Morgan Stanley reported better than expected third quarter earnings and revenue before the bell Tuesday. However in comparison to its peers and metrics such as net interest income falling short of forecasts the stock was sold off. The bank’s investment-banking revenue was weaker than forecasts, again an area where it’s competitors had found some recovery in this quarter. Morgan Stanley’s stock was down almost 8% in morning trading, which is on track for its largest one-day percentage drop since June … Continue reading “Morgan Stanley Stock Falls 8% to 52 Week Low After Key Earnings Metrics Miss”
Goldman Sachs Profits Continue Slide, Drop 33% to $2.06 billion on Consumer, Real Estate Woes
Goldman Sachs, America’s largest investment bank reported third quarter earnings Tuesday, though better than expected were a continuation of falling profits. This has been a horror stretch for the ‘Giant Squid’ with $GS cutting jobs and bonuses at a rate not seen since the financial crisis. Goldman’s quarterly profit dropped less than expected as a recovery in dealmaking offset the $864 million write-down related to its GreenSky fintech business and real estate investments. GS’s net profit slumped 33% to $2.06 … Continue reading “Goldman Sachs Profits Continue Slide, Drop 33% to $2.06 billion on Consumer, Real Estate Woes”
Bank of America Earnings Boosted by Trading as Debt Securities Portfolio Losses at $131.6 bln from $105.8 Billion
Bank of America, America’s second largest investment bank reported better than expected second earnings Tuesday. Three of the largest U.S. lenders, JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC) reported last Friday. Bank of America reported a profit of 90 cents per share in the quarter, beating analysts’ average expectations of 82 cents per share, according to IBES data from LSEG. Net interest income rose 4% to $14.4 billion (FTE basis). BAC reported unrealized losses of $131.6 billion on … Continue reading “Bank of America Earnings Boosted by Trading as Debt Securities Portfolio Losses at $131.6 bln from $105.8 Billion”
Citigroup Earnings Boosted by Investment Banking and Transaction Services Fees
Citigroup reported better than expected third quarter earnings Friday before the market open along with two of the largest U.S. lenders, JPMorgan Chase (JPM) and Wells Fargo (WFC). All five of Citi’s core businesses, corporate lending; credit cards and US consumer banking; transaction services; buying and selling stocks and bonds; and private banking posted rising revenue. Citigroup was able to benefit from a rebound in investment banking fees, up 34 per cent from a year ago. Citi’s transaction services division … Continue reading “Citigroup Earnings Boosted by Investment Banking and Transaction Services Fees”
Wells Fargo Earnings with Improving Wealth Management and Higher Net Interest Income
Wells Fargo reported better than expected third quarter earnings before the bell Friday. Wells Fargo reported earnings of $1.48 a share, compared with the $1.24 analysts surveyed by FactSet were expecting. Revenue jumped 7% year over year to $20.86 billion, ahead of analysts’ expectation of $20.09 billion. Of note was the Wealth and Investment Management segment, which includes the brokerage and private-banking businesses saw revenue was up 1% from a year ago to $3.7 billion in the third quarter. Wells … Continue reading “Wells Fargo Earnings with Improving Wealth Management and Higher Net Interest Income”
JPMorgan Profit Soars with Net Interest Income, Low Loan Losses Ahead of Expectations
JPMorgan Chase, America’s largest bank kicked off the banking sector’s third quarter earnings season on Friday before the market opened. JPM profit jumped 35%, boosted by higher interest rates including a lift from acquiring the failed First Republic Bank in early May. JPM net income climbed to $13.2bn, from $9.7bn a year earlier ahead of the $11.9bn analysts had expected, according to data compiled by Bloomberg. Net interest income, which at $22.7bn 30% higher than the same quarter a year … Continue reading “JPMorgan Profit Soars with Net Interest Income, Low Loan Losses Ahead of Expectations”
US Bancorp Earnings Top Expectations, Net Interest Income Guidance Tightens
Minneapolis-based U.S. Bancorp reported better than expected second quarter earnings on Wednesday before the market opened. USB’s Q2 adjusted EPS of $1.12, was ahead of the $1.10 consensus, fell from $1.16 in the prior quarter and increased from $1.09 in the year-ago period. The lagged effect of higher rates hit net interest income which slipped to $4.45B from $4.67B in the previous quarter and rose from $3.46B a year ago, a 28% jump in quarterly net interest income (NII). US Bancorp … Continue reading “US Bancorp Earnings Top Expectations, Net Interest Income Guidance Tightens”
The Giant Squids Horror Stretch Continues, Goldman Sachs Profit Drops 58%
Goldman Sachs, America’s largest investment bank reported worse than expected second quarter earnings Wednesday. This has been a horror stretch for the ‘Giant Squid’ with $GS cutting jobs and bonuses at a rate not seen since the financial crisis. Goldman was the only one among its big-bank peers to miss per-share earnings expectations. Citigroup and Morgan Stanley did report profit declines, however Goldman’s decline dwarfed theirs. Investment banking activity continued to drop off as higher interest rates and a weakening … Continue reading “The Giant Squids Horror Stretch Continues, Goldman Sachs Profit Drops 58%”
Bank of America Earnings Boosted by Global Banking, Debt Securities Portfolio Losses at $105.8 Billion
Bank of America, America’s second largest investment bank reported better than expected second earnings Tuesday. Three of the largest U.S. lenders, JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC) reported last Friday. Bank of America reported second-quarter EPS of $0.88, exceeding the average analyst estimate of $0.83, fell from $0.94 in Q1 2023 and rose from $0.73 in Q2 2022. Net interest income was $14.3B ((FTE basis)), vs. $14.3B consensus, compared with $14.6B in the prior quarter and $12.5B … Continue reading “Bank of America Earnings Boosted by Global Banking, Debt Securities Portfolio Losses at $105.8 Billion”
Morgan Stanley Profit Hit by Lower Trading Revenue
Morgan Stanley reported better than expected second quarter earnings before the bell Tuesday despite much lower-than-expected revenue from trading. MS posted a profit of $2.18 billion, or $1.24 a share. That beat the $1.15 a share expected by analysts, according to estimates compiled by FactSet. Revenue increased 2% to about $13.5 billion, beating expectations of $13.02 billion. Shares rose 5% just after the market open despite concerns about the economy and future deals. Morgan Stanley’s trading revenue fell 22% from … Continue reading “Morgan Stanley Profit Hit by Lower Trading Revenue”