US and UK banks bask in stellar third-quarter results
The presentation of third-quarter data by major US and UK banks has frequently defied market expectations in recent weeks.
In the United States, Goldman Sachs reported a 66 percent increase in third-quarter pre-tax profits to $5.2 billion compared to the same period last year, while Bank of America’s profits increased by 58 percent to $7.7 billion, Citigroup’s profits increased by 48 percent to $4.6 billion, and JPMorgan Chase’s profits increased by 24 percent to $11.7 billion.
In the UK, NatWest’s profits tripled to £1.1 billion in the third quarter, Lloyds’ profits increased by 96 percent to £2 billion, Barclay’s profits doubled to £2 billion, and HSBC’s profits increased by 76 percent to $5.4 billion.
“Driving the strong results is the global economic rebound from the pandemic,” says Olivier Panis, an analyst at Moody’s. “Equity markets have soared and there has been a big increase in business volumes.”
“Banks have been operating in a very benign environment,” says Claudia Nelson, a banking analyst at Fitch Ratings. “They have been supported by various government support measures, which has led to widening asset margins, lower funding costs and increased savings volumes.”