Bank of America returned on profit
Bank of America Corp. announced earnings for the fourth quarter, supported by a single income and expenses outside its core business and lower costs to cover bad loans. During the same period a year ago, the bank registered a loss. The second bank assets in the U.S. announced that net profit, relevant to holders of ordinary shares is 1.58 billion, or 15 cents a share, a loss of 1.6 billion USD, or 16 cents a share prior year. Like other large U.S. banks, credit institutions reported a decline in investment banking and sales and trading revenue. Exposed to pressure to ensure balance, the bank sold assets and made the swap of shares, thanks to increase its capital. It benefits from profit before tax amounting to 5.3 billion dollars from sale of shares in China Construction Bank Corp., Profit by exchanging preferred shares and the sale of debt securities. The costs of litigation and claims accounting profit reduced by 3.7 billion dollars. The Bank has set aside 2.9 billion USD in the fourth quarter to cover bad loans, which is about one third less than the earmarked 5.1 billion USD a year ago. The credit institution working for the release of risky assets and announced that loans fell to 926 billion USD at 932 billion USD in the third quarter. In the investment banking division of loans and leases grew 29% yoy in the fourth quarter to 107.5 billion dollars by holding commercial loans have increased both the U.S. and abroad.
JP Morgan Chase with decreased profit
The US bank JP Morgan Chase announced a lower profit for the fourth quarter of 2011 on an annual basis due to weaker trading in its investment division, said the Air Force. The bank's net profit was 3.7 billion dollars, which represents a decrease of 23% compared to 4.8 million dollars earned in the fourth quarter of 2010. For all of 2011, JP Morgan profit increased by 9% to 18.98 billion dollars at 17.37 billion dollars in 2010. Announced earnings results were within analysts' expectations, but revenue for the fourth quarter is not justified forecasts a drop of 18% yoy to 21.47 billion dollars. According to Mike Holland, chairman of investment company Holland & Co in New York, for profit figures indicate "how well can be controlled JP Morgan in one of the most difficult periods". The CEO Jamie Dimon credit institution said that although she has represented adequately in the year given the economic environment, "returns for the fourth quarter is moderately disappointing". The shares of JP Morgan lowered its value by 2.9% in trading before the opening of the New York Stock Exchange.
Bank of America reported profit in Q3 2011
Bank of America announced third-quarter profit after the sale of assets and the accounting effects, although the main business of the bank looks unhealthy because of the reduction in revenue and rising costs. For many years, Bank of America headed the list of largest U.S. bank by assets, but now lost its first place JPMorgan Chase. Once dropped at the opening of the New York Stock Exchange, shares of Bank of America rose 1.3%. The accounting profits of the bank and the sale of assets made up 15% decline in revenue from lending in the third quarter.
"The published results do not correspond to reality", said Matt McCormick, portfolio manager of Bahl & Gaynor Investment Counsel. "I think without accounting adjustments profits would be zero. Revenues were particularly weak". In the third quarter, Bank of America announced a net profit of 5.9 billion USD or 56 cents per share, compared with losses of 7.6 billion USD or 77 cents per share a year earlier, when the reported accounting provisions for 10.4 billion USD. The bank records 9.8 billion USD before taxes from the sale of shares in China Construction Bank. Bank of America reported a loss before taxes of 2.2 billion USD, private assets and "strategic investments".
Morgan Stanley reported 2.2 billion USD profit in Q3 2011
Morgan Stanley stayed profitable in the third quarter, pretending to be better than expected. The bank failed to calm fears and that its exposure to the Eurozone can cause serious losses. The company reported net profit of 2.2 billion USD, James Gorman, executive director of Morgan Stanley said the bank was able "to successfully navigate through turbulent markets". The real profit of Morgan Stanley, however, is much lower. The results of the bank and those of other financial institutions on Wall Street, are inflated by accounting tricks that allow them to report earnings on the basis of the decline in value of own debt.
The adjustment of the debt score equals 1.12 USD of profit per share amounted to 1.15 USD, the bank account. The analysts had expected the bank to account for losses. For the third quarter, Morgan Stanley reported earnings of 9.9 billion USD compared with 6.8 billion USD for the same period last year. Profit of 1.15 USD per share versus a loss is 0.07 USD per share in the third quarter of 2010. In recent weeks, concerns about the stability of the bank increased by rumors of its huge derivative exposure to French banks, which in turn are at risk of exposure to debt of Eurorone countries.
UBS reported 39% profit decrease for Q3 2011
UBS AG, the largest Swiss bank, said its profit decline for the third quarter of 39%, taking into account losses of 2.3 billion USD in unauthorized trading in September. In the third quarter net profit of the bank fell to 1.02 billion Swiss francs (1.16 billion USD) from 1.66 billion francs for the same period last year, said in a statement on the Zurich-based institution. The average forecast of 11 analysts, was for earnings of 318 million francs, having earlier this month, UBS announced that revaluation gains on own debt to the bank and sales on own account will soften the losses from unauthorized Trade will lead to "moderate" profit for the quarter. UBS, which in August announced it would cut 3500 employees, plans to shrink its investment banking and direct more resources to fund the management of capital - a step that President Casper Viligar bank described as a "paradigm shift". In October, Finance Director Tom Naratil said that "economic uncertainty" has forced the bank's clients to trade less during the quarter and falling stock markets reduced the value of managed assets.
"The environment has deteriorated", said Qian Abuhoseyn, a London-based analyst at JPMorgan Chase & Co. "We see a much lower activity caused by uncertainty in the markets. Banks that are pressed, the first to revise their strategies".
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.
Deutsche Bank reported higher profit than the forecasts
Deutsche Bank AG, the largest investment bank in Europe by revenue, said third-quarter profit that exceeded analysts' expectations. Cites the best user revenues from banking and asset management, the softening effect of the decline in investment banking. The net profit of Germany's biggest bank reached 725 million EUR (1 billion USD) after losing 1.21 billion EUR for the same period last year, when Deutsche Bank acquired Deutsche Postbank AG. Analysts expected profit of 343 million EUR. Earlier this month the Frankfurt-based Deutsche Bank lowered its forecast for annual profit and announced cuts of 500 jobs.
"The third quarter was very small for investment banks and perhaps will be the bottom. However, this depends on the outcome of the debt crisis", said Olaf Kayseri, an analyst at Landesbank Baden-Wuerttemberg in Mainz. "The key to Deutsche Bank is winning market share from its competitors, despite declining revenues". Since the beginning of the year the share price of Deutsche Bank has fallen by about 27%, which the company's market capitalization has fallen to 26 billion. For comparison, Europe Banks and Financial Services Index, tracking shares of 46 European financial institutions fell by 29%. Profits from consumer banking rose 27 percent to 310 million EUR, supported by Postbank, whose acquisition doubled clients of Deutsche Bank to about 29 million department management of capital, aided by the acquisition of Sal. Oppenheim, announced 100% rise in profit to 186 million EUR. The division of Investment Banking reported a decline in profit before tax to 70 million EUR from 1.1 billion EUR in the same period last year. This result was lower than analysts expected 89 million EUR. Profits suffered by the bank 310 million EUR from the VAT increase in Germany.
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.
Standard Chartered reported higher profit for Q2 2011
The British bank Standard Chartered, which operates mainly in Asia, said its first half profit before tax increased by 17% over the same period of 2010 to 3.6 billion USD, announced the Air Force. The profits rose in all regions where the bank operates, with the exception of its biggest markets - India, where registered a decline of 5%. For this particular result of the bank blamed rising interest rates, increased competition and changes in the regulatory framework of the financial sector. The earnings of Standard Chartered rose 23% in Hong Kong 34% Singapore 14% in South Korea and 19% in China. Growth in the Middle East is 4% in Africa - 10%, the Americas and Europe - 11%.
"The strong performance of the group during the first half of 2011 should be considered in the context of current economic uncertainty, especially in the West, and ongoing global changes in the rules", said Chairman of the Board of Directors of the Bank Sir Jin Peas. "Standard Chartered had a strong start to 2011 and this momentum continued into the second half of the year", he added.
Half-year profit of Barclays decreased with 30%
The British bank Barclays announced that its profit before tax for the first 6 months of the year was 2.6 billion pounds, which is 33% less than the same period of 2010. However, it includes a fee of £ 1 billion to settle claims for lost sales of insurance protection contributions. The bank also indicated that revenue from its investments in bonds and commodities fell. Most of the profits of the credit institution comes from its unit investment banking Barclays Capital, which includes part of the former U.S. bank Lehman Brothers, but even there profit decreased by 9% annually to 2.3 billion pounds. Despite reduced earnings chief executive of Barclays, Bob Diamond said he was pleased with the results in this economic environment, defined by him as "gray". He claimed that the bank has implemented and its agreement with the government to lend British businesses.
"We have delivered on their commitments under the Merlin and increased by 20 billion pounds of new lending business in the first half of the year", said Diamond. This figure also includes loans amounting to 7 billion pounds for small and medium businesses.
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