Citi and JPMorgan surpass Wall Street estimates

The banking sector faced its most challenging year in 2023, since the 2008 financial crisis.

By Nadia Elbilassy | @Nadia Elbilassy | 12 January 2024

Market close
  • Citigroup (C) shares surged over 2% in premarket trading, exceeding analyst consensus estimates.

  • JPMorgan reported better-than-expected Q4 earnings, with earnings per share (EPS) at $3.97, surpassing the estimate of $3.49.

  • Bank of America experienced a 3.5% drop in premarket trading after reporting Q4 profits that were impacted by $2.1 billion in charges.

On the Market Watch!

Big bank earnings

Today's big bank earnings report fell short of expectations, although this was somewhat expected according to the projections last year and after the banking sector collapse earlier on in 2023. Bank of America fell 3.5% in premarket trading after the release of the Q4 profit which fell as the bank incurred $2.1 billion in combined charges, attributed to phasing out a loan index and replenishing the FDIC's deposit insurance fund, which was depleted due to the collapse of some regional lenders last year.

The second-largest U.S. lender reported a net income of $3.1 billion, or 35 cents per share, for the quarter ending on December 31. In comparison, the same period the previous year recorded a net income of $7.1 billion, or 85 cents per share. Indicating quite the drop from a year earlier.

The bank also projected the net interest income to drop further throughout the first half od the year and growth in the second.

Meanwhile, Citigroup (C) shares surged over 2% in premarket trading on Friday following the release of its latest quarterly results, where the company exceeded the analyst consensus estimate.

JPMorgan also reported better Q4 earnings with EPS at $3.97 better than $3.49 whilst Revenue came at $39.9 billion above the consensus estimate of $39.71B.

The 3 major indices edged lower after, the S&P 500 hovered around 4,767, the Nasdaq near 16,764 whilst the Dow Jones fell to 37,533.