16/04/2026

BIZ & FINANCE THURSDAY | APR 16, 2026

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Large American banks report higher profits

Surging AI demand boosts orders for ASML THE HAGUE: Dutch tech giant ASML, which makes cutting-edge machines to manufacture semiconductor chips, said yesterday that rapidly expanding AI-related investments had pushed up net profits as it also hiked its sales forecast for 2026. ASML, Europe’s biggest tech firm by market value, is a critical cog in the global economy, as the semiconductors crafted with its tools power everything from smartphones to missiles. In its latest quarterly earnings statement, the Dutch-based firm reported net profits of €2.76 billion (RM12.8 billion), compared to €2.4 billion in the first quarter of 2025. “The semiconductor industry’s growth outlook continues to solidify, driven by ongoing AI-related infrastructure investments,“ said the firm’s CEO Christophe Fouquet. Investors appeared to shrug off the news, with ASML shares rising just 0.2% at the opening bell of the Amsterdam stock market. “Clearly 2026 is panning out very nicely. It’s a very strong year. We’re looking at a strong growth year,“ said chief financial officer Roger Dassen. The company raised its prediction for full-year sales to between €36-40 billion from a previous estimate of €34-39 billion. That forecast range “accommodates potential outcomes of ongoing discussions around export controls”, said Fouquet. ASML has been caught in the crossfire of a tech spat between the United States and China and has previously warned its Chinese sales would “decline significantly” this year. Washington is leading efforts to curb high-tech exports to China over fears they could be used to bolster the country’s military. Beijing has reacted furiously to the measures, describing them as “technological terrorism”. A breakdown of ASML figures shows that 33% of sales went to China in 2025, compared to 41% in the previous year, with China being the firm’s top customer in both years. The firm said total revenue in the first quarter was €8.77 billion, at the “high end” of what the company had earlier predicted. This compared to €7.8 billion in the first quarter of last year and €9.7 billion in the fourth quarter of 2025. The company issued a new forecast for the second quarter, of between €8.4 billion and €9 billion. Fouquet said ASML customers were “accelerating their capacity expansion plans for 2026 and beyond”, resulting in a “very strong” order intake for the firm. “These business dynamics underpin our expectation that 2026 will be another growth year for all our businesses,“ he said. In January, ASML announced a shake-up in its organisation that was expected to result in the loss of around 1,700 jobs in the Netherlands and United States, mainly from leadership roles. The firm employs roughly 44,000 staff worldwide. – AFP

NEW YORK: Large banks reported higher profits on Tuesday, pointing to resilience among US businesses and customers despite spiking oil prices from the Middle East war. JPMorgan Chase notched gains across leading consumer and investment bank categories. CEO Jamie Dimon described the US economy as still healthy but facing an “increasingly complex set of risks”, including volatile energy prices, trade uncertainty and large deficits. Profits at the largest US lender by assets came in at US$16.5 billion, up 13% from the year-ago level, while revenues jumped 10% to US$49.8 billion. The spike in oil prices has translated into national gasoline prices above US$4 a gallon for the first time since August 2022, a political headwind for US President Donald Trump. While higher gasoline prices pose a greater strain on lower income households, Dimon said a solid US employment market remained a supporting factor. “Always the most important thing is jobs,” Dimon said on a conference call with journalists. o Executives see consumers surviving oil spike, for now

consumers and businesses we serve remains strong, though the impact of higher oil prices will likely take some time to materialise,” Scharf said. “We will continue to monitor trends and respond accordingly.” A looming question around this earnings cycle has been anxiety in financial circles over private credit after a wave of redemption requests to investment giants in recent weeks. In October, Dimon issued a colourful warning on the topic after the bankruptcy of Tricolor, a subprime auto lender, saying, “when you see one cockroach, there are probably more”. Dimon expressed measured concern on Tuesday, saying that in general, private credit quality has not deteriorated significantly, although “there are pockets where it has”, he told an analyst conference call. “So we’ll be watching it closely. The big point to me is...that I don’t think it’s systemic.” Dimon’s comments were consistent with those Monday by Goldman Sachs Chief Executive David Solomon, who expects greater losses with the turn in the credit cycle when there is a recession or another triggering event. JPMorgan finished down 0.8%, while Citi climbed 2.6%. Wells Fargo, which missed analyst estimates on revenues and some other benchmarks, dropped 5.7%. – AFP

“And there’s plenty of jobs. Unemployment is relatively low.” Some of the drivers of JPMorgan’s higher profit were increased consumer deposits and credit card balances that more than offset the impact of lower interest rates. At Citigroup, profits climbed 42% to US$5.8 billion, while revenues rose 14% to US$24.6 billion. The lender enjoyed broad-based growth across its businesses, led by its markets and services divisions. But the bank raised its provision for credit losses by about US$600 million, citing increased uncertainty in the macroeconomic outlook. Chief financial officer Gonzalo Luchetti described the US consumer as resilient, noting a stable level of delinquent payments over time. The increased provisions are “really out of prudence that we want to make sure that we are always well reserved for a range of environments”, Luchetti said on a conference call. Wells Fargo reported first-quarter profits of US$5.2 billion, up 7% from the year-ago level. Revenues rose 6% to US$21.4 billion. Chief executive Charlie Scharf attributed the higher profits to increased loans and deposits, also describing client credit as solid. “While markets have been volatile, we still see continued resiliency in the underlying economy and the financial health of the

A man walks from a branch of Wells Fargo bank in the University District of Seattle, Washington. – REUTERSPIC

Maine to become first US state to bar major data centres NEW YORK: Legislators in Maine on Tuesday endorsed a moratorium on building large data centres, becoming the first US state to try and rein in rampant construction driven by the AI race. to a rapidly evolving industry,“ said Sachs. the power-hungry facilities are straining local grids and driving up electricity bills.

authorities from issuing permits for data centers with electrical capacity exceeding 20 megawatts. Maine is among the American states that have seen home electricity bills soar in recent years, according to the US Energy Information Administration. Data centre projects were rejected in two cities in the state last year by elected officials who accused developers of concealing how much electricity and water the facilities would use, local media reported. – AFP

It also calls for the creation of a council to assess risks and benefits of proposed data centres and provide input for planners. Currently, there are no large-scale data centres in Maine, but some projects have been disclosed in recent weeks, according to Sachs. Data centre construction spending in the United States has surged in recent years, with tech firms pouring tens of billions of dollars into building out infrastructure amid the race to lead in AI. The Maine law would prohibit local

“People and communities across the state have been asking the Legislature to take action and temporarily pause these projects, which could have significant impacts on ratepayers, our electric grid and our environment.” A boom in generative artificial intelligence has sent data centre demand skyrocketing, with dozens of projects springing up across the United States. The buildout comes at a cost, as

Data centers also typically have massive footprints, taking up land that could be used for housing, businesses, recreation or green space. Public sentiment is hardening, with a recent Quinnipiac University poll finding 65% of Americans oppose having a data centre built in their community. If signed into law, the Maine bill would pause new data centre construction until November of next year.

The bill was passed by the state house and senate and is on its way to the desk of Democratic Governor Janet Mills, according to its sponsor, Representative Melanie Sachs. It will become law if not vetoed by Mills. “This bill positions Maine to respond deliberately and responsibly