rose 28 per cent, beating analyst expectations.
Equity capital markets have been a bright spot in recent months as several prominent initial public offerings (IPOs) fuelled optimism that more activity would follow.
“We are cautiously optimistic that we could see a measured reopening of the IPO market in the second quarter,” Citigroup CEO Jane Fraser told analysts on Friday.
Citi’s investment banking fees climbed 35 per cent in the first quarter, lifted by debt and equity capital markets. Yet mergers and acquisitions (M&A) were still slow to emerge, Ms. Fraser said.
“Corporate sentiment is quite positive, especially in the U.S., and our clients around the world have very sound balance sheets,” she said. Still, markets were too “benign” in pricing in risk factors such as geopolitical conflicts, she added.
Citi hired JPMorgan’s former co-head of investment banking, Viswas Raghavan, who is tasked with growing its banking revenues when he joins later this year.
At JPMorgan, chief financial officer Jeremy Barnum also struck a cautious note even as investment banking revenue climbed 27 per cent to US$2-billion.
“While it was encouraging to see some positive momentum in announced M&A in the quarter, it remains to be seen whether that will continue,” Mr. Barnum told analysts on a call on Friday. “And the advisory business still faces structural headwinds from the regulatory environment.”
Morgan Stanley’s Mr. Pick is more optimistic than other CEOs on the effect of geopolitical risks, saying in some cases it can even create incentive for international deals if global conflicts affect supply chains.
“We are in the early innings of a multiyear M&A cycle,” said Mr. Pick at Morgan Stanley, who described investment banking and capital markets as being in the early to middle parts of the business cycle. “We should continue to see all kinds of underwriting … I’m feeling good about this.”
Large M&A announcements in multiple industries presented recent signs of rising confidence from CEOs and boards, that would support capital markets, Ms. Fraser said.
Goldman’s Mr. Solomon expects private equity firms, or financial sponsors, to get more involved in deals in an effort to start returning capital to investors.
Ms. Fraser, meanwhile, noted financial sponsors are sitting on US$3-trillion that they need deploy.
Citigroup shares are up nearly 11 per cent so far this year, outpacing peers including JPMorgan and Bank of America, which have gained 6 per cent and 3 per cent, respectively. Goldman shares have risen 3 per cent, contrasting with a 3-per-cent decline for Morgan Stanley. The S&P 500 banks index has climbed 6 per cent.
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
