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America’s big money center banks kick of first quarter earnings next week. There will be extra attention on them with the recent banking turmoil. Guid
[See the full post at: Big Banks Kick Off First Quarter Earnings Season with Citigroup, JPMorgan, PNC and Wells Fargo]JPMorgan (JPM 138.05, +9.05, +7.0%), Citigroup (C 48.63, +1.32, +2.8%), and BlackRock (BLK 695.18, +24.45, +3.7%) are some of the top performers while Wells Fargo (WFC 39.60, -0.04, -0.1%) and PNC Financial (PNC 119.33, -2.08, -1.7%) lag following earnings reports from all the aforementioned names.
Financial-related stocks received mixed reactions to earnings reports this morning.
M&T Bank (MTB 117.65, +1.06, +0.9%) beats by $0.05
The bank beat expectations for both its earnings and revenue. “These results reflect loan growth, steady credit quality, a strong liquidity position and, as in past years, seasonally higher salaries and employee benefits expense,” the company’s CFO said.
Charles Schwab (SCHW 48.91, -1.86, -3.7%) reported better than expected earnings
Q1 adjusted EPS of $0.93, topping the average analyst estimate of $0.90, fell from $1.07 in Q4 2022 and climbed from $0.77 in the year-ago quarter.
Net revenue of $5.12B, falling short of the $5.13B consensus, dipped from $5.50B in Q4 and rose from $4.67B in Q1 of last year.
Net interest revenue came in at $2.77B for the three months ended March 31, down from $3.03B in the prior quarter and up from $2.18B in Q1 2022.
Asset management and administration fees were $1.12B compared with $1.05B in Q4 and $1.07B a year before.
Trading revenue of $892M vs. $895M in Q4 and $963M in Q1 2022.
Bank deposit account balances of $106.5B dropped 16% from Q4 and 31% from the year-earlier period. Meantime, money market funds of $357.8B surged 28% from Q4 and 150% from a year ago.
Total expenses, excluding interest, advanced to $3.01B from $2.90B in Q4 and from $2.83B in Q1 2022.State Street (STT 70.75, -9.28, -11.6%) reported below-consensus earnings.
Q1 adjusted EPS of $1.52, trailing the average analyst estimate of $ 1.64, fell from $1.91 in Q4 2022 and from $1.57 in the year-earlier quarter. Revenue of $3.10B, vs. $3.13B consensus, slipped from $3.16B in Q4 and rose slightly from $3.08B in Q1 2022.
Fee income was $2.34B compared with $2.36B in Q4 and $2.57B in Q1 of last year, mostly reflecting the impact of lower average market levels on servicing and management fees, lower FX trading services and lower Front office software and data revenue, partially offset by higher Securities finance revenue and Other fee revenue.
Assets under custody or administration came in at $37.6T, up 2% from the prior quarter and down 10% from a year ago.
Offsetting fee revenue headwinds, net interest income of $766M slipped 3% from Q4 and surged 50% from Q1 2022, thanks to the rising interest rate environment.
Provision for credit losses rose to $44M from $10M in Q4, amid an increasingly uncertain economic outlook.
Total expenses of $2.37B vs. $2.26B in the previous quarter and $2.33B in Q1 2022.Going forward, “we are optimistic about client onboardings and we expect revenue growth in the coming quarter,” said CEO Ron O’Hanley.
Bank of America (BAC) beats by $0.11, beats on revs
BNY Mellon (BK) beats by $0.01, reports revs in-line
BNY Mellon (BK) on conference call says it still believes its outlook for 20% yr/yr growth in net interest revenue
is realistic with some skew to the upside; sees FY23 expenses up 4% yr/yrToronto-Dominion Bank (TD) expects The Charles Schwab Corporation’s (SCHW) Q1 earnings to translate into approx. CDN $241 mln of reported equity in net income of an investment in Schwab for the Bank’s fiscal 2023 Q2
Fulton Fincl (FULT) misses by $0.09, misses on revs… FULT down 1.7%
Western Alliance Bancorp (WAL) beats by $0.27, net interest income increased 35.7% yr/yr… WAL up 16.0%
Regions Fincl (RF) in annual shareholder meeting slides: liquidity position is stable; Q1 deposit flows largely in-line with expectations for balance normalization; March ending balances approximately flat with levels in early March… RF up 1.4%
Travelers (TRV 180.39, +8.39, +4.9%): beats by $0.52, beats on revs; raises dividend; authorizes additional $5 bln of share repurchases
U.S. Bancorp (USB 35.56, +0.37, +1.1%): misses by $0.08, reports revs in-line; guides Q2 revs in-line; guides FY23 revs in-line
Morgan Stanley (MS 88.75, -1.10, -1.2%): beats by $0.04, beats on revs
First Republic Bank
▼ 15.69% or ▼ 2.51 to 13.49 After HoursQ1 23 Earnings:
Rev: $1.2B (est $1.12B)
Deposits At End-Period $104.47B (est $136.67B)
Cutting Workforce By About 20%-25% In Q2
Deposits As Of April 21 Down 1.7% From March 31
Pursuing Strategic OptionsPacWest Bancorp stock higher after reports deposits stabilized in the latter part of March and rebounded in April $700m
(Compare to deposit outflows at First Republic Bank $FRB)
Reports EPS beat by $0.09, beats on revs;$PACW up 15.1% AH
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