The largest US bank JPMorgan
Chase had to cut back heavily on the corona pandemic in the second quarter. Nevertheless, the US industry leader made a profit that most other companies can only dream of. The bottom line, JPMorgan earned just under $ 4.7 billion (around € 4.1 billion) on Tuesday, about half as much as in the same period last year. Experts had expected significantly less, and the stock rose pre-exchange.

JPMorgan posted double-digit billions due to impending loan defaults, but has so far weathered the crisis well overall. Earnings were a positive surprise, increasing 15 percent year over year to nearly $ 34 billion. Among other things, the bank benefited from brisk business on the financial markets and in investment banking. “JPMorgan remains stable in these unprecedented times,” announced CEO Jamie Dimon.

The rival Wells Fargo fared significantly worse
who suffered the first quarterly loss since the financial crisis over ten years ago due to the corona pandemic. The bottom line is that the money house lost $ 2.4 billion (€ 2.1 billion) in the three months to the end of June. High loan loss provisions massively reduced the balance sheet after a $ 6.2 billion profit in the same period last year. Revenue collapsed by over 17 percent to $ 17.8 billion.

In contrast to the US competitors, who can compensate for weaknesses in the credit business with their investment banking and trading divisions, Wells Fargo has traditionally held back here. In addition, the money house is already heavily burdened due to conditions related to fake accounts and other dubious business practices. The numbers were not well received on the market – the stock reacted to the market with losses. Investors particularly disliked that Wells Fargo cut dividends more than expected.

Citigroup also has billion-dollar buffers against credit defaults in the Corona crisis again heavily burdened. Nevertheless, the major bank made another billion in profit in the second quarter. The surplus fell by 73 percent compared to the previous year to $ 1.3 billion (€ 1.1 billion), as Citigroup announced in New York. The financial group did better than expected by analysts. The big banks traditionally open the quarterly balance sheet of US companies. They are important indicators of how hard the pandemic hits the economy./zb/hbr/DP/eas

 ISIN  US46625H1005  US1729674242  US9497461015

AXC0245 2020-07-14/15:28

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