The Corona-pandemic and its economic impact show a deep mark in the figures for the major American banks. JPMorgan, the largest Bank in the United States, suffered in the second quarter, a hefty drop in profits. After they had earned in the previous year, between April and June, nearly ten billion dollars, was in this year, with 4.7 billion dollars (4.1 billion euros) not even the half of it the bottom line is that, as the Bank announced on Tuesday.
editor in the economy.F. A. Z.
In the case of the Citigroup net income for the quarter fell by even 73 per cent to 1.3 billion dollars. The San Francisco-based Bank Wells Fargo had to contend with a loss of 2.4 billion dollars, even the first quarterly loss since the financial crisis of 2008.
high provisions for possible loan losses, but also lower revenues due to the lowered key interest rates in America verhagelten the banks of the results. The background through the Corona-the crisis is rapidly rising unemployment and the increasing number of corporate insolvencies. To all 8.9 billion to $ 10.5 billion alone, JPMorgan has increased its provisions for bad loans. Citigroup to lay back with $ 7.9 billion four times as much money for credit risks, as in the prior-year period.
Deutsche Bank with price plus
"Despite some positive economic data and decisive action of the government, there continues to be great uncertainty about the economic Outlook," warned of for years, spoiled by success, Chairman and CEO of JPMorgan, Jamie Dimon.
Both Dimons Bank and Citigroup were able to cushion the problems in lending business, however, with bubbling of revenue Share of investment banking. According to Dimon, JP Morgan has made in the past three months so much revenue like never before. In the business with fixed-income securities, the Bank doubled its revenue compared to the same period last year. But also in shares trading, you posted high growth rates.
it runs in the bond market appears to be around, is good news for Deutsche Bank, which is in the area of international fixed income securities and currencies, traditionally one of the most important players. The Chairman of the Board Christian Sewing had suggested a few days ago, that in his house the trading business remain lively. The shares of Deutsche Bank were on Tuesday because even with a price increase of up to 1.8 percent, the biggest winners in the otherwise weak Dax. Sewing presents the Figures for the second quarter of the year on 29. July.Updated Date: 14 July 2020, 14:19