Third quarter pre-tax profit at Europe’s biggest bank more than doubled to $7.7 billion. Revenue rose 40% year-on-year to $16.2 billion as the lender reported higher interest income. The results, however, fell shy of expectations from analysts, who had projected about $8.1 billion in pre-tax profit and revenue of $16.3 billion.
said it had adjusted its expected credit losses — the money it sets aside for defaults on loans — to include a charge of $500 million related to commercial real estate in mainland China. The charge was “related to heightened economic uncertainty, inflation and rising interest rates, as well as from ongoing developments” in the sector, according to the bank.
added. “There is potential for a further deterioration in credit conditions during the last three months of the year given the continued uncertainty around liquidity support.” On an analyst call Monday, Quinn said while the industry could bear some further losses, “I think the market itself has bottomed.” “Now we’re in a period of readjustment for the new norm,” he added. “I don’t see a big swing back … I see it as fine tuning from this low base.