(AOF) – The results season began in the United States with the publication of the performances of several banks, including Bank of America, JPMorgan and Citigroup. Over the last three months of 2023, their accounts were penalized by the money set aside to bail out the FDIC, the agency guaranteeing bank deposits in the United States. The latter had to intervene following the bankruptcy of several regional banks in 2023, including Silicon Valley Bank. On the stock market, Bank of America shares lost 1.69% to $32.59 and Citigroup shares lost 0.56% to $51.77.
JPMorgan shares, however, rose 1.09% to $172.13.
Historic net profit for JPMorgan
JPMorgan posted a record annual profit despite falling fourth-quarter results. Over this period, the American bank recorded a 15% decline in its net profit to $9.3 billion, or $3.04 per share. For all of 2023, JPMorgan generated net income of $49.6 billion. Its accounts were penalized at the end of the year by a charge of $2.9 billion, which is intended to bring the FDIC back afloat.
Excluding exceptional items, earnings per share came to $3.97, well above the FactSet consensus of $3.35.
Revenue rose 12% to $38.57 billion, buoyed by the 19% jump in interest income to $24.2 billion and the buyout of troubled First Republic bank. The market, however, was targeting $39.73 billion.
In the fourth quarter, Bank of America’s net income fell 56% to $3.1 billion, or 35 cents per share. Its accounts were weighed down by a charge of 2.1 billion dollars before taxes – money intended to bail out the FDIC – and a charge of 1.6 billion euros linked to the end of Libor. Excluding exceptional items, earnings per share came to 70 cents. Regarding net banking income, this fell by 10% to 22 billion dollars, where the market expected 23.7 billion dollars. Interest income fell 5% to $13.9 billion.
Citigroup will cut its workforce
For its part, Citigroup recorded a loss in the fourth quarter, penalized by significant charges and provisions linked to Argentina, Russia and the FDIC. Investors had, however, already been warned via the publication of a notice with the Sec. It thus posted a net loss of $1.84 billion, or -$1.16 per share compared to a profit of $2.5 billion in the fourth quarter of 2022. Excluding exceptional items, earnings per share came to 84 cents. . Revenue fell 3% to $17.44 billion. Citigroup has indicated that it will cut 20,000 positions by the end of 2026.
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