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.
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.
JPMorgan with strong financial report
The net profit of U.S. financial giant JPMorgan Chase has made a solid growth of 67% annually after the bank reduced its provisioning for potential losses from bad loans. JPMorgan is the first major U.S. banks, which exports its financial statements for the first quarter and improving performance is probably a reflection of a strong period for the entire banking sector. The profit of JPMorgan noted significant growth in recent quarters, mainly due to improved asset quality her This allowed the bank to set aside fewer reserves with which to cover losses from bad loans. The provisions for problem loans fell to 1.17 billion dollars during the first three months of the year compared with 7.01 billion a year ago and 3.04 billion for the previous three months. In the first quarter JPMorgan net profit of 5.56 billion dollars or 1.28 dollars per share, compared with 3.33 billion dollars, or 74 cents a share, a year ago. The revenue fell 8.5 percent compared to first quarter of last year to 25.79 billion dollars. The market expectations were for less profit per share of 1.16 dollars less revenue amounted to 25.27 billion dollars.
Commerzbank reported positive financial year
The German bank Commerzbank said it has issued a profit in the fourth quarter of 2010. With the main merit of this is the contraction of reserves to cover possible bad loans. The profit of Commerzbank, which is the second largest bank in Germany amounted to 257 million EUR. For comparison, in the same quarter of 2009, financial institution record loss of 1.86 billion. The net interest income of the bank fell from 1.88 billion to 1.68 billion EUR, mainly due to a decline in interest rates of around 10 per cent, the report shows. The provisions have shrunk by nearly half, in the last quarter of 2010 they were 595 million EUR, after the previous year were 1.32 billion. The expectations for this year to decline by at least 200 million EUR to a maximum of 2.3 billion provision for the whole year. The results from trading operations were placed on the profit of 384 million EUR at 574 million EUR loss for the last three months of 2009. The operating profit of Commerzbank for the period was 256 million EUR.
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.
Investment banking brought high profits of UBS
The biggest Swiss bank UBS issued a profit for the third consecutive quarter that surpassed expectations of analysts thanks to the good performance of its unit investment banking. Its net profit for the second quarter amounted to 2.01 billion Swiss francs (1.91 billion dollars) compared with a loss of 1.4 billion francs a year ago. That topped analysts' forecasts for a positive financial result of 1.12 billion francs. Earnings per unit for the management of its assets before tax jumped 21% yoy to 1.13 billion francs. Investment banking division reported a profit in turn from 1.3 billion francs compared with a loss of 1.85 billion francs a year ago. Redemptions of unit management assets decreased by 8.1 billion francs in the second quarter compared with 15.4 billion francs in the first three months of this year. This also helps to increase the profit of the financial giant. Shares of UBS were fell 2.2 percent this year. UBS and the second largest bank Credit Suisse in Switzerland have been successful stress testing of the Swiss regulatory authorities. They showed that the two banks maintain capital adequacy ratio (tier 1 capital ratio) of more than 8% even in the worst scenarios applied economic decline and tremor in the financial markets. The bank realized tracker mortgages, which increased the profits in comparison with the previous months.
The profit of Morgan Stanley easily passed the expectations
The profits of one of the biggest investment banks on Wall Street - Morgan Stanley easily topped market expectations, mainly because of good results from securities trading. New York-based bank announced a profit of 1.8 billion dollars for the first quarter, or 1.03 dollars per share. After eliminating one-off income and expenses of its positive financial result amounted to 1.4 billion dollars, or 99 cents a share, but this proved much more than market forecasts for net profit of U.S. $ 938 million, or 57 cents a share. For the same period last year Morgan Stanley issued a loss of 578 million dollars, or 57 cents a share. Most of the improvement of financial performance division contributes to trading in securities whose revenue doubled in the last 12 months and reaching 2.7 billion dollars for the quarter. Funds for real estate investment, Morgan Stanley suffered significant losses this year, mainly because of problems in real estate and subprime mortgage loans. The bank offered best tracker mortgage rate, which increased the demands for credits and clients of the financial institution.
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