Profits fall in the fourth quarter for the big banks. Citigroup has its weakest quarter in 15 years.
Foto: Michael Dwyer / AP / NTBPublisert:
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A number of US banks have delivered results for the fourth quarter of 2023 before the stock market opens on Wall Street on Friday.
Citigroup rises two percent in pre-market trading after posting its worst quarterly results in 15 years.
At the same time, the bank announces cuts of 20,000 positions in the “medium term”, according to Financial Times.
Citi, which is in the middle of a major reorganization, lost $1.8 billion after taxes in the fourth quarter due to costs related to the restructuring, as well as large losses related to its business outside the United States.
Citigroup CEO Jane Fraser, here during a hearing in the Senate in December, 2023. Photo: Alex Brandon / AP / NTB
The bank’s operating income was 17.4 billion dollars in the period, while 18.7 billion dollars was expected, according to CNBC.
The weak result was expected.
Citi announced earlier this week that the bank would take currency loss of USD 880 million, including against the Argentine peso, as well as restructuring costs of USD 780 million.
Citigroup, the US’s third largest bank, had 240,000 employees as of September 2023. Only the far more profitable JP Morgan Chase has more employees.
Bank of America had a 56 percent drop in net income to $3.14 billion, the bank writes in its quarterly report.
It is twice as big a fall as what analysts were expecting beforehand.
Bank of America CEO Brian Moynihan describes the quarter and the year as “solid”.
– Our spending cuts have given us the opportunity to continue investing in growth initiatives, he writes in a press release. He predicts growth in 2024.
JP Morgan and Wells Fargo have also presented figures.
- JP Morgan: Delivered net income of $9.3 billion in the fourth quarter.
- Bank of America: Net income of $3.14 billion.
- Wells Fargo: Net income of $3.4 billion.
Photo: Michel Euler / AP / NTB
JP Morgan writes in its quarterly report that profits have fallen 15 percent to $9.31 billion, writes CNBC. Revenue, on the other hand, rose 12 percent to 39.94 billion dollars. This is higher than analysts expected.
In the quarterly report, the bank states that the profit fell due to an expenditure of 2.9 billion dollars to the authorities in connection with last year’s banking crisis.
Just after all the banks have presented their quarterly reports, they receive a cautiously negative reaction from investors on Wall Street.
The stock exchange opens at 15:30 Norwegian time, but in pre-trade it looks like this:
- JP Morgan falls 0.42 percent
- Bank of America falls 1.34 percent
- Wells Fargo lies almost flat
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