13. CLIMATE ACTION

JPMorgan Chase and Citigroup end good years with weaker quarters. – The bharat express news

JPMorgan Chase and Citigroup end good years with weaker quarters.  The bharat express news

JPMorgan Chase closed a bumper year that generated record profit of $48.3 billion in 2021, while posting lower quarterly profits despite the performance of investment bankers who raised funds for companies and closed deals with businesses.

The bank, the nation’s largest by assets, reported flat revenue from the last quarter of 2020, although profits fell 14% to $10.4 billion in the three months to in December. Even so, its earnings of $3.33 per share beat analysts’ expectations.

Much of the decline was due to the bank raising salaries and spending more on technology, the company said in its income statement.

“The economy continues to do well despite headwinds from the Omicron variant, inflation and supply chain bottlenecks,” JPMorgan chief executive Jamie Dimon said in a statement. “We remain bullish on U.S. economic growth as the business climate is upbeat and consumers are benefiting from job and wage growth.”

The firm’s investment bankers ended a record year with a 37% increase in fees, while banking unit revenue jumped 28% to $5.3 billion. Its asset and wealth management division also benefited from higher management fees and growth in deposits and loans.

But there were also laggards: Earnings from the bank’s consumer division, which caters to Main Street customers, fell 2% to $4.2 billion. Trading revenue fell 11% from a record fourth quarter a year ago to $5.3 billion, but was still up from the same period in 2019.

Like JPMorgan, Citigroup reported lower fourth-quarter earnings. Despite this, its annual profit nearly doubled to $21.9 billion.

Net profit fell 26% to $3.2 billion in the quarter, but still beat analysts’ forecasts. In an effort to streamline its operations, the company sells some units overseas. On Thursday, it announced a $3.6 billion sale of consumer businesses in Indonesia, Malaysia, Thailand and Vietnam to UOB Group. It is also withdrawing from the Mexican retail market.

Wells Fargo bucked the trend: its fourth-quarter net profit rose 86% to $5.8 billion, beating analysts’ expectations. And annual profit rose to $21.5 billion in 2021, more than six times that of 2020, when the company hoarded funds for rainy days in the event of an increase in defaults that did not occur. not materialized.

“Everyone seems increasingly confident that the recovery is continuing,” Michael P. Santomassimo, the company’s chief financial officer, said on a conference call. Given consumer spending and business activity, “we’re optimistic,” he said.

Bank stocks rose 12% in the past month as investors predicted the Federal Reserve would raise interest rates this year to keep inflation under control. Rising rates would pave the way for banks to increase their profits, as they can charge customers more interest.

Leaders of the country’s biggest lenders have been bullish on the economy in recent months, especially during pandemic downturns. They remained bullish on Friday, but acknowledged the potential for disruption from rising inflation and the Omicron variant of the coronavirus, which has caused staff shortages in schools and businesses.

Inflation hit its highest level in four decades late last year. Rising prices have shaken consumer confidence and made businesses more uncertain about the future of the pandemic-hit economy.

Three other major US lenders – Bank of America, Goldman Sachs and Morgan Stanley – will report earnings next week.

JPMorgan Chase and Citigroup end good years with weaker quarters. appeared first on The New York Times.

Source: thebharatexpressnews.com

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