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%”
PNC Bank Earnings Hurt by Fall in Fee Income and Higher Credit Loss Provisions
PNC Financial reported worse than expected fourth quarter earnings before the market Wednesday along after JPM, Wells Fargo, Wells Fargo, Bank of America, Goldman Sachs and Citigroup all reported earlier. Non-interest income fell 8.2% year over year to $2.08 billion due to falling fee income components, except for card and cash management fees, and lending and deposit services fees. PNC reported provision for credit losses of $408 million in the fourth quarter and net loan charge-offs were $224 million, up … Continue reading “PNC Bank Earnings Hurt by Fall in Fee Income and Higher Credit Loss Provisions”
JPMorgan Earnings Boosted by Higher Interest Rates but Sets Aside $2.29 billion for Loan Losses
JPMorgan Chase JPM, America’s largest bank kicked off the banking sector’s fourth quarter earnings season on Friday before the market opened. $JPM reported net income of $11 billion, or $3.57 per share, up from $10.4 billion, or $3.33 a share, a year ago, beating the $3.08 per share forecast by analysts. Chief Executive Jamie Dimon warned the bank was preparing for what it now expects to be a mild recession, setting aside another $1.4 billion for potential worsening loan losses. … Continue reading “JPMorgan Earnings Boosted by Higher Interest Rates but Sets Aside $2.29 billion for Loan Losses”
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 JPMorgan Earnings
JPMorgan Chase $JPM, America’s largest bank kick off the banking sector’s fourth quarter earnings season on Friday before the market opens along with three of the largest U.S. lenders, Wells Fargo (WFC), Citigroup (C) and Bank of America (BAC). With the equity and bond markets continuing to slide investment-banking fees are expected to be down sharply again. JPM is expected to add net interest income with the bank seen to have been more disciplined than others on deploying cash, and … Continue reading “What to Expect from JPMorgan Earnings”
Crypto Tokens are Like Pet Rocks says JPMorgan’s Jamie Dimon
In an interview Tuesday on CNBC JPMorgan CEO Jamie Dimon commented on cryptocurrencies and their delusion, as he has warned a number of times. He labelled them “decentralized Ponzi schemes” back in October. A clearly annoyed Dimon with the incompetency of CNBC and their ilk when asked on Crypto, who we should remind was mocked multiple times by crypto zealots and pay for play analysts like those on CNBC responded in kind. When asked about after the FTX mega or … Continue reading “Crypto Tokens are Like Pet Rocks says JPMorgan’s Jamie Dimon”
PNC Bank Earnings Higher with Widening Net Interest Margin
PNC Financial reported better than expected third quarter earnings before the market Friday along with JPM, Wells Fargo and Citigroup. $PNC saw net interest income grow 7% to $3.5 billion, driven by higher yields on interest-earning assets and loan growth, partially offset by higher funding costs. Noninterest income fell 11% to $2.07 billion on the back of the acquisition of BBVA USA and higher merger and acquisition advisory fees. PNC Financial Services Group Inc NYSE: PNC · Reported Before Open … Continue reading “PNC Bank Earnings Higher with Widening Net Interest Margin”
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”