Big Bank Roundup: These Stocks Kick Off Earnings Season With A Mixed Bag Of Results

Zinger Key Points
  • Interest income surged while investment banking revenues tumbled.
  • JPMorgan, Citigroup, US Bancorp, Morgan Stanley, PNC and Wells Fargo each announced earnings.
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Big U.S. bank stocks kicked off third-quarter earnings season on Friday with a mixed bag of numbers on a difficult day for the market.

Here's an overview of the highlights for JPMorgan Chase & Co JPM, Citigroup Inc. C, US Bancorp USBMorgan Stanley MSPNC Financial Services Group Inc. PNC and Wells Fargo & Co WFC.

  • JPM: The Jamie Dimon-led firm reported third-quarter adjusted EPS of $3.12 on revenue of $2.88. Both numbers exceeded consensus analysts of $2.88 and $32.1 billion, respectively. Revenue was up 10% compared to a year ago. The earnings beat was driven by a 34% year-over-year rise in net interest income. The New York-based company's shares traded higher by 2.7% following the report.
  • C: Under the helm of CEO Jane Fraser, Citigroup reported adjusted EPS of $1.50 on revenue of $18.5 billion. Both numbers exceeded analyst estimates of $1.42 and $18.2 billion, respectively. Revenue was up 6% from 2021. The New York-based bank's net income fell 25% year-over-year, driven partly by a $370 million net increase in loan loss reserves. Citigroup shares traded higher by 1.7% on Friday.
  • WFC: Reported adjusted EPS of 85 cents, missing consensus analyst estimates of $1.09. Quarterly revenue of $19.5 billion beat analyst expectations of $18.7 billion. Revenue was up 4% from a year ago. Wells Fargo, led by CEO Charles Scharf, attributed the earnings miss to a $784 million increase in loan loss reserves. The San Francisco-based bank's shares traded higher by 3.3% following the report.
  • MS: Reported third-quarter adjusted EPS of $1.53, beating consensus analyst estimates of $1.50. The New York-based bank, under CEO James Gorman, reported quarterly revenue of $12.9 billion, missing consensus estimates of $13.3 billion. Revenue was down 12% from a year ago. The company's overall growth numbers were dragged down by a 55% drop in investment banking revenue in the quarter. Morgan Stanley shares traded lower by 4.4% following the report.
  • PNC: The Pittsburgh-based bank reported adjusted EPS of $3.78 on revenue of $5.5 billion. Both numbers exceeded consensus analyst estimates of $3.69 and $5.4 billion, respectively. Revenue was up 8% from a year ago. Under CEO Bill Demchak, net interest income was up 14% in the quarter to $3.5 billion. PNC shares traded lower by 2.1% on Friday.
  • USB: The Minneapolis-based bank reported third-quarter adjusted EPS of $1.18 on $6.29 billion in revenue. Both numbers exceeded consensus estimates of $1.17 and $6.24 billion, respectively. Revenue was up 7.4% year-over-year. U.S. Bancorp, under CEO Andrew Cecere, also reported 13.5% average total loan growth and 5.9% average total deposit growth in the quarter. U.S. Bancorp shares traded higher by 3.9% on Friday.

See Also: Fed Minutes Warn Investors Interest Rates May Be Higher For Longer

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Posted In: EarningsNewsCitigroupJPMorgan ChaseMorgan StanleyPNC Financial Services Group Inc.USBWells Fargo
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