Asian crisis hurts US banks

Three of America's largest banks, JP Morgan, Citicorp and Chase Manhattan, yesterday revealed that slowing economies and plunging financial markets in Asia hurt their fourth-quarter profits. JP Morgan suffered the largest blow from Asia, as earnings fell 35 per cent. Market slumps in the region caused losses in the bank's derivatives business, and about $587m (pounds 460m) of assets were "non-performing".

Chase said its fourth-quarter earnings declined by 5.7 per cent as the bank lost money in trading. Citicorp said fourth-quarter profit from operations rose 7.5 per cent, exceeding analysts' expectations.