Bank of America, Citigroup, Wells Fargo, JPMorgan Chase Report Billions in Profit
October 18, 2011 in News
CEO of Citigroup Vikram Pandit speaks during the FORTUNE Breakfast & Conversation with Vikram Pandit, CEO, Citigroup at TIME Building on October 12, 2011 in New York City. Photo by Jemal Countess/TIME
Bank Of America Rakes In $6.2 Billion Profit (Forbes):
Bank of America reported net income of $6.2 billion, or 56 cents per share, for the third quarter of 2011, compared with a net loss of $7.3 billion, or 77 cents per share a year-ago period.
The nation’s largest bank reported total revenue of $28.5 billion, a 6% increase. Analysts’ consensus forecast for earnings per share of 20 cents on revenue of $25.9 billion.
BofA shares were down more than 4% in pre-market trading.
The quarter’s results were heavily affected by accounting gains and on asset sales. The three-month period ending in September included pretax gain of $4.5 billion (pretax) in positive fair value adjustments on structured liabilities, a pretax gain of $3.6 billion from the sale of shares of China Construction Bank (CCB), $1.7 billion pretax gain in trading Debit Valuation Adjustments (DVA), and a pretax loss of $2.2 billion related to private equity and strategic investments, excluding CCB.
Citigroup Earnings Rise 74% to $3.8 Billion (New York Times):
With a big push from a one-time accounting gain, Citigroup on Monday squeezed out its seventh consecutive quarterly profit, but it faces significant challenges to growth.
Citigroup announced a third-quarter profit of $3.8 billion, or $1.23 a share, beating analyst consensus estimates of 81 cents a share. That represented a 74 percent increase from a year ago, when the bank announced a quarterly profit of $2.2 billion, or 72 cents a share.
But a big portion of that increase came from gains that will be difficult to repeat. Citigroup benefited from a paper gain of $1.9 billion, reflecting a sharp increase in the perceived riskiness of its debt — an accounting adjustment that gave JPMorgan Chase a similar earnings increase last week. Citigroup also delivered another $1.4 billion to its bottom line from money it had previously set aside to cover losses on credit cards and other loans. Together, those items accounted for more than 85 percent of the company’s earnings.
Wells Fargo 3Q profit up 21 percent, revenue slips (AP):
Wells Fargo & Co.’s CEO John Stumpf says he understands the “angst and anger” being expressed by the protesters at Occupy Wall Street and its spin-off sites around the country.
“This downturn has been too long. Unemployment is too high. And people are hurting. We get that,” he said on Monday in response to a question on the demonstrations. Stumpf was speaking on a conference call to discuss third-quarter results for the nation’s fourth-largest bank by assets and its largest mortgage lender.
Wells Fargo’s net income rose to $4.06 billion, or 72 cents per share, matching the forecasts of analysts surveyed by FactSet. In the same period a year ago the bank earned $3.34 billion, or 60 cents per share.
Revenue fell 4 percent to $19.63 billion, below the $20.24 billion analysts expected. Revenue in the year-ago period was $20.39 billion.
JPMorgan Profit Falls 4%, to $4.26 Billion (New York Times):
Despite a paper gain that helped lift earnings by nearly $2 billion, JPMorgan Chase & Company reported on Thursday that profit fell 4 percent in the third quarter amid lingering mortgage troubles and weak investment banking results.
Both its consumer and Wall Street businesses were hit hard by the still-anemic recovery in the United States.
The bank made $4.26 billion, or $1.02 a share, compared with $4.4 billion, or $1.01 a share, in the period a year earlier. The results beat analysts’ consensus estimate of 96 cents a share. Shares of JPMorgan fell almost 5 percent on Thursday to $31.60.
Related posts:
- Restricted Federal Reserve Report: Systemic Risk Exception for Bank of America
- Bank of America, GE Pay Zero Federal Taxes
- Citigroup, Merrill Lynch, Credit Suisse, UBS, Deutsche Bank, Morgan Stanley Subpoenaed
- Bank of America CEO Ken Lewis to Retire by Year End
- JPMorgan, Lehman, UBS Named in Bid-Rigging Conspiracy
- Goldman Sachs earnings far exceed expectations
- NY sues Bank of America alleging fraud in Merrill deal
- Confidential People’s Bank of China Report on Billions in Theft by Government Officials
And they wonder why Americans are finally banding together and speaking out…class warfare is about to begin