Weekly Global News Wrap: JPMorgan cleared to make $15b in new loans to small firms; BNP Paribas posts 33% crash in net income

And Norwegian wealth fund backs Barclays’ climate talks.

From Reuters:

JPMorgan said on Friday that the US Small Business Administration gave it the green light to make $15b in new loans to some 211,000 business customers hurt by the coronavirus pandemic.

It expects to process a total of $29b in loans for around 239,000 customers as part of the government’s Paycheck Protection Program (PPP). The average of these loans is $123,000, according to a press release.

JPMorgan said that half of the PPP loans it processed went to companies with fewer than five employees, and 75% of the loans were for less than $100,000.

From CNBC:

BNP Paribas reported a fall in net income for the Q1 2020 as the coronavirus has had three “major negative impacts” on its balance sheet.

The French lender reported a net income of $1.42b (EUR1.3b) in Q1, down 33% YoY from $2.07b (EUR1.9 b) a year ago, according to results released on 5 May.

The bank set aside $547m (EUR502m) for potential loan losses as a result of the ongoing pandemic. It also reported a $200m (EUR184m) revenue loss from new dividend restrictions and a $419m (EUR384m) drop in market valuation.

From Reuters:

Norway’s sovereign wealth fund will vote in favour of a resolution committing Barclays to tackling climate change at the bank’s annual general meeting on 7 May, instead of a separate shareholder one, the fund said on Friday.

The resolution was put forward by the bank’s board in response to pressure from investors and the campaign group ShareAction which had put forward its own resolution.

The Norwegian wealth fund holds a 2.94% stake in Barclays which was worth $1.2b at end-2019.

Photo courtesy of Wikimedia Commons.