Citi earnings: Billions in profits (JULY 2009)


America’s banks is shiny again – at least superficially: The four major American banks have billions in the second quarter profits. On Friday went to Citigroup and Bank of America after. A few days ago already had Goldman Sachs and JP Morgan with high profits surprise.

The biggest losers of the financial crisis, Citigroup is counting after six quarters surprising loss in the profit zone returned. The large U.S. bank has a profit of 4.3 billion U.S. dollars in the second quarter reached (three billion euros). Analysts had expected a significant loss.

One reason for the positive development is the sale of Smith Barney Asset Management in a joint venture with Morgan Stanley, as the money house on Friday in New York announced. In the first quarter was once the largest U.S. bank posted a loss of 966 million U.S. dollars expelled. Citigroup, the U.S. government with Notkrediten of 45 billion U.S. dollars, as well as guarantees about 300 billion U.S. dollars by the crisis. Last year, the bank nor a minus of 2.5 billion U.S. dollars retracted.

Citigroup Compensation

Bank of America with 2.4 billion profit
Earlier, the Bank of America on Friday its quarterly results announced: Also they had a billion in profit in the second quarter. The bottom line also earned the Institute of revenue from lucrative share sales around 2.4 billion U.S. dollars. CEO Kenneth Lewis on Friday but warned strongly against continued high credit risks.

Before a high dividend deduction for state loans, the profit even at 3.2 billion U.S. dollars. Due to the special was the surplus of the Group with its headquarters in Charlotte in the U.S. state of North Carolina, but ultimately in the previous year by around one quarter. In the current week have had the investment bank Goldman Sachs and the large bank JP Morgan Chase billion with profits surprised that far exceed the expectations were.

The Bank of America charge more high credit risks as a result of the financial crisis and the rapidly rising U.S. unemployment. She had her pension credit for anticipated losses by a further 4.7 billion U.S. dollars increase. Additional 3.6 billion U.S. dollars fell again in writedowns on bad papers. The charges would the bank until next year to make it, said Lewis. The group met with the figures about the estimates of analysts. However, they were only conditionally comparable. Aufgebessert quarterly figures were the two share sales. They brought together income of around 9.1 billion U.S. dollars before taxes.

Even the Bank of America was selected by the U.S. government with 45 billion U.S. dollars having been. They paid the assistance has not yet returned – in contrast to other large U.S. banks. The state of stress test for the stability of banks also had the financial giant’s largest equity gap in the industry certified almost 34 billion U.S. dollars. The hole was, but now with new shares and shares virtually stopped. The bank had last year with the takeover of investment bank Merrill Lynch over the financial crisis was in trouble.

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