Citigroup, Bank of New York, Bank of America, J.P. Morgan Beat Earnings Targets

Four big banks post strong results.
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Four of the world's largest banks reported outsized earnings growth Monday as lending revenue recovered from last year's depressed levels.

Third-quarter earnings at

Citigroup

(C) - Get Report

,

Bank of America

(BAC) - Get Report

,

Bank of New York

(BK) - Get Report

and

J.P. Morgan

(JPM) - Get Report

beat Wall Street expectations. Anything less than explosive growth would have disappointed Wall Street because the results are compared to last year, when Russian debt, Asian financial jitters and the collapse of

Long Term Capital Management

combined to spook the banking business.

Citigroup said third-quarter profits jumped 236% from a year ago, beating Wall Street expectations by 2 cents. For the third quarter ended Sept. 30, the bank reported net income of $2.5 billion, or 70 cents a diluted share. For the year-ago quarter, earnings were $729 million, or 20 cents a diluted share. Analysts surveyed by

First Call/Thomson Financial

expected the bank to earn 68 cents a share.

Bank of America said third-quarter profits were almost 6 times those of a year ago, beating Wall Street expectations by 2 cents. For the third quarter ended Sept. 30, the bank reported net income of $2.15 billion, or $1.23 a diluted share. For the year-ago quarter, earnings were $374 million, or 21 cents a diluted share. Analysts surveyed by First Call/Thomson Financial expected the bank to earn $1.21 a share.

Bank of New York said third-quarter profits jumped 156% from a year ago, beating Wall Street expectations by 60 cents. For the third quarter, the bank reported net income of $773 million, or $1.02 a diluted share. For the year-ago quarter, earnings were $301 million, or 39 cents a diluted share. Analysts surveyed by First Call/Thomson Financial expected the bank to earn 42 cents a share.

J.P. Morgan said third-quarter profits nearly tripled from a year ago, beating Wall Street expectations by 7 cents. The bank also set plans to buy back $3 billion worth of common stock and raise its quarterly dividend by a penny to $1.

For the third quarter, Morgan reported net income of $442 million, or $2.22 a diluted share, on net revenue of $1.99 billion. For the year-ago quarter, earnings were $156 million, or 75 cents a diluted share. Analysts surveyed by First Call/Thomson Financial expected the New York-based bank to earn $2.15 a share. Expectations for strong results at Morgan rose sharply during the quarter, with estimates climbing 11% from the $1.93 analysts were predicting 90 days ago.