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JP Morgan Chase, Wells Fargo and Citigroup see earnings fall

Published 14/10/2016

Wells Fargo is still reeling from a scandal that saw its chief executive abruptly retire earlier this week
Wells Fargo is still reeling from a scandal that saw its chief executive abruptly retire earlier this week

JP Morgan Chase, Wells Fargo and Citigroup all said that their earnings fell on Friday as the US bank reporting season kicked off.

Wells Fargo, still reeling from a scandal that saw its chief executive abruptly retire earlier this week, saw earnings dip from 5.8 billion US dollars (£4.7 billion) to 5.6 billion US dollars (£4.6 billion) in the third quarter compared with a year earlier.

The bank last month reached a 185 million US dollars (£152 million) settlement with US regulators after allegedly opening up two million bank and credit card accounts without customer consent in a bid to meet sales goals.

Citigroup saw profits drop nearly 11% in the third quarter compared with the same period last year, but managed to outperform earnings estimates of 1.15 US dollars (£0.94) at 1.24 US dollars (£1.02).

However, net income dropped from 4.3 billion US dollars (£3.5 billion) to 3.8 billion US dollars (£3.1 billion) compared with the third quarter of 2015. Revenue at the New York-based bank fell 5% to 17.8 billion US dollars (£14.6 billion).

Meanwhile, JP Morgan reported an 8% drop in third quarter profits.

The bank reported earnings of 6.3 billion US dollars (£5.1 billion), down from 6.8 billion US dollars (£5.6 billion) in the same period last year. It still managed to beat Wall Street forecasts for earnings of 1.39 US dollars (£1.14) per share at 1.58 US dollars per share (£1.30).

Revenue increased to 24.7 billion US dollars (£20.3 billion), from 22.8 billion US dollars (£18.7 billion) during the same period last year.

While profits at the banks fell, the numbers still managed to beat analyst estimates.

Press Association

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