What to Expect in BlackRock Earnings as Assets Under Management Decline

BlackRock the world’s largest investment management company report third quarter earnings on Thursday. BLK reported weaker than expected second quarter earnings last quarter with the stock market falling out of bed. The bearishness in the markets lowered the firm’s assets under management by 15% from $10 trillion at the end of December 2021 to $8.5 trillion at the end of Q2 2022. Look for the same trend to continue in the third quarter. Performance fees from the firm’s actively managed … Continue reading “What to Expect in BlackRock Earnings as Assets Under Management Decline”

JPMorgan Earnings Expected to Benefit from Higher Interest Rates

JPMorgan Chase $JPM, America’s largest bank kick off the banking sector’s third quarter earnings season on Friday before the market opens.  With the equity and bond markets continuing to slide investment-banking fees are expected to be down sharply again, much like competitor Morgan Stanley had also reported as capital markets seized up. However, JPM is expected to add net interest income with the bank seen to have been more disciplined than others on deploying cash, and now has the opportunity … Continue reading “JPMorgan Earnings Expected to Benefit from Higher Interest Rates”

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.”

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”

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”

Citigroup Earnings Affected by Higher Credit and Russian Exit Costs

Citigroup (NYSE:C) first quarter earnings topped analysts’ estimates even though they saw a 46% drop in profit. C is in the process of exiting its consumer banking business in 13 markets which got complicated with the Russian invasion of the Ukraine. Reporting also this week were JPMorgan Chase (JPM) Goldman Sachs (GS), PNC Bank (PNC), Morgan Stanley MS and Wells Fargo (WFC) along with BlackRock (BLK). The earnings come after U.S. Treasuries ended Wednesday higher for the second consecutive day of solid … Continue reading “Citigroup Earnings Affected by Higher Credit and Russian Exit Costs”

JPMorgan Sets Aside $900 million To Prepare for Economic Turmoil

JPMorgan Chase kicked off first quarter earnings with a profit of $8.28 billion in the first quarter, down from $14.3 billion a year ago. Revenue fell 5% to $30.72 billion, ahead of analyst expectations for $30.59 billion, according to FactSet. $JPM shares fell 3.2% to $127.30 after the release with the stock now down about 20% this year, while the S&P 500 is down 7%. JPMorgan took total credit charges of $1.5 billion. Of the $900 million set aside for … Continue reading “JPMorgan Sets Aside $900 million To Prepare for Economic Turmoil”