Global banking giants Citigroup, JP Morgan Chase and Wells Fargo post losses
Posted by News Express | 15 October 2016 | 1,945 times
Earnings at three of the world’s biggest banks declined during the third quarter, those companies said Friday.
Citigroup’s net income fell 9.5 percent to $3.8 billion, from $4.2 billion the same quarter a year ago. Revenues were also down 3.8 percent to $17.8 billion during the July-September period, from $18.5 billion the same period last year.
After the release of the results, shares of Citigroup fell 2.4 percent to $48.39 after opening Friday at $48.60 on the U.S. stock market.
At JP Morgan Chase, net income fell 7.3 percent to $6.3 billion. That’s was down from $6.8 billion.
Revenues, however, rose 8.5 percent to $25.5 billion after posting $23.5 billion in the third quarter of 2015.
Shares of the bank fell 2.2 percent to $67.30 after they began the day at $68.80.
Stirred with illegal banking activities, Wells Fargo’s earnings were highly anticipated.
The bank said Friday its net income fell 3.4 percent to $5.6 billion in third quarter of 2016, from $5.8 billion during the same period a year ago.Revenues were up 1.8 percent to $22.3 billion from $21.9 billion. After opening at $45.17, shares of Wells Fargo fell 1.8 percent to $44.33.
“I am deeply committed to restoring the trust of all of our stakeholders, including our customers, shareholders, and community partners,” new President and CEO Tim Sloan said in a statement. “We know that it will take time and a lot of hard work to earn back our reputation.”
The Consumer Financial Protection Bureau issued a $185 million fine for the illegal banking practices at Wells Fargo that dated to 2011, after employees opened millions of accounts and applied for half a million credit card accounts that were not authorised by consumers, in order to boost sales figures and meet sales targets.
Wells Fargo fired 5,300 of its employees involved in the scandal. Then-CEO John Stumpf agreed last month to forfeit his equity awards valued at $41 million and retired Wednesday from the company. (Anadolu Agency)