Earnings season for monetary providers formally kicked off this morning, with three of the highest 4 banks reporting earnings.
Let’s have a look at JPMorgan first. By most measures, they crushed it. The nation’s largest financial institution reported $13.42 billion in revenue on $41.93 billion in income – that’s for the primary quarter people, not a yr. Did anybody ever let you know that banking is extremely worthwhile?
Wells Fargo additionally reported stable earnings. Revenue declined somewhat however it was nonetheless $4.62 billion on income of $20.86 billion. Each earnings and income had been above Wall Road analysts’ expectations.
Citi additionally topped analysts’ estimates with $3.37 billion in revenue on income of $21.10 billion, however each these numbers had been down from the identical interval final yr.
One of many themes throughout the three earnings stories was the influence of upper rates of interest. Now that charges have been excessive for some time, customers are transferring cash away from accounts that pay little curiosity into higher-yielding CDs or financial savings accounts.
This has a direct influence on the vital metric of Web Curiosity Revenue (NII). Banks anticipate NII to stay flat or decline for the remainder of 2024.
Financial institution of America stories on Tuesday.
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