the photomontage shows the logos of four US banks. Wells Fargo and Citibank have presented business figures today (Photo: AP).
After JP Morgan is off to a successful start to the reporting season on Thursday, is the major competitor Wells Fargo from a similar picture. Net income fell in the second quarter compared to the same period only slightly from 5.7 to 5.6 billion dollars. Revenue rose by four per cent, but remained slightly below expectations.
The pressure on the profit margin was largely offset by significant growth in loans and customer deposits. The cost of bad credit on the other hand grew slightly – this shows that the credit cycle has passed its best point
The largest investment banks in the world
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Citibank
revenue: 1,420 billion
decline: 20.3 percent
As expected played here also the ailing oil and gas industry a role with a load of nearly 300 million. But the bank says remains of a “total solid credit quality”. The Bank has lowered the cost, partly due to lower bonuses for employees. On these points, the figures similar to that of JP Morgan. At JP Morgan still was added a good result in Capital Markets. This area plays at Wells Fargo only a subordinate role, the bank headquartered in San Francisco is the business model here rather a kind of a tremendous savings.
Citigroup, however, shows clearly the headwind the industry by very low interest rates and a lot of uncertainty in all markets experiencing. Profit after tax in the second quarter was $ 4 billion significantly below the 4.8 billion the previous year, but still above analysts’ expectations
At Citigroup but also the revenue fell -. To ten percent to 17.5 billion. Here, the strong dollar also played a role. Without exchange rate shifts the decline would have only six percent located at. And these percentages were alone in the special area Citi Holding, in which the Group has pooled weak loans that are considered legacy of the past.
If you exclude the well from which revenues remained at least stable. Somewhat surprisingly, the provision for bad loans fell slightly against the industry trend overall. This trend was determined by the business with private customers, where the volume of bad loans decreased significantly, while in corporate banking, especially in the energy sector, increased.
Do These bankers most
JP Morgan had published a quarterly result of € 6.2 billion dollar on a Thursday what to a friendly exchange reaction resulted. The bank thus once again proved to more profitable compared to Wells Fargo. You will still rated traditionally low in the stock market, because its result is stronger from the capital market dependent and therefore deemed to be more susceptible to fluctuations
commented David George from research firm Baird announced on Friday to JP Morgan the Council. “At sell high rates. “In his opinion, the prospects for the industry for the coming year by the expected long-term very low interest rates are clouded.
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