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US banks' quarterly balance sheets disappoint investors - JPMorgan still has a positive forecast
According to a report from www.finanzen.net, the quarterly financial statements of major US banks have not been well received by investors. The business results meant that the prices of European banks also tended to fall. JPMorgan shares fell 0.73 percent to $169.05, despite the company giving solid guidance for net interest income for the current year. In contrast, Bank of America ultimately lost 1.07 percent to $32.80, although higher interest rates and lower taxes resulted in less profit. JPMorgan posted its highest profit in its history in 2023 thanks to higher interest rates. Net interest income also reached a record high. For 2024, the bank expects...
US banks' quarterly balance sheets disappoint investors - JPMorgan still has a positive forecast
According to a report by www.finanzen.net,
The quarterly balance sheets of major US banks have not been well received by investors. The business results meant that the prices of European banks also tended to fall. JPMorgan shares fell 0.73 percent to $169.05, despite the company giving solid guidance for net interest income for the current year. In contrast, Bank of America ultimately lost 1.07 percent to $32.80, although higher interest rates and lower taxes resulted in less profit.
JPMorgan posted its highest profit in its history in 2023 thanks to higher interest rates. Net interest income also reached a record high. For 2024, the bank expects net interest income to rise further to around $90 billion. Nevertheless, the company suffered a decline in profits in the fourth quarter due to higher risk provisions for impending loan defaults and increased costs.
Bank of America earned less despite higher interest rates and lower taxes, with profit falling by more than half in the fourth quarter. Revenue also fell year-on-year and the bank had to make additional injections into the US deposit insurance fund.
Initial strength was evident at Citigroup, while Bank of New York Mellon shares rose 4.0 percent. However, Bank of America and Wells FargoCo stood out with price drops of up to 3.3 percent. The S&P 500 Financials industry index was unable to maintain its early gains and closed 0.2 percent lower.
Analyst Timo Dums from DZ Bank judged that JPMorgan “once again underpinned its reputation as an industry leader with an extraordinary financial year and a positive outlook.” Despite a weak fourth quarter and expectations not being fully met, the positive outlook for the company is seen as reassuring.
Overall, US banks' figures reflect the impact of higher interest rates, which had a positive impact on profits. However, concerns about increased risk provisions and costs are also evident. Investors' reaction to the quarterly financial statements could have an impact on the entire financial market by influencing confidence in the stability and profitability of banks.
Read the source article at www.finanzen.net