What to Expect from Citigroup Earnings as It Continues its Strategic Transformation

Citigroup report second quarter earnings Friday before the market open along with three of the largest U.S. lenders, JPMorgan Chase (JPM), Wells Fargo (WFC) and State Street (STT). The higher interest rate environment continues to drive NII however the expected slowdown in loan growth, higher deposit costs, and continued weakness in investment banking income puts earnings under pressure. The focus will also be on deposit levels and any guidance. Citi is dragging through its strategic transformation under Jane Fraser and … Continue reading “What to Expect from Citigroup Earnings as It Continues its Strategic Transformation”

What to Expect from JPMorgan Earnings with the Acquisition of First Republic Bank

JP Morgan Chase, America’s largest bank kicks off the banking sector’s second quarter earnings season on Friday before the market opens along with three of the largest U.S. lenders, Wells Fargo (WFC), Citigroup (C) and State Street (STT). JPM’s revenue growth will primarily be driven by higher net interest income, in the first quarter, the bank grew its revenues by 25% primarily due to an expanding net interest margin. However, this has a lagged affect. The acquisition of First Republic … Continue reading “What to Expect from JPMorgan Earnings with the Acquisition of First Republic Bank”

What to Expect from Wells Fargo Earnings as Net Interest Margin Contracts

Wells Fargo report second quarter earnings before the bell Friday along with three of the largest U.S. lenders, JPMorgan Chase (JPM), Citigroup (C) and State Street (SST). Wall Street expects Wells Fargo earnings will show an overall revenue decline for the bank. A rise in net interest income to be hurt by weakness in lower loan origination and softer trading gains. Wells Fargo continues to be hurt by a variety of legacy regulatory and legal settlements. Wells Fargo Earnings Preview … Continue reading “What to Expect from Wells Fargo Earnings as Net Interest Margin Contracts”

The Beat Goes On; America’s 23 Biggest Banks Pass Federal Reserve Stress Tests

The Federal Reserve on Wednesday announced the 23 largest US lenders had passed the Central Banks Stress Tests. The banks showed they can withstand a severe global recession and turmoil in real estate markets. The Fed released the hypothetical scenarios for its annual bank stress tests back in March before the New York and California regional bank turmoil. The 23 banks were tested against a severe global recession with heightened stress in both commercial and residential real estate markets, as … Continue reading “The Beat Goes On; America’s 23 Biggest Banks Pass Federal Reserve Stress Tests”

Citigroup to IPO Banamex Mexico Retail, Resume Buybacks

Citigroup reported Wednesday it plans to spin off its Mexican retail and small and mid-market banking operations through an initial public offering (IPO) rather than sell the Banamex unit outright. Banamex’s institutional business will remain part of Citi. Citigroup has been on a path of rationalizing it’s business, the Bank reported better than expected first quarter earnings of $2.19 per share for the quarter beating estimates of $1.70 a share last month. Citi divested its consumer business in India and … Continue reading “Citigroup to IPO Banamex Mexico Retail, Resume Buybacks”

An RBA Fit for The Future, 51 Revolutionary Recommendations for Australia’s Central Bank

The release of an independent review on the Reserve Bank of Australia, An RBA fit for the future is the biggest clean up, if not revolutionary change for the RBA since inflation targeting and formal independence was established in the 1990s. The review gave 51 recommendations, which the Government gave in-principal support to all of them, were outlined by the Australian Treasurer on Thursday. The report identified 4 ways the governance, monetary policy framework, culture and systemsof the RBA should … Continue reading “An RBA Fit for The Future, 51 Revolutionary Recommendations for Australia’s Central Bank”

Morgan Stanley Wealth Management Revenue Rose 11% While Investment Banking Revenue Fell 24%

Morgan Stanley reported better than expected first quarter earnings before the bell Wednesday despite much lower-than-expected revenue from investment banking. MS posted a profit of $2.98 billion, or $1.70 a share ahead of $1.63 a share estimates. Revenue declined 2% to $14.52 billion in the quarter but beat expectations of $13.97 billion. Shares however fell 3% in premarket trading with concerns about the economy and future deals. Investment banking revenue, including fees from mergers and acquisitions, fell 24% from a … Continue reading “Morgan Stanley Wealth Management Revenue Rose 11% While Investment Banking Revenue Fell 24%”

Goldman Sachs Revenues Miss, Discloses Losses in Marcus and Real Estate

Goldman Sachs, America’s largest investment bank reported worse than expected first quarter earnings Tuesday, hit by the ongoing dealmaking slump and a major loss recognized in the money-losing consumer bank Marcus. GS disclosed a $470 million loss “related to a partial sale of the Marcus loans portfolio”. Goldman also took a $355 million loss related to its real estate investments. Goldman reported net earnings of $3.23 billion, or $8.79 per share in the first quarter, down 18% compared to the … Continue reading “Goldman Sachs Revenues Miss, Discloses Losses in Marcus and Real Estate”

Bank of America Earnings Benefiting from Higher Interest Rates and Solid Loan Growth

Bank of America, America’s second largest investment bank reported better than expected first earnings Tuesday. Three of the largest U.S. lenders, JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC) reported last Friday. Bank of America said its first-quarter net income increased by 15% to $8.2 billion, or 94 cents a share, from $7.1 billion beating the analyst forecast of 81 cents a share, according to estimates compiled by FactSet. Bank of America said its revenue increased 13% to $26.3 … Continue reading “Bank of America Earnings Benefiting from Higher Interest Rates and Solid Loan Growth”

Wells Fargo Earnings Higher with Net Interest Income Up 45% on Higher Rates

Wells Fargo reported better than expected first quarter earnings before the bell Friday. Wells Fargo reported its net income rose by more than 30% to nearly $5 billion in the first quarter from a year ago as the bank benefited from higher interest rates, despite building up loan loss reserves $1.2 billion after reducing its provisions by $787 million a year ago. The bank said its net interest income increased 45% on the back of soaring interest rates and Revenue … Continue reading “Wells Fargo Earnings Higher with Net Interest Income Up 45% on Higher Rates”