Posts Tagged Reported profits

Only less than 3 months, several leading banks in the U.S. are living longer flickering with the support of the Government.

However, recently, the U.S. banking industry has come to signal a positive recovery.

On 16 / 4, the bank’s second largest U.S. as JPMorgan Chase reported profitsexceeding expected in quarter 1. Previously, the two banks Goldman Sachs and Wells Fargo also nuc to investors to the good benefit plan. Loss rate USD 966 million that common shareholders of Citigroup Ganh suffered by 1 in your report that this corporation announced today 17 / 4 is not currency as previously predicted by the market.

The reported profit was lambency promote the recovery of further stock market, and world - first rehab start since 5 weeks ago, when two banks suffered serious impact in times khủng This hoảng Citigroup and Bank of America predicts the period of crisis bad worst has ended.

It can be said that the profit wave of fresh new bank in the U.S. is the result from the efforts of the Government in this country to the financial sector back from “death cõi. The interest rate very low now prompted a number of large customers to find the loan the new flags. Scope of investment banking activities and transactions flourishes again many thanks to the U.S. to launch only with credit markets. Before the test results financial capacity of 19 U.S. banks were announced, some banks, including Goldman Sachs, have tried to pay money to aid the Government.

However, there are only traces am lonely on a dark color picture. Millions of customers loan bank in the U.S. continue to fall in failure. These loss in lending new business start process clamber. Crisis on the housing market began to spread market commercial real estate, with the bankrupt corporation’s business and retail space General Growth Properties, marked the largest bankruptcy in history of U.S. real estate .

“Housing markets have overcome the period of bad worst. But for the market of real estate and commercial lending business, the situation is still sound, “the analysis of the banking sector under Gerard Cassidy from the RBC Capital Markets commented.

Profit JPMorgan Chase’s 1 in the last quarter was 2.1 billion USD, exceeding the forecast of the previous observations. Sales of banks in this quarter increased 45% to 25 billion level, from 16.9 billion the same period last year. Besides the loss rate can be as modest 966 million, revenue quarter 1 / 2009 by Citigroup has doubled over the same period to 24.79 billion USD.

However, business results by JPMorgan still reflect the situation continues to stabilize in the array as service credit, which occurs in loss. This shows that the negative impacts of degradation for economic activities by consumers and the credit market.

Many banks are in the process of preparing for the unfavorable situation can occur by increasing for bad debts. Banks and regional banking community - the subject of capital under special risks before many states fail to business loans and real estate - are bringing tens of million of cash resources to reserve. While the large banks such as JPMorgan, the additional billions of USD.

“The situation not available to the extent as what people say. Once the price is not to settle back and unemployment have not reached the top, we will continue to bear the pressure loss, “Director of Finance Michael J. Cavanagh of JPMorgan said. However, if interest rates continue to be maintained low and the U.S. Government continues to support policies for the financial sector bank, the water table will hopefully earn enough profits to prevent cú Item from the shock loss is predicted above.

Some experts said that the worry about the nationalize banks was subdued, but ask questions is whether the profit account published recently or are not sustainable in the economic degradation My place is worse. “Banks can a student. Next issue is sustainability to the benefit on account “, the analysis of financial services under Charles Peabody consulting firms Partner Portales comment.

The caution is not without reason. With the adjustment in accounting rules recently in the U.S., the profits of banks in this country may have been partially inflated blowing. Besides, there are banks suspend operations by the execution policies of the U.S. government applied in many areas in recent years will end when a bank account to the loss from capital of bad debts is not small.

In addition, recently, banks have benefited from good results in unusual activities and transactions the interest rate low to help the value of investing in market lending their flags are raised.

Test results of financial capacity of 19 largest banks in the U.S. expected to be announced on 4 / 5 may help the investors in the stock market the U.S. found some banks have ability in the level sufficient to offset the loss account occurs when the economy this place is worse.

Conclusions of investors when test results are given may not the best with what they identified the business results you 1 of the bank were announced, because the test capability financing to bring a vision of the health of banks in the next 2 years. Also in nature, reported quarterly profits look back is what took place.

The authorities have engaged in activities to check the capacity of finance for U.S. banks or, very likely a bank will need to mobilize new capital. However, the officials also emphasized that the bank so will not necessarily need to cash aid from the government. In addition to finding sources of capital investment the private banks also have access to a large capital through conversion of preference shares that the government holding the common stock as of the current Citigroup.

The officials concerned said they want the banks need to raise capital immediately announced plans to do this after the test results to the financial published. However, even stars, before the test results above are made, the price of shares of U.S. banks in the transaction are recent witnessed a strong recovery.

First week, Goldman Sachs that, they will mobilize U.S. $ 5 billion fund to return money to aid the U.S. Government. Mid-week, Chairman cum Managing Director (CEO) Jamie Dimon of JPMorgan Chase declared corporations will pay 25 billion fund that the Government has to pump as soon as permission of the authorities. New York Times