US recovery of the economy brings US banks profit jumps
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The recovery of the US economy from the Corona crisis drives large US banks to profit jumps.
, among other things, the Bank of America and Wells Fargo benefited from the dissolution of provisions in the Pandemic Year 2020 for potential loan losses in the third quarter. Because with the tightening of the economy fall for the foreseeable but not so many loans as in the meantime feared.
Morgan Stanley and Citigroup money houses also significantly increased their profits. Already the day before, the largest US bank JPMorgan reported a winning jump.
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The Bank of America released in the summer provisions for credit losses of $ 624 million (539 million euros), as reported in Charlotte. One year earlier she had placed 1.4 billion dollars in risk provisioning. Because now the revenue bounced more strongly, the surplus now jumped by 58 percent to 7.7 billion dollars.
The income - so the total revenue of the bank - increased by 12 percent to $ 22.8 billion. Last but not least, this was invested by investment banking: The fee revenues increased by 23 percent to $ 2.2 billion and thus reached almost a record level.
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Also Morgan Stanley benefited from investment banking and asset management in the months of July to September. The profit rose by a good 36 percent year-on-year to $ 3.7 billion. The yields increased by a quarter to a good 14.7 billion dollars. Finally, the financial group played the boom in stock exchanges, mergers and acquisitions in the cards to earn banks well by fees. In investment banking alone, revenue shot by a good two-thirds to $ 2.85 billion.
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Citigroup increased its profit by nearly half to $ 4.6 billion. Although total yields remained virtually at the previous year's level with $ 17.2 billion, as Citigroup announced in New York. However, revenues in trading business with fixed income securities and shares increased. The Citigroup was also able to resolve provisions for threatening loan losses, which drove the profit upwards.
At the competitor Wells Fargo, the dissolution of risk provisioning was even the main reason for the winning jump. The bank's returns declined by 2.5 percent year-on-year to $ 18.8 billion. However, the institute released provisions for endangered loans amounting to 1.4 billion dollars. One year before, Wells Fargo had returned nearly $ 770 million for loan losses. Now the profit of the Institute jumped by 59 percent year-on-year to $ 5.1 billion.
Meanwhile, Wells Fargos Scandal struck for fingered account openings a negative negative to beech - this time with $ 250 million. The cash house had admittedly admitted that employees had opened up banking and credit card accounts for years, which were not authorized by customers. The affair has already cost the bank more than $ 5 billion.
Already on Wednesday, the largest US bank Jpmorgan Chase reported a winning jump by almost a quarter to $ 11.7 billion.
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