- Former Pakistan captain Azam dropped for second England Test
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- Australia replace injured Vlaeminck with Graham at Women's T20 World Cup
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- Israel hits Lebanon from the air and fights Hezbollah on the ground
- China's Yin has 'goosebumps' as she romps to LPGA win in Shanghai
- Pakistan to re-use Multan pitch for second England Test
- Blair and King Charles hail Salmond's 'devotion' to Scotland
- Vietnam, China hold talks on calming South China Sea tensions
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- England captain Stokes in line for second Pakistan Test return
- Japan's former empress Michiko discharged after surgery: reports
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- Israel widens Lebanon strikes as troops fight Hezbollah along border
- Bowlers' graveyards: Pakistan's placid pitches under fresh fire
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- Vietnam, China to expand rail links, cross-border payments
- Americans get their belief back as Pochettino makes his mark
- Vietnam, China to boost economic, defence cooperation
- Winning start for Pochettino's American adventure
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- Ronaldo on target again as Portugal defeat Poland in Nations League
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- AFP, BBC win top French war reporting awards
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US banks report mixed results, see consumers as still fairly healthy
Large US banks reported mixed results Friday, dented by exceptional costs connected to job cuts and to replenishing a federal fund tapped during last year's crisis involving midsized lenders.
But while consumer credit quality has diminished somewhat, executives continued to describe relatively resilient US economic conditions.
"The consumer credit narrative broadly is that the consumer is fine," said JPMorgan Chase Chief Financial Officer Jeremy Barnum, who characterized an uptick in charge offs for bad loans as reflecting a "normalization" of the credit market, rather than a "deterioration."
Barnum's boss, Chief Executive Jamie Dimon, said the US economy "continued to be resilient," while noting in an earnings press release that the bank remains "cautious" in light of wars in Ukraine and Gaza, and the risk that inflation will turn out to be "stickier" than expected.
JPMorgan, the biggest US lender by assets, reported a drop in fourth-quarter profits from the year-ago period, due to costs of $2.9 billion for a Federal Deposit Insurance Corporation (FDIC) special assessment after the failures of Silicon Valley Bank and Signature Bank.
Bank of America, Citigroup and Wells Fargo all paid assessments of around $2 billion for the FDIC fund.
But JPMorgan's profits still topped analyst estimates. Overall, its profits were $9.3 billion, down 15 percent from the year-ago period, while revenues rose 12 percent to $38.6 billion.
Operating profits were boosted by higher net interest income following several Federal Reserve rate increases that enabled JPMorgan to charge more for loans.
"When thinking about consumer credit... what really matters is the strength of the labor market," Barnum told reporters on a conference call. "And obviously the labor market remains quite strong."
JPMorgan's increase in net interest income was not matched at other leading banks, which reported decreases in that area to the shifting balance of deposits and loans.
Overall, Bank of America reported profits of $3.1 billion, down 56 percent, reflecting lower net interest income, as well as the hit from the FDIC special assessment.
Wells Fargo reported profits of $3.5 billion, up nine percent, the only one of the four banks to see an increase compared with the 2022 period.
Besides the FDIC fee, Wells' results included a $1 billion hit for severance costs due to job cuts.
As with JPMorgan and Bank of America, Wells Fargo saw an increase in charge offs compared with the prior quarter.
But Chief Executive Charlie Scharf characterized credit quality as a "modest deterioration" that is "consistent with our expectations."
- Citi in the red -
Citigroup was the only one of the large banks to report a fourth-quarter loss, of $1.9 billion compared with profits of $2.5 billion in the 2022 period. Revenues fell three percent to $17.4 billion.
The results were weighed down by costs including $780 million for severance and other expenses connected to a reorganization.
The bank has also significantly shrunk its global consumer banking footprint, divesting assets in China, Vietnam and other markets.
Once the restructure is completed, "we will have a simpler firm that can operate faster, better serve our clients and unlock value for our shareholders," Citi Chief Executive Jane Fraser said.
Overall, Citi plans to trim 20,000 jobs over the medium term.
The move will put headcount at about 180,000 in the 2026 time period, down from 240,000 at the end of 2022 -- while also reflecting the expected spinoff of Citi's Mexico subsidiary, Banamex.
Shares of JPMorgan rose 1.2 percent, while Citi fell 0.5 percent. Bank of America dropped 1.9 percent and Wells Fargo lost 1.8 percent.
A.Malone--AMWN