Global banking giants post losses in third quarter
Earnings at three of the world’s biggest banks- Citigroup, JPMorgan Chase and Wells Fargo, declined during the third quarter of 2016, their respective financial statements have shown.
Citigroup’s net income fell 9.5 percent to $3.8 billion, from $4.2 billion the same quarter a year ago. Revenues were also down 3.8 percent to $17.8 billion during the July-September period, from $18.5 billion the same period last year.
After the release of the results, shares of Citigroup fell 2.4 percent to $48.39 after opening Friday at $48.60 on the U.S. stock market.
At JP Morgan Chase, net income fell 7.3 percent to $6.3 billion. That’s was down from $6.8 billion.Revenues, however, rose 8.5 percent to $25.5 billion after posting $23.5 billion in the third quarter of 2015.
Shares of the bank fell 2.2 percent to $67.30 after they began the day at $68.80.Stirred with illegal banking activities, Wells Fargo’s earnings were highly anticipated.
The bank said Friday its net income fell 3.4 percent to $5.6 billion in third quarter of 2016, from $5.8 billion during the same period a year ago. Revenues were up 1.8 percent to $22.3 billion from $21.9 billion. After opening at $45.17, shares of Wells Fargo fell 1.8 percent to $44.33.
“I am deeply committed to restoring the trust of all of our stakeholders, including our customers, shareholders, and community partners,” new President and CEO Tim Sloan said in a statement. “We know that it will take time and a lot of hard work to earn back our reputation.”
The Consumer Financial Protection Bureau issued a $185 million fine for the illegal banking practices at Wells Fargo that dated to 2011, after employees opened millions of accounts and applied for half a million credit card accounts that were not authorised by consumers, in order to boost sales figures and meet sales targets.