This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-28312474
The article has changed 3 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| JPMorgan profits fall but Goldman Sachs income rises | |
| (about 1 hour later) | |
| US banking giants JPMorgan Chase and Goldman Sachs have seen mixed results from their investment businesses. | US banking giants JPMorgan Chase and Goldman Sachs have seen mixed results from their investment businesses. |
| JPMorgan reported an 8% fall in second-quarter profits after declines in its securities trading business. | JPMorgan reported an 8% fall in second-quarter profits after declines in its securities trading business. |
| Net income in the three months to the end of June was $6bn (£3.5bn) - a fall of $500m compared with a year earlier. | Net income in the three months to the end of June was $6bn (£3.5bn) - a fall of $500m compared with a year earlier. |
| But Goldman Sachs saw a 5% profit rise after higher revenues from its investing and lending business. | But Goldman Sachs saw a 5% profit rise after higher revenues from its investing and lending business. |
| The bank earned $1.95bn in the three months to 30 June, up from $1.86bn in the same period a year earlier. | The bank earned $1.95bn in the three months to 30 June, up from $1.86bn in the same period a year earlier. |
| Bonds fall | |
| JPMorgan, the biggest US bank in terms of assets, saw net income from its corporate and investment business drop by $800m to $2bn, a fall of 31%. | |
| A decline in bonds and currencies trading by big institutions hit revenue in the bank's securities trading business. | |
| Nevertheless, the bank said it had seen a "strong performance" in overall investment bank fees. | |
| Its results beat market expectations and JPMorgan shares rose 3% to $57.96 in premarket trading on Tuesday. | |
| The bank's mortgage business also declined in the quarter, with mortgage lending down 38% to $709m. Mortgage application volumes dropped 54% to $30.1bn. | |
| US mortgage lending volumes have slowed as mortgage rates have risen. Last week, the largest US mortgage lender, Wells Fargo, reported a 39% drop in mortgage revenue in the second quarter. | |
| Goldman investment | |
| Goldman Sachs revenues from currency and commodity trading were down 10% to $2.22bn, but the firm's investment business was buoyed by mergers and acquisitions, and equity underwriting. | |
| The bank saw net revenue in its investing and lending division jump 46% to $2.07bn, including net gains of $1.25bn from investments in equities. | |
| "We are pleased with our results for the quarter in the context of mixed operating conditions during the period," said Goldman Sachs chief executive Lloyd Blankfein. | |
| "Good client activity in investment banking and investment management as well as a better environment for our investing and lending activities helped offset less favourable conditions for institutional client services," he said. |