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”

Wells Fargo Earnings Stabilizing with Higher Net Interest Income on Higher Rates

Wells Fargo reported better than expected second quarter earnings before the bell Friday. Wells Fargo reported its net income $1.25 a share on revenue of $20.5 billion, ahead of analysts expecting $1.16 a share on revenue of $20.1 billion. Net interest income of $13.2 billion came in well above Wall Street estimates of $12.8 billion. Wells Fargo cautioned on commercial real estate and higher credit card loans increasing its allowance for possible credit losses by $949 million in the quarter. … Continue reading “Wells Fargo Earnings Stabilizing with Higher Net Interest Income on Higher Rates”

JPMorgan Profit Soars with First Republic & Record Net Interest Income

JPMorgan Chase, America’s largest bank kicked off the banking sector’s second quarter earnings season on Friday before the market opened. JPM profit jumped 67%, including a lift from acquiring the failed First Republic Bank in early May. FRC led to an immediate $2.7 billion gain but the bank also took $1.2 billion in credit charges. Four of the largest U.S. financial institutions also reported, Wells Fargo (WFC), Citigroup (C), BlackRock (BLK) and State Street (STT). Notably all exceeded consensus earnings … Continue reading “JPMorgan Profit Soars with First Republic & Record Net Interest Income”

Citigroup Earnings Hampered by Slump in Trading and Investment Banking

Citigroup reported better than expected second quarter earnings Friday before the market open along with two of the largest U.S. lenders, JPMorgan Chase (JPM) and Wells Fargo (WFC). Citigroup was able to benefit from higher interest income from borrowers to partly counter from a slump in trading and investment banking. $C reported earnings of $2.92 billion, or $1.33 per share, in the three months to June 30, down 36%. The profit was weighed down by higher layoff costs and increased … Continue reading “Citigroup Earnings Hampered by Slump in Trading and Investment Banking”

Big Banks Kick Off Second Quarter Earnings Season with Citigroup, JPMorgan, State Street and Wells Fargo

America’s big money center banks kick of second quarter earnings next week. Core commercial and consumer banking franchises are expected to show improved profitability. However, there is continued weakness in investment banking and concerns are rising over the banking sector’s exposure to commercial real estate, asset quality is being scrutinized in earnings. Signs of asset quality deterioration are a risk. JPMorgan Chase (JPM), Citigroup (C), BlackRock (BLK), State Street (SST) and Wells Fargo (WFC) reporting Q2 results on Friday July … Continue reading “Big Banks Kick Off Second Quarter Earnings Season with Citigroup, JPMorgan, State Street and Wells Fargo”