Financials Weekly Notes: State Street, Citigroup, Credit Suisse

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Bank stocks continued to track events in Europe last week. The shares more than made up for the decline in prices over the beginning of the week towards the end. The equity market saw a loss in value over the first two days of the week as the initial euphoria surrounding Spain’s EUR 100 billion bailout wore out. Rising yields for Spanish and Italian government notes also renewed fears that the troubled nations are heading towards a bankruptcy. But the market turned around later in the week with bank stocks in particular receiving a major boost on Friday when central banks agreed to act jointly to avoid negative fallout surrounding the European debt crisis.

There were notable events to report for State Street (NYSE:STT), Citigroup (NYSE:C) and Credit Suisse (NYSE:CS) this week.

State Street

State Street is reportedly in the final stages of a deal with Goldman Sachs (NYSE:GS) to acquire the latter’s hedge fund administration business. The deal which could be finalized as early as this month will raise the size of the custody bank’s hedge fund assets under management to more than $700 billion, making it the largest hedge fund administrator in the world.

Goldman has been looking to exit the business since early this year as the SEC intends to monitor hedge fund administrators more closely after the Madoff Ponzi scheme came to light. The added oversight is bound to add to costs without helping revenues.

You can read more about this deal in our article State Street To Pick Up Goldman’s Hedge Fund Admin Unit

See our full analysis for State Street

Citigroup

Citigroup announced one of its first expansion plans in quite a while with its decision to bulk up its credit card business in India. In recent years, Citigroup has primarily been focused on cutting down operations around the world in the aftermath of the economic downturn of 2008.

The global financial giant intends to add a million new credit card customers in India within the next three years – increasing the number of cards in circulation in the country from around 2.2 million to more than 3.2 million. Citi intends to hire as many as 2,000 people in the country over the next year to achieve this goal.

Read more about Citigroup’s credit card business in India and its future plans in our article Citigroup Charges To $36, Bets Big On India’s Credit Card Market.

See our full analysis for Citigroup

Credit Suisse

Credit Suisse is admittedly looking for potential acquisition targets to grow its private banking business. The second largest Swiss bank, which has been reorganizing its business in recent quarters with substantial job cuts, recently closed the acquisition of HSBC’s private banking business in Japan.  The bank also acquired a majority stake in the Brazilian private banking, asset management and investment banking business Hedging-Griffo early this year.

To know more about Credit Suisse’s private bank acquisition strategy and its impact on its overall business, read Credit Suisse’s Global Private Banking Push Supports $27 Stock Value.

See our full analysis for Credit Suisse

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Bank stocks continued to track events in Europe last week, more than making up for the decline in prices over the beginning of the week towards the end. The overall equity market saw a loss in value over the first two days of the week as the initial euphoria surrounding Spain’s EUR 100 billion bailout wore out. Rising yields for Spanish and Italian government notes also renewed fears that the troubled nations are heading towards a bankruptcy. But the market turned around later in the week with bank stocks receiving a major boost on Friday when central banks agreed to act jointly to revive the flagging European economy.

There were notable events to report for State Street (NYSE:STT), Citigroup(NYSE:C) and Credit Suisse (NYSE:CS) this week.

State Street

State Street is reportedly in the final stages of a deal with Goldman Sachs (NYSE:GS) to acquire the latter’s hedge fund administration business. The deal which could be finalized as early as this month will raise the size of the custody bank’s hedge fund assets under management to more than $700 billion, making it the largest hedge fund administrator in the world. Goldman has been looking to exit the business since early this year, as the SEC intends to monitor hedge fund administrators more closely after the Madoff Ponzi scheme came to light. The added oversight is bound to add to costs without helping revenues.

You can read more about this deal in our article State Street To Pick Up Goldman’s Hedge Fund Admin Unit

See our full analysis for State Street

Citigroup

Citigroup announced one of its first expansion plans in quite a while with its decision to bulk up its credit card business in India. In recent years, Citigroup has primarily been focused on cutting down operations around the world in the aftermath of the economic downturn of 2008.

The global financial giant intends to add a million new credit card customers in India within the next three years – increasing the number of cards in circulation in the country from around 2.2 million to more than 3.2 million. Citi intends to hire as many as 2,000 people in the country over the next year to achieve this goal.

Read more about Citigroup’s credit card business in India and its future plans in our article Citigroup Charges To $36, Bets Big On India’s Credit Card Market.

See our full analysis for Citigroup

Credit Suisse

Credit Suisse is admittedly looking for potential acquisition targets to grow its private banking business. The second largest Swiss bank, which has been reorganizing its business in recent quarters with substantial job cuts, recently closed the acquisition of HSBC’s private banking business in Japan. The bank

More information about this can be found in our article, Credit Suisse’s Global Private Banking Push Supports $27 Stock Value.

See our full analysis for Credit Suisse

Submit a Post at Trefis Powered by Data and Interactive ChartsUnderstand What Drives a Stock at Trefis

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