Earnings season for monetary providers formally kicked off this morning, with three of the highest 4 banks reporting earnings.
Let’s take 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 of us, not a 12 months. Did anybody ever inform you that banking is very worthwhile?
Wells Fargo additionally reported strong earnings. Revenue declined somewhat but it surely was nonetheless $4.62 billion on income of $20.86 billion. Each earnings and income have been above Wall Avenue analysts’ expectations.
Citi additionally topped analysts’ estimates with $3.37 billion in revenue on income of $21.10 billion, however each these numbers have been down from the identical interval final 12 months.
One of many themes throughout the three earnings experiences was the influence of upper rates of interest. Now that charges have been excessive for some time, shoppers 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 essential metric of Internet Curiosity Earnings (NII). Banks anticipate NII to stay flat or decline for the remainder of 2024.
Financial institution of America experiences on Tuesday.
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