big american bank (JP Morgan, Citigroup, Bank of America and Wells Fargo) job results season begins There are different figures in the country, but there is a common trend: all of them were more or less affected by the bailouts of regional financial institutions such as Silicon Valley Bank, Signature Bank or First Republic in the last quarter of 2019. year. Despite this, the increase in interest rates to the range of 5.25 percent to 5.50 percent increased the coffers of some people compared to the same period last year. JP Morgan, the nation’s largest bank, posted record annual profits of nearly $50 billion; More than $4 billion of that came from the bargain purchase of First Republic. Along the same lines, Wells Fargo recorded attributable net profit of $17,982 million (€16,413 million) in 2023; This represents an improvement of 43.1% compared to the result recorded by the organization in 2022. two companies. While Citigroup laid off 10 percent of its staff, suffering a loss of $ 1 billion 839 million in the last quarter of 2023 due to the increase in expenses, credit costs and decrease in income, Bank of America reduced its net profit by 3.68 percent. It rose 26.515% to $1 million.
Investors on Wall Street gave mixed reception To the first trading results of the year. According to the figures presented, although JP Morgan and Wells Fargo were the ones that rose in the middle of the session, they were the ones that remained in the red at the end of the night. JP Morgan decreased by 0.43%, Wells Fargo lost 3.10% and Bank of America It fell 1.02%. For your part, citigroup Earn 1.06%. Other major banks are also falling on the stock market: Morgan Stanley lost 0.57% and Goldman SachsIt is 0.39%. The country’s main stock indexes are almost neutral. HE Dow Jones lost 0.34% and Nasdaq 0.04%, S&P 500 gives 0.04%.
It was the bank that benefited the most from the international economic environment and interest rate increases JP Morgan. They Net income reached 158.104 million dollar (144.262 million euros), 22.9% above figure The recorded business volume and provisions for non-payment of the loan portfolio in 2022 were 9,320 million dollars (8,504 million euros), i.e. 45.9% higher. The first sign of anxiety appears last quarter of the yearwhen is the bank there is use $9,307 million (8,492 million euros), 15.5% less than a year agoNet turnover increased by 11.7% to 38,574 million dollars (35,197 million euros). Jaimie Dimon, the organization’s president and CEO, said: “2023 was a good example of our investment philosophy and strength, as well as the value of being there for our clients as we always are in good times and bad times,” and that the bank has a total of $514 billion (469 billion) in cash and investments. It was stated that it has the capacity to absorb losses of 1.4 trillion dollars (1.277 trillion euros). On the other hand, Dimon assured that the latest regulatory and legislative proposals, including the Basel III criteria, “could cause serious harm to consumers, companies and markets” and asked regulators to make “necessary adjustments”. A sound financial system.”
Wells Fargo also improved its results further. The bank recorded attributable net profit of $17,982 million (16,413 million euros) in 2023. 43.1% improvement Compared to the result recorded by the organization in 2022, its revenue increased by 11.1% to $ 82,597 million (75,390 million euros). The firm recorded a negative impact of $5,399 million (€4,928 million) related to credit risk; This is 252% more than the amount allocated for provisions in 2022. Just like what happened to JP Morgan, Between October and December profits reduced their growth and Increased by 9.8% to $3.16 billion (2.884 million euros). Turnover increased by 2.2% compared to the same quarter of the previous year, reaching 20 billion 478 million dollars (18 billion 691 million euros). “While the improvement in our 2023 results benefited from the strength of the economic situation and the rise in interest rates, our interest in efficiency and sound credit discipline also contributed significantly,” commented Wells Fargo representative Charlie Scharf.
First negative results
Bank of AmericaThe second largest bank in the USA broke a record Achieved a net profit of 24 billion 866 million dollars By the end of 2023 (22,665 million Euros), this 4.4% decrease compared to the result recorded in the previous yearand it is assumed in efourth quarter an extraordinary negative impact $3.7 billion (3.372 million euros). In 2023 as a whole, Bank of America’s total net income amounted to $98,581 million (€89,854 million); This is up 3.8% from 2022, thanks to an 8.5% increase in net interest income to $56,931 million (51,891 million). Euro). However, over the past year, the organization’s provisions to cover credit default risk increased by 73% to $4,394 million (4,005 million euros). These figures are due in particular to the drag of the last quarter of the year, when the financial institution earned $ 2,838 million (2,587 million euros), which is 58.9% less, while net income was $ 21,959 million (20,015 million euros), which is 10.5% less. Based on the fourth quarter of 2022.
The company stated that its accounts reflect a situation. $2.1 billion negative impact Regarding non-financial expenses for the estimated amount (€1,914 million) New rules from the Federal Deposit Insurance Corporation (FDIC). Highlighting good progress in credit demand, Bank of America Chairman and CEO Brian Moynihan said, “We delivered strong results in the fourth quarter and full year as all of our businesses achieved strong organic growth driven by record customer activity and digital engagement.” growth of deposits.
The biggest financial blow was taken citigroup. Bank registered 9 billion 228 million dollars of damage (8.411 million euros), 38% below the organization’s previous year’s resultWhile its revenues reached 8 billion 462 million dollars (71 billion 516 million euros), it was 4.1% below the previous year’s turnover. In the fourth quarter, it decreased by 3% to $17.44 billion (15,896 million euros). Throughout the year, Citigroup’s credit cost increased by 75 percent to 8 billion 186 million dollars (8 billion 373 million euros), and in the last quarter of the year, it increased by 92 percent to 3 billion 547 million dollars (3 billion 233 million euros). Euro). Between October and December 2023, the bank recorded a loss of $1,839 million (€1,676 million) due to a series of extraordinary charges, including $1,700 million (€1,550 million) in a special assessment by the Federal Deposit Insurance Corporation (FDIC). As the bank had already predicted, following the rescue of many institutions in last spring’s banking crisis.
In addition, Citigroup also noted a $1.3 billion negative impact Due to transfer risks in Russia and Argentina (1.185 million euros) and 880 million dollars (802 million euros) due to the devaluation of the Argentine peso. The US entity also announced that it had allocated a total of $780 million (711 million euros) to restructuring expenses in the fourth quarter of 2023, largely resulting from compensation, impairment of non-monetary assets and other related elements. Implementation of initiatives aimed at simplifying the organizational and administrative structure of the bank. Citigroup announced in September that it would restructure around five core business areas in an effort to “simplify” decision-making and implement anticipated workforce cuts. He announced this today Layoffs will total 20,000 workers in the medium term He is one of 200,000 employees worldwide. “While the fourth quarter was very disappointing driven by notable factors, we have made significant progress in simplifying Citi and executing our strategy,” said Citigroup CEO Jane Fraser, who expects 2024 to be a turning point.
great results banking will continue on TuesdaySince Monday is a holiday in the United States, With figures from Goldman Sachs and Morgan Stanley More dependent on the investment market than the average consumer, this likely reflects Wall Street’s good performance last year.
Source: Informacion
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