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For U.S. banks profits shrink

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Blick aus dem Bank-of-America-Gebäude auf Manhattan. Quelle: Reuters

View from the Bank of America building in Manhattan. Source: Reuters

HB NEW YORK. The round of quarterly results of major U.S. banks went further on Friday. Bank of America (BoA ) has further to fall in the second quarter thanks to lowered borrowing costs again one billion profit. The net profit dropped to $ 3,120,000,000 – $ 3,200,000,000 from a year earlier , as the largest U.S. bank announced on Friday for assets .

Per share pointed to the money home , an increase of 27 cents , exceeding the average analyst expectations of 22 cents per share. The revenues net of interest expense declined by eleven percent to 29.4 billion dollars. The credit of the bank declined the fourth quarter in a row. The money house set back 8.1 billion U.S. dollars for loan losses , less than in the first quarter and the year before.

The BoA shares reacted to the figures pre-market first with a rate increase, but then turned into negative and recorded 4.4 percent lower. Market players could not convince the bank revealed. " It seems to me that they have sold a lot of facilities to achieve these numbers, " said Matt McCormick, portfolio manager Bahl & Gaynor of .

The Bank is currently separated from areas that do not belong to the core business. Last year the Institute had to bear even greater burdens on the state aid received . The money the house makes the meantime progress on the sale of assets, said chief executive Brian Moynihan. His institute has strengthened the capital base through retained earnings .

Bank of America is one of the losing of the financial crisis. She had verhoben with the spectacular billion takeover of investment bank Merrill Lynch in early 2009 and had to be supported by the state with billions. The state aid returned by the U.S. bank but is now .

Citigroup has also booked in the second quarter of a billion-dollar profit , but definitely less than last year. Bottom line , the institute earned $ 2,700,000,000 $ 4,300,000,000 for the same period last year , as the bank announced on Friday in New York.

Lower revenues, especially in investment banking, depressed profits. Also for sale are the business areas contributed significantly less than in the first quarter. Total revenues went back to 22.1 billion U.S. dollars , up from 33.1 billion euros last year. Lower expenses for bad loans could not make up for that. Citigroup ‘s shares were in pre-market trading down significantly.

Citigroup CEO Vikram Pandit was nevertheless confident. Although the economic environment remains challenging and involve the international rules for financial markets, uncertainty, he believes that Citigroup could be sustainable in future profitability. The U.S. government had supported the bank during the financial crisis with a total of 45 billion dollars and taken a share of 27 percent. Meanwhile , the state sold the shares but by and by

.

Citigroup is one of the big losers of the financial crisis and was ordered last year from scratch. In the traditional banking business of Citicorp was bundled. The problematic lines are merged in the Citi Holdings and will be sold. Last was the U.S. bank customers for the private equity business. The auto finance business at the end of June to the Spanish Banco Santander sold.

On Thursday, rival JP Morgan Chase had the quarterly season of U.S. banks opened. JP Morgan increased its profit in the quarter by about 75 percent to 4.8 billion dollars. It laid the management significantly less money back for credit losses. Bank CEO Jamie Dimon warned against coated optimism: It is too early to say how much the situation will improve in the lending business. The returns in the segment were more " unacceptable ".

In investment banking – the number one profit driver at the start – it was in recent months because of weak markets are not as round. The gain in the region fell by six percent to $ 1,400,000,000 . Even among European banks that submit their figures in the coming weeks , analysts expect little tail wind through the capital markets business . The first event on this coming Thursday , the Swiss Credit Suisse.