Three of the nine big banks due to receive capital injections from the US government reported total Q3 profits of more than $2.6bn on Wednesday, highlighting the different needs of companies receiving assistance under the rescue plan. Wells Fargo and JPMorgan Chase, which are to receive $25bn each in government funds, said they earned $1.64bn and $527m, respectively, in the period, while State Street, which is to receive $2bn in federal money, put its net profit at $477m. Jamie Dimon, JPMorgan chief executive, said his bank did not need the capital injection and that the Treasury plan might benefit weaker competitors more. But he said JPMorgan did not want to stand in the way of an initiative that benefited the banking system as a whole. JPMorgan’s profits were down 84% from $3.4bn a year ago; earnings at Wells fell 24%, but rose 33% at State Street. Howard Atkins, Wells chief financial officer, said his bank intended to raise $20bn in equity from private sources to finance its pending acquisition of Wachovia.

This entry was posted by Gwen Robinson on Thursday, October 16th, 2008 at 5:38 and is filed under Capital markets. Tagged with jpmorgan, state street, wachovia, wells fargo. Edit this entry.