GLOBAL - As banks continue to post third quarter trading results, the picture that has emerged has been very mixed, with third quarter losses balanced by overall year-to-date profits and strong performances in other divisions.
American International Group (AIG) posted a fall in net income for the third quarter of US$3.09bn, representing a 27% drop on the same time last year. However, year to date net earnings at the end of September remained strong, up 8.3% $11.49bn and the asset management division reported “strong operating income growth”.
Commenting on the results, Martin Sullivan, president and CEO AIG, said: “While US residential and credit market conditions adversely affected our results, our active and strong risk management processes helped contain the exposure.”
BNP Paribas posted a 12.6% rise in revenues for the period, to €7.6bn ($11.1bn) with only a €301m ($441.4m) write down as a direct result of US sub-prime exposure.
However, as Global Pensions reported back in August, BNP Paribas temporarily closed three funds exposed to the sub-prime crisis in order to weather out the sub-prime storm. The three funds had a collective exposure of about a third and were reopened at the end of August.
Morgan Stanley also released its third quarter results, showing a total sub-prime exposure $12.3bn, causing revenues to fall by $3.7bn. Again, Morgan Stanley reaffirmed strong performances in other areas, and stated it expected to “deliver solid results” subject to market conditions.
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