US banks report gains, shares sink

CNC
Added On April 15, 2018

Profits at JP Morgan Chase, Citigroup and Wells Fargo rose in the first three months of the year. But despite the gains, their shares slumped on Friday.
 
JP Morgan Chase's profits soared 35 percent year-on-year, with more modest increases reported at Citigroup and Wells Fargo.
 
Analysts said the share decline was a sign investors had already factored in some of the rise.
 
They were expecting more active stock markets and a lower tax rate to boost results.
 
Shares in all three banks sank more than 2 percent in early trading, providing a sour start to earnings season, when companies report quarterly performance to investors.
 
JP Morgan Chase reported profits of 8.7 billion U.S. dollars in the period from 6.4 billion dollars last year. This was despite a decline in investment banking.
 
Citigroup's profits rose 13 percent, reaching 4.6 billion dollars in the quarter.
 
The firm said volatility boosted its equity trading unit, helping to offset a fall in bond trading. As with JP Morgan Chase, investment banking took a hit.
 
Wells Fargo reported preliminary profits of 5.9 billion dollars in the quarter, rising 5 percent from the same period last year.
 
The results were overshadowed by the firm's ongoing problems with watchdogs.
 
Wells said U.S. regulators have proposed to resolve investigations of vehicle insurance and might force it to restate its results.
 
In February, the U.S. Federal Reserve said it would restrict the firm's growth until it improved its risk management oversight.