Goldman Sachs Bond Trading Revenue Smashes Expectations with Elevated Volatility

Goldman Sachs, America’s largest investment bank reported better than expected second quarter earnings Monday, driven by bullish results in its FICC global markets trading (fixed-income, currencies, and commodities). FICC helped offset a sharp decline in investment banking revenue. The trading goliath followed five of the largest U.S. banks, JPMorgan Chase (JPM), Citigroup (C), PNC, Morgan Stanley (MS) and Wells Fargo (WFC) reporting mixed results last week. The Giant Squid Delivered Superior Trading Results Goldman Sachs Group Inc NYSE: GS Reported … Continue reading “Goldman Sachs Bond Trading Revenue Smashes Expectations with Elevated Volatility”

Bank of America Loan Balances Growing with Higher Interest Rates Boosting Revenues

Bank of America, America’s second largest investment bank reported better than expected second earnings Monday following three of the largest U.S. lenders, JPMorgan Chase (JPM), Citigroup (C), and Wells Fargo (WFC) reporting mixed results last week. $BAC posted earnings down 32% to $6.25 billion, or 73 cents a share, from a year earlier as the firm took a $523 million provision for credit losses. Revenue rose 5.6% to $22.79 billion as net interest income surged 22% to $12.4 billion on … Continue reading “Bank of America Loan Balances Growing with Higher Interest Rates Boosting Revenues”

Citigroup Earnings Beat Expectations with Strong Trading in Fixed Income and Net Interest Margin

Citigroup (NYSE:C) second quarter earnings topped analysts’ estimates even though they saw a 46% drop in profit. The stock pre-market traded higher at 46.39+2.22 or 5.10% after the results. Citi saw revenue drop in investment banking 46%, mirroring declines seen at JPMorgan Chase and Morgan Stanley releases yesterday. On the positive side trading profit from trading were up strongly. The bank’s profitability on lending increased thanks to the Federal Reserve’s interest rate increases. Net interest margin, a gauge on lending … Continue reading “Citigroup Earnings Beat Expectations with Strong Trading in Fixed Income and Net Interest Margin”

BlackRock Profits Fall as Assets Under Management Decrease $1.1 trillion With Lower Investor Confidence in Markets

BlackRock the world’s largest investment management company reported weaker than expected second quarter earnings on Friday. $BLK traded down at 578.11, -10.52, -1.8% after it missed by $0.66, Revenue dipped 6% to $4.53 billion, slightly below analysts’ estimates of $4.55 billion. The bearishness in the markets lowered the firm’s assets under management to $8.5 trillion, from $9.6 trillion in the first quarter. Performance fees from the firm’s actively managed funds fell 69% to $106 million, with the biggest decline coming … Continue reading “BlackRock Profits Fall as Assets Under Management Decrease $1.1 trillion With Lower Investor Confidence in Markets”

Wells Fargo Earnings Disappoint as Revenue Falls from Slow Down in Mortgage Banking.

Wells Fargo second quarter earnings came in lower than expected with many of America’s largest money center banks this week. Wells Fargo stock, $WFC fell to 38.36, -0.38, -1.0% after missing on revenues across all segments, dropping to $17.02 billion from $20.27 billion. The banks sharp drop in profits flowed from boosting its provision for credit losses by $580 million in the second quarter. Wells Fargo reminds us of its regulatory issues continue Reporting also this week were JPMorgan Chase (JPM) PNC … Continue reading “Wells Fargo Earnings Disappoint as Revenue Falls from Slow Down in Mortgage Banking.”

Morgan Stanley Investment Banking Hit by Capital Markets Seizing Up

Morgan Stanley reported worse than expected second quarter earnings before the bell Thursday on lower-than-expected revenue from investment banking. $MS released earnings ahead of major competitor Goldman Sachs and four of the largest U.S. lenders Wells Fargo, Citigroup and PNC. Morgan Stanley’s trading segment helped out as fixed-income revenue surged amid heightened volatility and clients repositioning their books as interest rates surged higher across the curve. Morgan Stanley NYSE: MS Reported Before Open Thursday $1.39 Missed $1.57 EPS AND $13.3 … Continue reading “Morgan Stanley Investment Banking Hit by Capital Markets Seizing Up”

JPMorgan Sets Aside More for Bad Loans and Suspends Buybacks after Earnings Miss

JPMorgan Chase kicked off second quarter earnings with worse than expected earnings. Investment-banking fees were down sharply, much like competitor Morgan Stanley had also reported as capital markets seized up. JPM added to the $900 million set aside for potential future losses last quarter with another $428 million. The bank also temporarily suspended share buybacks. Trading revenue rose15% to $7.8 billion but less than analysts had expected. JPMorgan shares already down 29% this year fell another 2.4% on the release. … Continue reading “JPMorgan Sets Aside More for Bad Loans and Suspends Buybacks after Earnings Miss”

Federal Reserve Gives All Banks a Pass in Annual Bank Stress Test

The Federal Reserve released its annual bank stress test after the market close Thursday. All 34 large banks tested remained well above their risk-based minimum capital requirements, and the Fed announced no restrictions relating to dividends and buybacks. With the dismal state of the economy through soaring inflation and record low consumer sentiment these tests were keenly watched. Banks suffered slightly more hypothetical losses in the 2022 severe test than last year, posting $612 billion in projected losses as capital … Continue reading “Federal Reserve Gives All Banks a Pass in Annual Bank Stress Test”

Morgan Stanley Advisory Revenue Nearly Doubled Offsetting Weakness in Underwriting

Morgan Stanley reported better than expected first quarter earnings before the bell Thursday on stronger-than-expected advisory revenue and equity income trading up 10%. $MS release follow major competitor Goldman Sachs and four of the largest U.S. lenders Wells Fargo, Citigroup and PNC reporting mixed results. Morgan Stanley’s wealth management division continues to drive of consistent results, Morgan Stanley NYSE: MS Reported Before Open Thursday $2.01 Beat $1.91 EPS AND $14.5 Billion Missed $14.56 Billion Forecast in Revenue MS Q1 2022 … Continue reading “Morgan Stanley Advisory Revenue Nearly Doubled Offsetting Weakness in Underwriting”

Wells Fargo Revenue Falls in Consumer, Corporate and Investment Banking

Wells Fargo (NYSE: WFC) kicked off first quarter earnings with the other major money center banks along with America’s largest money center banks this week. WFC’s adjusted profit of 88 cents a share did beat expectations, but revenue missed across all segments. Wells Fargo reminded us of its regulatory issues with a 460 million increase in operating losses primarily driven by customer remediation expenses., Reporting also this week were JPMorgan Chase (JPM) Goldman Sachs (GS), PNC Bank (PNC), Morgan Stanley … Continue reading “Wells Fargo Revenue Falls in Consumer, Corporate and Investment Banking”