US regional banks build stronger safety nets as CRE pain lingers

U.S. banks have boosted their provisions for credit losses as deteriorating commercial real estate (CRE) loans and high interest rates fuel fears of defaults, the regional lenders’ second-quarter results show.

Services of South African lenders Capitec Bank and Absa have been fully restored after experiencing disruptions early on Friday, both companies said, as a software update wreaked havoc on computer systems globally.

Several U.S. mid-sized and regional banks reported a fall in their second-quarter profit, as income from charging customers interest was squeezed by higher deposit costs and tepid demand for loans.

Regions Financial reported a 14% fall in its second-quarter profit on Friday, as the lender earned less from customers’ interest payments.

Credit card giant American Express raised its full-year profit forecast on Friday, as its wealthy customers persisted in splurging on travel, dining and entertainment.

Former PIMCO CEO Mohamed A. El-Erian will step down from the board of Barclays , the British bank said on Friday, following his appointment as chair of sportswear brand Under Armour Inc .

The Federal Court of Australia fined a local unit of American Express (AmEx) A$8 million ($5.36 million) for breaching design and distribution rules for two of its co-branded credit cards, the Australian corporate regulator said on Friday.

A former Citigroup managing director who said she was fired because she refused to mislead a federal regulator about the bank’s risk management accused Citigroup’s chief operating officer of intentional deception, according to an amended lawsuit filed late on Thursday.

Citigroup reached an agreement with the Bourse de Montreal to resolve allegations that it failed to report positions on options contracts exceeding a certain threshold, the exchange said on Thursday.

Dallas Federal Reserve President Lorie Logan said on Thursday the U.S. central bank is making progress in making sure banks can tap Fed emergency liquidity if needed.

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