Shell, Europe’s largest oil company on Monday said it will “evaluate” its plan to spend as much as £25B on its U.K. operations over the next decade in response to British government’s decision to increase a windfall tax on oil and gas producers, David Bunch, chairman of the company’s U.K. business said. The tax, known as the Energy Profits Levy (EPL), will raise the total taxes on the energy sector to 75%, among the highest in the world. It nevertheless … Continue reading “Shell Will Evaluate British Energy Investments after Windfall Tax Brings Total Taxes to 75%”
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”
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”