Federal Reserve Hypotheticals For 2023 Bank Stress Tests have Unemployment at 10%

The Federal Reserve on Thursday released the hypothetical scenarios for its annual bank stress tests. This year, 23 banks will be tested against a severe global recession with heightened stress in both commercial and residential real estate markets, as well as in corporate debt markets. Last year the Fed found 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. These test results will be keenly … Continue reading “Federal Reserve Hypotheticals For 2023 Bank Stress Tests have Unemployment at 10%”

Citigroup Record Fixed Income Sales & Trading Revenue Cushion Earnings

Citigroup reported Beter than expected fourth quarter earnings Friday before the market open along with three of the largest U.S. lenders, JPMorgan Chase (JPM), Wells Fargo (WFC) and Bank of America (BAC). Citigroup profit fell by 21% in the fourth quarter of 2022, and like JPMorgan set aside more money for credit losses preparing for a weaker economic backdrop. On the positive side fixed income trading posted record fourth-quarter revenue. $C again saw strong gains from US personal banking with … Continue reading “Citigroup Record Fixed Income Sales & Trading Revenue Cushion Earnings”

Big Banks Kick Off Fourth Quarter Earnings Season with Citigroup, JPMorgan, Bank of America and Wells Fargo

America’s big money center banks kick of fourth quarter earnings this week. FactSet expects the ‘Big 7’ to post $28 billion in fourth-quarter profits, which is down 15% from a year earlier. JPMorgan Chase (JPM), Citigroup (C) and Bank of America (BAC). and Wells Fargo (WFC) reporting Q4 results on Friday. Goldman Sachs (GS) and Morgan Stanley (MS) will report next Tuesday January 17 and PNC Financial Services Group, Inc. (PNC) and Charles Schwab Corp (SCHW) on January 18. Truist … Continue reading “Big Banks Kick Off Fourth Quarter Earnings Season with Citigroup, JPMorgan, Bank of America and Wells Fargo”

What to Expect from Citigroup Earnings

Citigroup report fourth quarter earnings Friday before the market open along with three of the largest U.S. lenders, JPMorgan Chase (JPM), Wells Fargo (WFC) and Bank of America (BAC). Last quarter Citi saw strong gains came from US personal banking with double digit revenue growth in both of cards businesses. Citigroup is halfway through its strategic transformation under Jane Fraser and the market will be looking for progress reports. Citigroup Earnings Preview Q4 2022 earnings release at 8:00 a.m. ET; … Continue reading “What to Expect from Citigroup Earnings”

JPMorgan Benefitting from Fed Rate Hikes with Record Quarterly Net Interest Income

JPMorgan Chase, America’s largest bank kicked off the banking sector’s third quarter earnings season on Friday before the market opened. Federal Reserve’s interest-rate hikes helped $JPM report its highest quarterly net interest income ever. The bank raised its guidance for the year on consumer strength though the bank recognized a $959 million net investment securities loss, which “reflected higher net losses on sales of U.S. Treasuries and mortgage-backed securities”. Investment-banking fees were down sharply again as expected. JPM added net interest … Continue reading “JPMorgan Benefitting from Fed Rate Hikes with Record Quarterly Net Interest Income”

Wells Fargo Earnings Again Hit by Regulatory Charges with Another $2 Billion in Fines

Wells Fargo reported better than third quarter earnings before the bell Friday, other than an additional $2 billion to resolve a variety of legacy regulatory and legal woes from the costly fallout from scandals. Wells Fargo set aside $784 million in provisions for potential credit losses, more than the $611 million analysts had expected. Reporting also this week were JPMorgan Chase (JPM) PNC Bank (PNC), Morgan Stanley MS and Citibank (C) along with BlackRock (BLK). Wells Fargo Q3 Earnings Q3 … Continue reading “Wells Fargo Earnings Again Hit by Regulatory Charges with Another $2 Billion in Fines”

Citigroup Earnings Boosted by Inflation Spiked Credit Card Revenue

Citigroup ($C) reported stronger than expected third quarter earnings Friday before the market opened. The gains came from US personal banking with double digit revenue growth in both of our cards businesses CEO Jane Fraser said. Second quarter earnings topped analysts’ estimates even though they saw a 46% drop in profit. Citi saw revenue drop in investment banking 46%, mirroring declines seen at JPMorgan Chase and Morgan Stanley releases yesterday. Citigroup’s shares are down 33% year-to-date and are down 41% … Continue reading “Citigroup Earnings Boosted by Inflation Spiked Credit Card Revenue”

BlackRock Earnings Cushioned by ETF Products as Assets Under Management Fall 16% To 2020 Levels

BlackRock the world’s largest investment management company reported third quarter earnings on Thursday that fell less than expected. BLK’s assets under management declined 16% in the third quarter, with the stock market falling out of bed. The bearishness in the markets lowered the firm’s assets under management from $10 trillion at the end of December 2021 to $7.96 trillion as of Sept. 30, the lowest since 2020. Blackrock Earnings Q3 2022 earnings released at 6:15 a.m. ET; conference call at … Continue reading “BlackRock Earnings Cushioned by ETF Products as Assets Under Management Fall 16% To 2020 Levels”

Citigroup Earnings Outlook with AOCI Hits from Rising Rates

Citigroup ($C) third quarter earnings are due Friday before the market open. Second quarter earnings topped analysts’ estimates even though they saw a 46% drop in profit. Citi saw revenue drop in investment banking 46%, mirroring declines seen at JPMorgan Chase and Morgan Stanley releases yesterday. Citigroup’s shares are down 33% year-to-date and are down 41% over the last 5-years with a forward P/E of just 5.8. $C pays the largest dividend of money center banks with a yield of … Continue reading “Citigroup Earnings Outlook with AOCI Hits from Rising Rates”

What to Look for in Wells Fargo Earnings as Credit Loss Risk Grows

Wells Fargo report third quarter earnings before the bell Friday, last quarter $WFC earnings came in lower than expected with many of America’s largest money center banks. Analysts will be watching credit risk updates after the banks sharp drop in profits flowed from boosting its provision for credit losses by $580 million in the second quarter. Morgan Stanley recommends leaning into Wells Fargo along with M&T Bank (MTB), Regions Financial (RF) and First Republic Bank (FRC). Wells Fargo reminds us … Continue reading “What to Look for in Wells Fargo Earnings as Credit Loss Risk Grows”