The fourth largest American bank, Wells Fargo, increased its profit by almost 32 percent to five billion dollars (over CZK 105 billion) thanks to interest income.
Citigroup then increased net profit by seven percent to $4.6 billion, beating analysts’ estimates. The companies stated this in their Friday announcements.
Earnings per share for JPMorgan were $4.1. The consumer and community banking division’s revenue rose 80 percent to $5.2 billion. The bank built up $2.3 billion in reserves, up 56 percent from the same period last year.
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At Wells Fargo, earnings per share were $1.23. The volume of reserves of the bank increased by almost 54 percent to 1.21 billion dollars.
Wells Fargo is also still trying to mitigate the fallout from a scandal surrounding its sales practices that led to heavy fines and restrictions on asset availability by the U.S. Federal Reserve.
For Citigroup, earnings per share rose to $2.19 from $2.02 in the same period last year. But due to weaker economic growth, the bank set aside 241 million dollars in reserves, while last year in the same period it dissolved 138 million saved for worse times.
Investment banking revenue fell 25 percent from $774 million due to adverse market conditions.
Citigroup also earned more in interest from people who took out loans from it. The bank’s shares responded to the economic report by rising about two percent, JPMorgan shares by almost six percent, while Wells Fargo shares added almost four percent.
The banks published favorable results in the context of the collapse of the American financial institutions Silicon Valley Bank (SVB) and Signature Bank, Reuters reminds. According to her, it was the second and third largest bank failure in American history.
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