It’s time for quarterly in USAwhere the season, as per tradition, was inaugurated by some banking industry heavyweights. Among the first to release their second-quarter results are names such as Jp Morgan, Citigroup and mortgage giant Well Fargo. At the beginning of next week it will be the turn of Goldman Sachs, BlackRock, Bank of America and Morgan Stanley. But how did the first results go?
Jp Morgan soars with Visa contribution
J.P. Morgan Chasethe largest US bank with $3.5 trillion in assets under management, surprised analysts positively with better results than expectedThe second quarter closed with a significant increase in profits at 18.15 billion of dollars, equal to $6.12 per shareup 25% from $14.47 billion, ($4.75 per share), in the same period a year earlier. Adjusted earnings were $4.40 per share. Analysts had been significantly lower in their estimates for EPS of $4.19.
A result achieved thanks to the solid performance of investment banking and an accounting capital gain of 8 billion dollars linked to a share exchange with Visa.
THE revenues have reached the $50.2 billionup 22% from $41.3 billion in the same quarter last year and versus the consensus estimate of $42.3 billion.
Citigroup held back by cost view
Beats expectations too Citigroupwhich closes the second quarter with a Net profit up 10% to 3.2 billion of dollars, equal to $1.52 per sharewhich exceeds the 1.39 USD estimated by analysts.
THE revenues rose by 4% to 20.1 billion of dollars, beating the consensus of 20.07 billion. Revenues from the investment banking division rose 60%.
Despite strong results, Citigroup did not fare well on Wall Street, after the bank warned that this year could see costs increase around 53.5.53.8 billion.
Wells Fargo Priced Out Rate Impact on Funding
Wells Fargo, the mortgage giant and third largest US bank tied with Citigroup with 1.7 trillion in assets under management, closed its second quarter accounts with a Profit down 1% to 4.91 billion of dollars. EPS stood at $1.33beating market expectations by 4 cents.
THE revenues are overall up 1% at 20.7 billionexceeding the consensus of 20.3 billion, but the bank specializing in loans for the real estate market, recorded a decrease in interest margin of 9% to 11.92 billion, disappointing expectations (12.12 billion). A decrease attributable to the higher passive interests paid by the bank to finance itself.
Expectations for next week
The numbers of other big US companies will also arrive at the beginning of next week. Goldman-Sachs a is expected EPS of $8.57up 178% from $3.08 a year earlier, a period that reflected broad market volatility and generalized weakness in equities.
For Bank of America awaits a EPS of $0.79 per share, which shows a 10% decrease on the year, while revenues are expected to reach 25.24 billion dollars, substantially flat (+0.2%) compared to the same quarter of the previous year.
As for Morgan Stanleyshould report a earnings per share of $1.63up 31.5% from $1.24 a share a year ago. The company has consistently beaten Wall Street’s EPS estimates over the past four quarters.
