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BofA Q3 profit climbs YOY; Citi to pay $33.4M to settle LIBOR case

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BofA Q3 profit climbs YOY; Citi to pay $33.4M to settle LIBOR case

The earnings spotlight today is on Bank of America Corp., PNC Financial Services Group Inc., First Horizon National Corp., Wells Fargo & Co. and First Republic Bank.

BofA's net income applicable to common shareholders climbed to $5.12 billion from year-ago quarter's $4.45 billion. It recorded a provision for credit losses of $834 million and net charge-offs of $900 million in the third quarter.

First Horizon posted a 6.5% year-over-year rise in third-quarter results, while PNC recorded a 14.1% year-over-year rise in third-quarter profit. In addition, PNC reported a provision for credit losses of $130.0 million, which included $10 million related to Hurricanes Harvey and Irma.

In government and regulatory news, the House Financial Services Committee advanced 22 bills forward for full House consideration, including H.R. 2706 or the "Financial Institution Customer Protection Act of 2017" and H.R. 3312 or the "Systemic Risk Designation Improvement Act of 2017" both financial deregulation bills introduced by Rep. Blaine Luetkemeyer, R-Mo.

Among possible candidates to head the Federal Reserve when Janet Yellen's term expires in February 2018, Fed board Gov. Jerome Powell is U.S. Treasury Secretary Steven Mnuchin's bet, sources told Politico. Meanwhile, Stanford University economist John Taylor was interviewed for a possible nomination to be the next Fed chair, a White House official told The Wall Street Journal.

In banking news, Citigroup Inc. agreed to pay $33.4 million to settle a U.S. class action lawsuit over alleged rigging of the London Interbank Offered Rate, Reuters reports. In addition, Frankfurt-based Deutsche Bank AG and London-based HSBC Holdings Plc — also defendants in the lawsuit filed by futures traders — agreed to pay $80 million, and $18.5 million, respectively, to resolve the case.

Upon conclusion of Brexit negotiations, JPMorgan Chase & Co. will move 60 jobs to Paris, a source told the Financial Times.

In Texas, First Financial Bankshares Inc. is buying Commercial Bancshares Inc. in a stock deal valued at approximately $59.4 million.

Data solutions providers Research Now Group Inc. and Survey Sampling International LLC are merging. Private equity firms Court Square Capital Partners LP and HGGC LLC will remain the majority stakeholders of the combined business.

The SEC is seeking to revoke the registration of United Mortgage Trust's securities, claiming that the investment company has not filed periodic reports since Sept. 15, 2015.

Nasdaq Inc.'s Nasdaq CXC Ltd. and Ensoleillement Inc. have applied with the Ontario Securities Commission to operate as exchanges in Canada.

And in fintech news, an Equifax Inc. spokeswoman told Reuters that the credit reporting agency's website was not subjected to another cyberattack. The company had to take a webpage offline yesterday after technology news website Ars Technica reported that the site was delivering fake Adobe Flash updates containing adware. "The issue involves a third-party vendor that Equifax uses to collect website performance data, and that vendor's code running on an Equifax website was serving malicious content," the spokeswoman said. The vendor's code has now been removed.

In other parts of the world

Asia Pacific: US urges World Bank to inspect China lending; 3 Iranian banks eye India branches

Europe: HSBC gets new CEO; 3 global banks settle LIBOR case; ASR issues CoCos

Middle East & Africa: World Bank cuts SSA growth outlook; Bank Muscat's 9-month profit drops 4.9%

The day ahead

Early morning futures indicators pointed to a higher opening for the U.S. market.

In Asia, the Hang Seng increased 0.06% to 28,476.43, and the Nikkei 225 increased 0.96% to 21,155.18.

In Europe, around midday, the FTSE 100 was down 0.29% to 7,543.45, while the Euronext 100 was up 0.17% to 1,049.39.

On the macro front

The consumer price index, the retail sales report, the business inventories report, the consumer sentiment report, the Treasury budget and the Baker-Hughes Rig Count report are due out today.

The Daily Dose is updated as of 7:30 a.m. ET. Some external links may require a subscription.