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”

US Bancorp Earnings Benefitting from Rising Interest Rates and Loan Growth

Minneapolis-based U.S. Bancorp reported better than expected third quarter earnings on Friday before the market opened.  However, U.S. Bancorp’s profit fell 10.7% to $1.8 billion as it set aside more reserves for potential credit losses and booked more charges related to its planned acquisition of MUFG Union Bank. With rising interest rates and increased loan activity, the bank saw net interest income rise 20.6%. Average total loans grew 13.5% over the year, driven in part by more commercial loans. $USB … Continue reading “US Bancorp Earnings Benefitting from Rising Interest Rates and Loan Growth”

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”