Citigroup reported higher profit for Q3 2011
The U.S. bank Citigroup Inc announced higher profit in the third quarter, having to cover bad loans were allocated fewer funds. The net profit for the period amounted to 3.77 billion USD or 1.23 USD per share, which is a considerable increase on an annual basis, for the same period a year earlier, profit was 2.17 billion USD, or 72 cents per share.
The value of 39 cents per share came from profit of 1.9 billion USD before taxes, received from the increase in credit spreads during the quarter. The bank, which received two rescue package by the U.S. government in the midst of financial crisis, managed to reduce its portfolio of bad loans as non-performing loans fell to 7.95 billion USD from 12.46 USD dollars for the same quarter of previous year .
Since the beginning of the year the value of the shares of Citigroup fell 40% in line with the drop in prices of securities of other large U.S. banks.
JP Morgan with 4% profit decrease for Q3 2011
The American Bank J.P. Morgan Chase & Co. announced that its profit for the third quarter fell by 4% annually to 4.26 billion dollars or 1.02 dollars per share compared to 4.42 billion dollars and 1.01 dollars per share in the third quarter of 2010. The revenues have remained almost unchanged at a level of 23.8 billion dollars, while adjusted earnings reached 24.4 billion dollars, registering an increase of $ 100 million. The analysts expected profit of 91, however cents per share on revenue of 23.3 billion dollars, according to a survey of FactSet Research. Within a quarter credit institution registered disposable earnings of 29 cents per share of the debit adjustment evaluation of its investment division, resulting from the increase of its credit spreads.The division to invest in unlisted companies announced a loss of 9 cents per share. Bank lost 15 cents per share of costs associated with mortgage securities. From J.P. Morgan said they faced a challenging program in terms of banking and capital markets, but so far retained its first place ranking in the lowest fees for investments as global banking.
HSBC reported 58% profit increase for the first quarter
The profit of the Europe's largest bank HSBC has increased by 58% in first quarter, due to the lower taxes and lower provisions for bad loans. The main profit of HSBC, however, decreased slightly after the costs for the period increased significantly, while the revenue is decreasing slightly. The HSBC net profit was amounted to 4.15 billion dollars for the first quarter compared with 2.6 billion dollars a year ago. The increase in positive financial result is due largely to lower taxes and increases of the Latest Gold Prices.
However, the profit before tax was amounted to $ 5.5 billion compared with $ 6 billion an year ago. The market expectations were for a higher profit before taxes of $ 6 billion.
The HSBC's revenue decreased slightly to 17.04 billion dollars compared with 17.9 billion dollars last year, mainly due to smaller revenues from consumer lending in the U.S. The aim of the new chief executive Stuart Gulliver of the Bank is to reduce costs to improve profitability of HSBC. In his words, HSBC will seek to improve not only profit from emerging markets, but also from developed markets such as Europe. The growth of HSBC in the first quarter is the strongest in Asia, Latin America and the Middle East, while in Europe, profit before tax have fallen sharply from about 65%, while in the U.S. fell by 60 per cent. The share of cost of revenues of the bank increased to 60.9 percent in the first quarter compared with 49.6 percent a year ago. The increase in operating costs comes as a result of the larger salaries of staff in the investment banking division of HSBC.
Sharp decrease of Barclays’ profit
The British bank Barclays said its profits decline by 5% in the first quarter, the main reason is the strong decrease in the revenues of the investment banking unit. The profit of the financial institution for the period was 1.01 billion pounds after the same period last year it was 1.07 billion pounds. Profit before tax, which is monitored more closely by investors, fell by 9 per cent annually to 1.66 billion dollars. The revenue Unit Barclays Capital investment banking shrank by 15 percent to 3.85 billion pounds. The decline in revenue from trading fixed income instruments, currencies and raw materials is 22 percent. According to the report of the financial institution the ratio of tier one capital has improved by 11 per cent since the end of 2010 was 10.8 per cent. Following the publication of results for first quarter of Barclays shares lost 3.4 per cent of its value.
Wells Fargo’s profit is increasing
The fourth-largest U.S. bank Wells Fargo reported 48% jump in profit in the first quarter after holding its lending increased and decreased troubled assets. The shares of Wells Fargo, however, cheaper by almost 5% to 28.60 dollars in early trading on the New York Stock Exchange. The net profit of San Francisco-based financial services company rose to 3.76 billion dollars, or 67 cents a share, from 2.55 billion dollars, or 45 cents a share, a year ago. The revenues in the first quarter but fell by 5.2 percent annually to 20.3 billion dollars. The market forecasts were for net profit per share from 66 cents to 21.2 billion dollars.
"While the economy continues its uneven recovery, our business customers increased withdrawals and loans using lines of credit - a reliable sign that businesses are again investing for growth," said president and CEO of Wells Fargo, John Stumpf in a statement. The consumers, however, "continue to fluctuate in the drawing of new loans," he said. The net interest margin for the bank declined to 4.05 percent for the quarter from 4.27 percent a year earlier.
Barclays reported 6.07 billions GBP profit for the 2010
The British banking giant Barclays said profit before tax amounted to 6.07 billion pounds in 2010. This is about 30 per cent better than achieved in 2009 result, when the financial institution won 4.59 billion pounds. The total revenues of the bank amounted to 31.44 billion dollars. The good news in the report are set aside to cover bad loans, reserves fell by 30 percent annually to 5.67 billion pounds. The remuneration linked to performance of banks has fallen by 7 percent to 3.4 billion pounds in the investment banking division - Barclays Capital, the decrease was 12 per cent. The overall staff costs rose by 20 percent to 11.9 billion pounds and 3.5 billion of them were paid as bonuses. In Barclays Capital bonuses were EUR 2.6 billion pounds as profit almost doubled in 2010, reaching 4.78 billion pounds. After the publication of the results of Barclays shares rose 3 percent. The financial report is about 30% better than the previous year, there was a significant drop in bad loans. Now the bank is stable and this is good prove for the end of the financial crisis.
Swiss National Bank with high yearly profit drop
The Swiss National Bank (Schweizerische Nationalbank) announced that it has made to a record loss in 2010 after the fall of the euro erodes its foreign reserves. A negative result is estimated at 21 billion Swiss francs (21.8 billion US dollars), said in a statement the bank. This is about 4% of the GDP. The impairment losses on securities have been about 26 billion francs, a gold investment bank has delivered a profit of 6 billion. The Swiss National Bank under the leadership of Philip Hildebrand, make record purchases of foreign currency in the first half of 2010 to devalue the Swiss franc appreciated that threatened to undermine economic recovery and cause deflation. Although this policy was discontinued in June, ever since the debt crisis of the Old Continent and the euro hit at the end of 2010 francs climb of historical high against the single currency from 1.2402 francs per euro.
"The task of the central bank has failed to win, but to ensure price stability," said Fabian Heller, an economist at Credit Suisse. "It's hard to say what would happen if it was the intervention of the bank, but it is extremely hard to fight the markets."
Bank of America with 7.3 billion loses for the quarter
The largest U.S. bank - Bank of America, announced a loss of 7.3 billion dollars for the third quarter because of high costs associated with implementation of new rules of financial regulators in the U.S. in terms of consumer bank accounts and credit cards. The shares of financial giant cheaper by two percent in the hours before the start of the regular trading session on the New York Stock Exchange. The loss, which accounted for one share in the third quarter amounted to 77 cents. A year ago, Bank of America announced a loss of $ 1 billion, or 26 cents a share. If we exclude the exceptional income and expenses, the financial results of Bank of America for the past quarter was positive and amounted to 3.1 billion dollars, or 27 cents a share. This was more than forecast by analysts of 14 cents per share. The revenues of the bank without interest expense increased by 2% yoy to 26.98 billion dollars. Big loss for the third quarter due to the voluntary provision of 10,4 billion dollars, which Bank of America has set aside because of expectations that the laws on consumer protection relating to banking and adopted by the government this year, may reduce by up to 80% of the revenues of the bank debit cards. JPMorgan, the second largest U.S. bank in assets, announced a profit of 4.42 billion dollars for the third quarter. Citigroup, the third largest, came to 2.17 billion dollars profit.
EFG Eurobank with 61% profit decrease
The Greek bank EFG Eurobank announced its profits drop 61 percent in the second quarter on an annual basis. The main reason for this state increased provisions to cover bad loans, says Wall Street Journal. Earnings per second largest Greek bank's assets amounted to EUR 34 million after the second quarter of the year it was 88 million euros. Analysts estimates were for a profit of 31.9 million. The provisions for bad loans rose 21 percent to 346 million, the report shows. Expectations were for a more limited growth to 345.2 million. Net interest income Eurogank EFG for the second quarter fell by 4.9 percent annually to 561 million. Markets, however, expected that this indicator amounted to 568.6 million. In the first half year performance in Central and Eastern Europe is improving, it has achieved a profit of 12 million. For the first half of last year the region has brought loss of 26 million. Earlier this week, the other leading Greek banks also have announced their results. Piraeus has managed to achieve a profit of 3 million, while National Bank of Greece suffered a profit decline of 68 per cent.
Alpha Bank with 62% decrease in the profit for the second quarter
The Greek bank - Alpha Bank announced a significant drop in profit for the second quarter. Degradation results due to increased provisions to cover bad loans and reduced income from dividends from subsidiary banks. The profit financial institution for the second quarter was 48.7 million, down 62% over the same period last year. Earmarked as a provision to cover bad loans, money does have risen by 31% to 221.3 million. Preliminary analyst expectations were for a much weaker results, expected a profit of 33.8 million. In the explanatory notes to the accounts the Executive Director of Alpha Bank Mantsunis Demetrius believes that the bank will be able to cope with much more severe economic conditions. His confidence is based on good performance of the financial institution of stress tests conducted by the European Central Bank. For the first six months of the year profit of Alpha Bank melts with 82.2 per cent to 38.2 million. the bank realized good financial strategy for Remortgage Quotes, but this was not enough for positive financial result.
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