JPMorgan's Q1 net income down 42%; Japan's SMBC Nikko faces new charges

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TOP NEWS IN GLOBAL FINANCIALS

* JPMorgan Chase & Co. reported a first-quarter net income of $8.28 billion, or $2.63 per share, down from $14.30 billion, or $4.50 per share, in the year-ago period. CEO Jamie Dimon expressed optimism about the economy "at least for the short term" but sees significant geopolitical and economic challenges ahead due to high inflation, supply chain issues and the war in Ukraine.

* Japan's Securities and Exchange Surveillance Commission filed fresh charges against SMBC Nikko Securities Inc. and asked prosecutors to charge former Deputy President Toshihiro Sato with manipulating the price of a company's shares relating to block offers, Bloomberg News reported. The commission also filed charges against Makoto Yamada, former general manager of equity trading; Hitoshi Tamura, a manager of the equity solutions business; and Yuji Karino, a member of the equity trading team.

➤ US banks post solid loan growth in Q1'22 as uncertainties build

Investors will be watching earnings reports closely for signals about whether macroeconomic concerns and shocks like the war in Ukraine are affecting loan demand.

➤ Hong Kong bankers high in demand as city fights to keep finance hub status

Banks in Hong Kong face an acute talent shortage as the city continues to impose some of the strictest travel restrictions in the world at present to control the COVID-19 pandemic.

READ MORE about the market reaction and industry impact of the evolving situation in Russia and Ukraine in our new Issue in Focus.

US & CANADA

* Activist investor Institutional Shareholder Services urged Wells Fargo & Co. shareholders to vote against the board's proposed compensation for CEO Charles Scharf and other leaders, citing a lack of disclosures and discretion to award the pay, Reuters reported. Scharf is getting total pay of $21.4 million for 2021, compared to $20.4 million a year earlier, according to the report, which cited the company's proxy statement.

* BlackRock Inc. reported an adjusted net income of $1.46 billion, or $9.52 per share, for the first quarter, up from $1.24 billion, or $8.04 per share, in the year-ago quarter.

Click here for more of the day's essential bank and financial services news in the U.S. and Canada.

LATIN AMERICA

* Brazilian bank Itaú Unibanco Holding SA announced a joint venture with systems manager TOTVS SA to expand financial services in the latter's management system focused on corporate clients and their supply chain, clients and employees. Itaú will pay 610 million reais for its stake, with up to 450 million reais payable in the future as an earnout after five years.

* Bond issuances in Brazil saw their biggest quarter since 2012, capturing 105 billion reais this year through March, according to financial and capital markets association ANBIMA. Fixed income represented nearly 85% of the total.

EUROPE

* Banco BPM SpA will fully acquire Italian insurance company Bipiemme Vita SpA by purchasing the 81% stake held by Covéa Coopération SA for approximately €310 million. The lender, which already holds 19% in Bipiemme Vita, is expected to receive an extraordinary dividend of €120 million at closing.

* Proxy advisers Glass Lewis and ISS urged shareholders of Credit Suisse Group AG to vote against absolving the Zurich-based bank's board and executives of legal liability for the events in 2020 that led to the collapse of U.S. investment fund Archegos Capital, Bloomberg News reported. Meanwhile, Glass Lewis and ISS recommended that investors reject a proposal by another proxy adviser, Ethos, for a special audit of Credit Suisse's dealings with collapsed U.K. specialty lender Greensill Capital (UK) Ltd.

Click here for more of the day's essential financial news in Europe.

MIDDLE EAST & AFRICA

* ADQ, formerly known as Abu Dhabi Developmental Holding Co. PJSC, said it acquired stakes in several publicly listed Egyptian companies, including Commercial International Bank (Egypt) SAE and Fawry for Banking Technology and Electronic Payments SAE, but did not specify the size or value of the stakes. The Abu Dhabi-based investment holding company's purchases included 340.1 million shares in CIB Egypt for $911.5 million and 215.1 million shares in Fawry for $68.6 million, along with a rights issue for another 201.6 million shares amounting to $54.9 million, according to Reuters. National Bank of Egypt said it has cut its stake in CIB Egypt to 0.336% from 9.504% by selling 181.8 million shares for $487.1 million, the news wire wrote.

* Qatar Islamic Bank QPSC's first-quarter net profit attributable to equity holders rose year over year to 855.1 million Qatari riyals from 750.0 million riyals.

* Union Bank of Nigeria PLC reported a group net profit attributable to equity holders of 16.80 billion Nigerian naira for the year ended Dec. 31, 2021, down from 18.54 billion naira a year earlier.

ASIA-PACIFIC

* Sri Lanka's Ministry of Finance suspended servicing of the country's external public debt for an interim period, pending the completion of the government's talks with the IMF and the preparation of a comprehensive debt restructuring program.

* China's CITIC Securities Co. Ltd. reported a net profit of 5.23 billion yuan for the quarter ended March, up 1.2% from a year earlier. Operating revenue dropped 7.2% to 15.22 billion yuan.

Click here for more of the day's essential financial news in Asia-Pacific.

Erin Tanchico and Ryan Jeffrey Sy contributed to this report.

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