Big banks beat wall street expectations

Higher interest rates were evidently in the favor of financials

By Nadia Elbilassy | @Nadia Elbilassy | 24 April 2023

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

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

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

MORGAN STANLEY

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

GOLDMAN SACHS

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

CREDIT SUISSE

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.