Citigroup, JPMorgan Net Decline; Wells Fargo Says Scandal Hurt Earnings

Mukesh Buch
14 Oct, 2016
New York City

Citigroup net declined 12% on 5% drop in revenues. Commerce Bancshares net and revenues soared 6%. JPMorgan net plunged but revenues jumped. Wells Fargo net fell.

[R]12:10 PM New York – Citigroup net declined 12% on 5% drop in revenues. Commerce Bancshares net and revenues soared 6%. JPMorgan net plunged but revenues jumped. Wells Fargo net fell.[/R]

Tollbooth Index gained 27.09 or 0.3% to 10,900.97.

Earnings Review

Citigroup Inc ((C)) rose 33 cents to 48.80 after the financial services provider reported revenues in the third-quarter ending in September dropped 4.8% from a year ago to $17.8 billion.

Net income in the quarter declined 11.6% to $3.8 billion or $1.24 per diluted share compared to the $4.3 billion or $1.35 per share from the same quarter last year.

Citigroup said revenue from North American branded card business soared 15% to $2.2 billion but cost of credit in the quarter dropped 5% to $1.7 billion and operating expenses decreased 2% to $10.4 billion.

The bank said deposits in the quarter jumped 4% to $940 billion and loans increased 2% to $638 billion while allowance for loan losses fell 1.97% of total loans to $12.4 billion.

“We continued to grow core loans and deposits while reducing non-core assets to just 3%,” chief executive officer Michael Corbat said.

Commerce Bancshares, Inc ((CBSH)) slipped 1.8% or 90 cents to $48.60 after the banking services provider said revenues in the third-quarter ending in September advanced 6.3% from a year ago to $290.6 million.

Net income in the quarter jumped 6.3% to $66.3 million or 68 cents per diluted share compared to the $62.4 million or 63 cents per share from the same quarter last year.

Freeport-McMoRan Inc ((FCX)) increased 1.1% or 10 cents to $9.74 after the oil and natural gas explorer agreed to sell its onshore oil and gas assets to a private energy group Sentinel Peak Resources California LLC for total consideration of $742 million.

The transaction is expected to close in the fourth-quarter of this year.

JPMorgan Chase & Co ((JPM)) edged up 3 cents to $67.78 after the investment banker and financial services provider reported revenues in the third-quarter ending in September soared 8% from a year ago to $25.5 billion.

Net income in the quarter plunged 8% to $6.3 billion or $1.58 per diluted share compared to the $6.8 billion or $1.68 per share from the same quarter last year.

The investment banker said non-interest expense declined 6% to $14.5 billion and provision for credit losses was $1.3 billion, up from $682 million.

Wells Fargo & Co ((WFC)) fell 20 cents to $44.55 after the investment banking, insurance and brokerage services provider reported revenues in the third-quarter ending in September increased 2% from a year ago to $22.3 billion.

Net income in the quarter slid 3.4% to $5.6 billion or $1.03 per diluted share compared to the $5.8 billion or $1.05 per share from the same quarter last year.

""I am deeply committed to restoring the trust of all of our stakeholders, including our customers, shareholders and community partners,"" chief executive officer Timothy Sloan said on Friday.

The bank set aside funds for potential legal costs related to new account opening scandals and former chief executive and chairman John Stumpf stepped down after 34 years at the bank.