Page 25 - ARUBA TODAY

BUSINESS Friday 13 OctOber 2017
A25

In JP Morgan’s 3Q, Media and retail losses pull stock indexes lower
consumer banking
offsets trading dip change.
AT&T said it lost about
By KEN SWEET 90,000 DirecTV video sub-
NEW YORK (AP) — JPM- scribers in the U.S. in the
organ Chase & Co. third- third quarter because of
quarter profits rose 7 per- growing competition in
cent from a year earlier, streaming video servic-
as the bank as able to in- es. That’s a bigger drop
crease revenue in its con- than the one it reported a
sumer banking business year ago even though it’s
even though the company launched DirecTV Now, an
saw a sizeable drop in trad- online service that doesn’t
ing revenue in the quarter. cost as much. The compa-
The biggest bank by de- ny said tighter credit stan-
posits and assets said dards and hurricanes also
Thursday that it earned affected its business. AT&T
a profit of $6.73 billion, stock fell $2.33, or 6.1 per-
or $1.76 per share, com- cent, to $35.86.
pared with $6.29 billion, or Verizon Communications
$1.58 a share, in the same shed 51 cents, or 1 percent,
period a year earlier. The to $48.35 and cable pro-
results beat analysts’ fore- vider Comcast fell $1.47, or
cast of $1.65 a share, ac- 3.8 percent, to $35.95. Dish
cording to FactSet.JPMor- Trader Kevin Walsh, foreground left, works with specialist Jay Woods, right, on the floor of the New Network slid $2.62, or 5.1
gan’s consumer bank was York Stock Exchange, Thursday, Oct. 12, 2017. U.S. stock indexes retreated from their record highs percent, to $49.03. Cable
the driver of this quarter’s Thursday as retailers and media companies declined. channel operator Discov-
growth, reporting a 16 per- (AP Photo/Richard Drew) ery Communications lost
cent rise in net income. By MARLEY JAY and satellite TV compa- the run that these stocks 72 cents, or 3.6 percent, to
The bank saw higher de- AP Markets Writer nies also stumbled. Indus- have had into these earn- $19.28.Industrial and trans-
posit and loan growth and NEW YORK (AP) — U.S. stock trial companies and house- ings reports, they’re going portation companies like
higher revenue in its credit indexes retreated from hold goods makers finished to need to see these other railroads did better than
card division, which the their record highs Thurs- higher. businesses pick up steam.” the rest of the market.
bank has been expanding day as retailers and media JPMorgan Chase and The Standard & Poor’s 500 Machinery maker Cater-
aggressively in the last year companies declined and Citigroup both did better index fell 4.31 points, or 0.2 pillar gained $1.39, or 1.1
with a new high-end credit investors shrugged at quar- than analysts expected in percent, to 2,550.93. The percent, to $129.99 and
card known as Chase Sap- terly reports from a few big the third quarter, but their Dow Jones industrial aver- railroad operator Norfolk
phire Reserve. Charge-offs banks. stocks fell and so did shares age lost 31.88 points, or 0.1 Southern rose $2.20, or 1.7
in that business have been Clothing companies and of other banks. They’ve percent, to 22,841.01. The percent, to $133.69.
creeping steadily higher other retailers fell after made big gains over the Nasdaq composite dipped Citigroup said its invest-
for several quarters, how- women’s clothing com- last month. 12.04 points, or 0.2 percent, ment banking business did
ever, and the bank had pany J. Jill slashed its third- CFRA Investment Strate- to 6,591.51. Those three well in the latest quarter,
to set aside an additional quarter forecast. The com- gist Lindsey Bell said the indexes closed at record while JPMorgan Chase
$223 million to cover po- pany’s stock lost more than companies reported good highs Wednesday. The Rus- said its consumer banking
tential losses.Despite the half its value. results from their consumer sell 2000 index of smaller- business improved com-
creep up in delinquencies, AT&T had its worst one- banking businesses, but company stocks slumped pared to a year ago. But
“the U.S. consumer remains day loss since 2008 after it other divisions didn’t do as 1.76 points, or 0.1 percent, Citigroup fell $2.57, or 3.4
healthy,” JPMorgan Chase said lost more satellite and well. to 1,505.16. percent, to $72.37 and
CEO Jamie Dimon said in cable TV subscribers in the “The bar was set kind of More stocks rose than fell JPMorgan gave up 85
a statement. In a call with third quarter. Other cable high,” she said. “Given on the New York Stock Ex- cents to $95.99.q
reporters on Thursday, JPM-
organ Chief Financial Offi- Investment banking gains drives Citi’s Q3 profits
cer Marianne Lake said the
creep up in delinquencies By KEN SWEET the quarter, despite a no- trading was up 16 percent enue was $4.6 billion in
was within the bank’s ex- AP Business Writer table drop in bond trad- and security services were the quarter, up 16 percent
pectations.The bank was NEW YORK (AP) — Financial ing revenue. Citi’s institu- up 12 percent. Citi’s drop from a year earlier. The
able to grow loans across conglomerate Citigroup tional client group, which in bond trading revenue is bank saw more underwrit-
the board in its consumer said its third-quarter profits contains its trading desks similar to what JPMorgan ing of stock and bond of-
business: credit cards, busi- increased 8 percent from and investment bank, had Chase reported on Thurs- ferings by companies as
ness loans, auto loans as a year earlier, helped by net income of $3.04 billion day as well. well as more fees for advi-
well as mortgages. Along a boost in its investment compared with $2.64 billion Investment banking rev- sory services.q
with the growth in loans, the banking division. in the same period a year
bank benefited from a rise Citigroup said it earned earlier.
in interest rates. Net interest $4.13 billion, or $1.42 per In a statement, Citigroup
income rose to $16.68 bil- share, compared with a CEO Michael Corbat said
lion in the quarter, up from profit of $3.84 billion, or the bank had “a very solid
$14.07 billion a year earlier. $1.24 per share, in the quarter” across Citi’s busi-
And the bank’s net interest same period a year earlier. nesses.
margin, which measures a The results beat analysts’ While Citi’s trading desks
bank’s profitability by com- expectations, who were focus heavily on bond and
paring how much it makes looking for $1.32 per share, currency trading, it was the
from lending money versus according to FactSet. bank’s other trading desks
how much it costs to bor- Citigroup’s investment that stood out.
row, grew to 2.37 percent bank was the driver of While bond trading was
from 2.24 percent. q the bank’s profit growth in down 16 percent, stock