Economy

JPMorgan Chase earnings rise, avoids more reserves for bad loans

JPMorgan Chase earnings rise, avoids more reserves for bad loans”

Rather than building loan-loss reserves, as it had done aggressively in the first half of the year, JPMorgan actually reduced them by $569 million in the quarter, citing a runoff in its mortgage portfolio.

Citi has faced renewed regulatory scrutiny since an "error " led the bank to mistakenly send Revlon creditors US$900 million of its own funds in August.

Wells Fargo had launched a broad cost-cutting drive in July after it posted its first quarterly loss since 2008 and slashed its dividend to preserve capital.

(MENAFN - Baystreet.ca) Citigroup (NYSE:C) reported on Tuesday better-than-expected results for the third quarter, sending the stock up as the company's credit costs from the pandemic stabilized.

Despite uncertainties, investors kept hopes high on a COVID-related economic stimulus this week.

The New York-based bank's total net income applicable to common shareholders fell to US$3.23 billion, or US$1.40 per share, in the quarter ended Sept 30, from US$4.91 billion, or US$2.07 per share, a year earlier.

More news: Covid-19 pandemic to cost United States $16tn: Ex-Treasury Secy

Corbat also noted: "The backbone of our global network, treasury and trade Solutions experienced strong client engagement in the face of low interest rates".

Net income declined 34 percent from the prior-year period, largely driven by the lower revenues, an increase in expenses and higher credit costs.

Total period-end loans fell almost 4% to $920.1 billion, hurt by a $30 billion fall in commercial loans, a bigger slump than expected, Jefferies analysts said.

The U.S. Federal Reserve placed restriction's on Wells' balance sheet as punishment for the sales abuses, to be lifted only when the management team can prove they have sufficiently improved risk management and controls.

Analysts from brokerage Oppenheimer calculated that without the penalty, core operating earnings per share would have been $1.55.The bank, set to exchange long-time Chief Executive Mike Corbat for Wall Street's first woman CEO, Jane Fraser, early next year, faces a series of challenges with its retail business as recession grips American households.

Analysts expected a profit of 45 cents, according to Refinitiv data.



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