Loan Loss Provision

US Bank Profits Slip 1.2% in Q3

Reuters | |

U.S. bank profits fell 1.2% in the third quarter of 2021 to $69.5 billion as firms were slower to shrink their credit loss provisions and grappled with low interest rates, the Federal Deposit Insurance Corporation reported Tuesday.

Bank profits are still up nearly 36% from the same time a year ago when banks were still rushing to set aside funds to guard against pandemic-driven loan losses.

HSBC Beats Quarterly Estimates With $5.8 Billion Pretax Profit

Reuters | |

HSBC Holdings PLC beat quarterly profit forecasts and released $400 million it had set aside to cover bad loans caused by the pandemic, as rapid vaccine rollouts in the United States and Britain raise hopes for an economic recovery.

Europe's biggest bank by assets cautioned, however, that high levels of uncertainty meant it was keeping the bulk of the $3 billion it set aside a year ago to cover potential bad debts.

American Express Beats Estimates; Releases More Than $1 Billion of Loan Loss Reserves

Reuters | |

American Express Co exceeded quarterly profit estimates on Friday as it released more than $1 billion worth of funds it had set aside to cover potential coronavirus loan losses.

The outlook for card companies is improving as government stimulus and vaccine rollouts fuel an economic recovery, helping the industry recover from a pandemic-driven slump in non-essential consumer spending last year.

Bank of America Misses on Quarterly Revenue, Down 10% Year-Over-Year

Kimberly Redmond | |

Bank of America posted lower-than-expected fourth quarter revenue and earnings that barely met expectations despite a nearly $1 billion bottom-line boost from releasing some of the cash it had set aside for loan losses. () 

In its report released Tuesday, the second-largest bank in the U.S. said revenue for the final three months of 2020 came in at $20.1 billion, 10% below the end the same period in 2019 and short of the $20.6 billion forecast by Wall Street analysts.

JPMorgan Chase Beats Estimates on Record Trading Revenue, Credit Reserve Releases

Kimberly Redmond | |

JPMorgan Chase & Co. posted better-than-expected fourth quarter earnings Friday, as it released some of its reserves earmarked to cover potential loan defaults by struggling businesses and households.

The New York bank’s net income rose 42% to $12.1 billion, or $3.79 per share, in the quarter ending Dec. 31. Its revenue increased 3% to $30.2 billion. During the fourth quarter, JP Morgan released $2.9 billion from its credit reserves, which added .72 cents to its earn...

Citigroup Beats Estimates With Strong Fourth Quarter; Releases Some Reserves for Loan Losses

Kimberly Redmond | |

Citigroup has begun drawing down some of the reserves set aside to cover defaulted loans, a move that helped the bank post a better-than-expect profit margin in 2020.

It its fourth-quarter earnings report released Friday, the New York bank reported it earned a profit of $4.63 billion, or $2.08 per share, down from $4.97 billion, or $2.15 per share, in the same period a year prior. For all of 2020, profit fell 41% to $11.37 billion.

Revenue declined 10% during the final three months to $16.5 billion, but for the year revenue remained flat at $74.3 billion.

HSBC Reports 35% Fall in Quarterly Earnings, Announces Business Restructuring

Reuters | |

HSBC Holdings PLC on Tuesday signaled it would embark on a pandemic-induced overhaul of its business model, seeking to flip its main source of income from interest rate to fee-based businesses.

Reporting a 35% tumble in quarterly profit, Europe’s largest bank also accelerated plans to shrink in size, targeted deeper cost cuts, and said it will resume conservative dividend payments when able.

The planned business model changes mark one of the biggest shifts in strategy to date from HSBC, which has long touted its ability to generate interest income from its more than $1.5 trillion in customer deposits.

Wells Fargo Misses on Third Quarter As Costs Mount; Still Absorbing Sales Practices Scandal

Reuters | |

Wells Fargo & Co fell short of Wall Street estimates for third-quarter profit on Wednesday as the bank clocked nearly $1 billion in expenses tied to a years-long sales scandal, while near-zero interest rates hurt its bottom line.

Chief Executive Officer Charlie Scharf, who marks one year at Wells Fargo this month, has made cost cuts a cornerstone of his plan to turn the scandal-plagued bank around.

Over the l...

Goldman Sachs Posts 94% Increase in Q3 Profit, Well Ahead of Estimates

Reuters | |

Goldman Sachs Group Inc reported a 94% rise in quarterly profit on Wednesday that swept past estimates, driven by strength in its bond trading business and lower provisions for credit losses.

With a 29% jump in trading revenue, Goldman easily outperformed rivals JPMorgan Chase & Co and Citigroup Inc as financial market volumes broke records in a recovery from a coronavirus-led selloff.

Bond trading revenue surged 49% to $2.5 billion, while equities trading ...

Citigroup Posts Better-Than-Expected Results for Third Quarter

Reuters | |

Citigroup Inc trounced estimates for third-quarter profit on Tuesday, as this year's rollercoaster ride for global financial markets drove a surge in the bank's trading revenue, countering the impact of ultra-low interest rates.

Adding to the bullish message from bumper results from peer JPMorgan, the bank reported respectively 18% and 15% jumps in revenue from bond and stock market trading and its shares rose around 2% afte...

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