Big banks beat wall street expectations
Higher interest rates were evidently in the favor of financials
Fears of the banking sectors health drove demand and deposit to transition into bigger banks
Credit Suisse saw significant outflows & Goldman Sachs disappointed
US banking heavyweights such as JPMorgan Chase, Citigroup Inc and Wells Fargo beat expectations despite earlier slowdown projects. The big banks were found generating higher revenue through higher borrowing costs for consumers.
And as Mid-sized banks collapse spiraled markets, investors resorted to bigger names in hope they would not default as well. Extending profit margins for the biggest banks, although they have put together conditions in place.
JPMorgan stock continues to be in the green following the earnings report despite the widely anticipated recession that remains a key market mover on low sentiment days. The bank rose 52% in profit and from lending 49%.
Revenue added 38.3B vs 36.1B in forecast
EPS rose 4.1 vs 3.41 in forecast
Citigroup saw a distinct result in Asia and globally whereas Asia wealth revenue rose 20% which included insurance revenue, investment gains and new private banking clients. While Citi global saw a contraction of 9% in the wealth from a year ago.
Revenue added 21.4B vs 20.05B
EPS rose 1.86 vs 1.7
MS beat expectations as wealth management surged 11% but saw a decline in investment banking activity.
Revenue added 14.5B vs 14.03B
EPS rose 1.7 vs 1.67
GS was on the few big banks to miss expectations and see a profit decline. The net interest income also saw a large miss at 1.78B vs 2.18B. Seeing a dip in in its investment banking unit as well and a loss in asset sales.
Revenue missed 12.22B vs 12.83B
EPS rose 8.79 vs 8.24
Meanwhile Credit Suisse saw significant outflows in the first quarter as rumor had it and saw increased withdrawals at the first signs of trouble. Asset outflows accounted for CHF 67B in the first quarter of this year.
BANK OF AMERICA
BOFA beat expectations saying that every business segment performed well, outshining other banks in terms of stability.
Revenue added 26.3B vs 25.25B in forecast
EPS rose 0.94 vs 0.81
Whilst all the banks increased their credit loss or loan loss reserves such as;
-Citigroup adding $241 million vs $138 million last year
-Wells Fargo adding $1.21 billion vs $787 million last year
Buckle up, earnings season is here don't forget your popcorn!