JPMorgan Chase, Citigroup profits up as lending rises
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NEW YORK, Oct 12 — JPMorgan Chase and Citigroup reported slightly higher profits today due to increased lending and higher interest rates, opening third-quarter reporting season on a solid note.
But revenues in some key markets divisions were again weak due to limited volatility and a shift among customers to automated trading platforms. The banks also said a string of US hurricanes and natural disasters weighed on activity.
“JPMorgan Chase delivered solid results in a competitive environment this quarter with steady core growth across the platform,” said chief executive Jamie Dimon.
“The global economy continues to do well and the US consumer remains healthy with solid wage growth.”
JPMorgan, the biggest US bank by assets, reported US$6.7 billion (RM28.2 billion) in profits for the quarter ending September 30, up seven per cent from the year-ago period. Revenues were US$25.3 billion, up three per cent.
The numbers were similar at Citigroup, which also scored a seven per cent rise in profits to US$4.1 billion. Revenues edged up two per cent to US$18.2 billion.
Both banks cited the gains from higher interest rates following Federal Reserve rate hikes, which permit financial companies to charge more for loans.
Overall loans also rose from the year-ago levels, a sign the broader economy is performing solidly.
But both banks continued to struggle with weak trading results in the closely-watched fixed income markets division. JPMorgan reported a 27 per cent drop in this category, while Citigroup had a 16 per cent decline.
Both banks also cited impact from a string of US hurricanes. Citigroup added US$100 million in reserves due to expected loan losses from hurricanes and a large earthquake in Mexico.
JPMorgan shares rose 0.5 per cent in pre-market trading to US$97.35, while Citigroup shares advanced 0.3 per cent to US$75.19. — AFP