The market leader, JPMorgan is on the best way to earn more money this year than Deutsche Bank is currently in the process of exchange-value: In the case of the large US banks, the profits gushing forth, and also thanks to Trump.
The major American banks JPMorgan Chase, Citigroup and Wells Fargo have earned in the summer, thanks to lower taxes, higher interest rates and the booming US economy is shiny. The largest U.S. financial institution, JPMorgan Chase increased its profit in the third quarter by almost a quarter to 8.4 billion dollars (7.3 billion euros), as from the in New York on Friday published financial report.
CEO Jamie Dimon said “strong results” with good growth in all areas of the business. “The U.S. and the world economy continue to show strength,” said Dimon. The JPMorgan chief added, however, that the geopolitical uncertainties would continue to increase. In the past quarter, the Institute benefited from good business in the financial markets, as well as from strong credit growth. Here, the Bank benefited from the rise in interest rates in the United States, making the business more profitable.
Significantly more gains in the three Major
In the first nine months, JPMorgan earned already 25.4 billion dollars and is well on the way to a record profit in the current year. Analysts expect a total profit of around 31 billion dollars (26.8 billion euros). Thus, JPMorgan 2018 would earn more than the German Bank is currently in the stock market value. The US Institute benefits, however, greatly from the tax cuts of the administration of President Donald Trump. You could JPMorgans tax rate in the latest quarter from 29.6 to 21.6 percent.
Also the competitor Citigroup made significantly more profit. In the third quarter, net Income increased compared with the previous year by twelve percent to $ 4.6 billion (4.0 billion Euro), as the money house announced in New York. Overall, income stagnated, however, at 18.4 billion dollars. Bank chief Michael Corbat made primarily to the sale of a business responsible. On an adjusted Basis, there was an increase of four percent.
Citigroup headquarters in New York
The rival Wells Fargo increased its net profit in the three months to the end of September, in the year-on-year by around a third to 6.0 billion dollars (5.2 billion euros). In the case of income, according to the Bank, however, only a slight increase to 21.9 billion dollars. The higher interest rates for Wells Fargo only advantages, because you can deter borrowers. This was already the case of mortgage loans noticeable. The Bank fights to scandals due to fake accounts and other dubious sales practices with Image problems.
Risks are lurking everywhere
However, the fears of a economic downturn will not last because of the trade disputes greater. The economy is strong, but “everywhere, the geopolitical uncertainties, fly us around the ears,” said JP Morgan chief Jamie Dimon. The Inflation prepares him also.
The US Central Bank, the Fed, has raised the Displeasure of the US President, Donald Trump the key interest rate in 2018 and a total of three Times, in order to prevent the economy from Overheating and to keep inflation in control. Currently the policy rate is in the USA at the level of 2.00 to 2.25 per cent. Thanks to the sustained economic growth and low unemployment, which has recently fallen to its lowest level in nearly five decades, the demand for loans is high. The interest income of the banks increases, the stresses decrease due to bad loans. In addition, the Institute of Trumps tax benefit reform to be decreased by the corporate income tax beginning of the year to 21 percent from 35 percent.
zdh/ml (dpa, rtr)