Major US Banks Top Q1 Earnings Estimates As High Interest Rates Offer Tailwinds: 'Indicators Continue To Be Favorable,' Jamie Dimon Says

Zinger Key Points
  • JPMorgan Chase & Co. beats Q1 estimates with $4.44 EPS and $42.55B revenue, showcasing resilience in loans and deposits.
  • JPMorgan shares drop 3% premarket, while Citigroup rises 1.6% and BlackRock gains 0.7%.

Five prominent U.S. financial institutions unveiled their first-quarter financial performance on Friday, surpassing consensus forecasts for both earnings and revenue, highlighting the favorable climate for banks amid heightened interest rates and a robust economy.

Here’s a summary of the results sourced from the Benzinga Pro platform:

BankQ1 2024 EPSEPS SurpriseQ1 2024 RevenueRevenue Surprise
JPMorgan Chase & Co. JPM4.446.99%$42.548B1.7%
Wells Fargo & Co1.2010.09%$20.863B$3.27%
BlackRock Inc.9.815.26%$4.728B1.12%
Citigroup Inc. 1.5831.7%$21.104B3.49%

JPMorgan Chase & Co.: Q1 2024 Earnings Highlight

JPMorgan Chase & Co.’s first-quarter 2024 earnings revealed an EPS of $4.44, outpacing estimates of $4.17. Adjusted revenue stood at $42.55 billion, surpassing the estimated $41.64 billion mark.

Despite loans slightly below estimates at $1.31 trillion compared to the expected $1.33 trillion, the bank demonstrated resilience with a provision for credit losses of $1.88 billion, lower than the estimated $2.78 billion.

Total deposits reached $2.43 trillion, exceeding the projected $2.4 trillion, while cash and due from banks were reported at $22.75 billion, below the estimated $28.97 billion.

JPMorgan remains optimistic about its fiscal year net interest income, maintaining an outlook of about $90 billion, slightly below the estimated $90.72 billion.

Equities sales and trading revenue hit $2.69 billion, while FICC sales and trading revenue reached $5.30 billion. Managed net interest income amounted to $23.20 billion, slightly below the estimated $23.22 billion.

Jamie Dimon, Chairman and CEO of JPMorgan Chase & Co., expressed confidence in the bank’s performance, stating, “We reported strong results in the first quarter. This quarter, we grew customers, continued to position the firm for the future, maintained our fortress principles, raised the dividend, and played a critical role in driving economic growth by extending credit and raising capital totaling more than $655 billion.”

“Many economic indicators continue to be favorable,” Dimon said. However, he also acknowledged prevailing uncertainties, citing global conflicts and rising geopolitical tensions. He also noted the presence of persistent inflationary pressures, signaling potential challenges ahead.

Shares of JPMorgan Chase & Co. traded 3% lower during the premarket trading session on Friday.

Also Read: What’s Going On With Wells Fargo Shares After Beating Q1 Earnings?

Citigroup Inc.: Q1 2024 Earnings Highlight

Citi’s first-quarter 2024 earnings report unveiled an EPS of $1.58, surpassing expectations set at $1.23. Revenue reached $21.10 billion, outperforming the estimated $20.38 billion. FICC sales and trading revenue stood at $4.15 billion, slightly exceeding the estimated $4.12 billion mark, while equities sales and trading revenue amounted to $1.23 billion, surpassing the anticipated $1.11 billion.

Net interest income totaled $13.51 billion, while total loans reached $674.68 billion, slightly below the estimated $688.44 billion. Investment banking revenue was reported at $903 million, surpassing the estimated $776.9 million.

Operating expenses amounted to $14.20 billion, while the total cost of credit was $2.37 billion, lower than the estimated $2.64 billion.

Looking ahead, Citi maintains its fiscal year adjusted revenue outlook of about $80 billion to $81 billion.

CEO Jane Fraser highlighted the impressive performance of U.S. Personal Banking, which achieved double-digit revenue growth for the sixth consecutive quarter.

Shares of Citigroup Inc rose 1.6% in the premarket.

BlackRock Inc.: Q1 2024 Earnings Highlight

BlackRock’s first-quarter 2024 earnings revealed an adjusted EPS of $9.81, exceeding the estimated $9.34. Revenue amounted to $4.73 billion, slightly surpassing the estimated $4.68 billion mark.

Assets under management (AUM) reached $10.47 trillion, exceeding the estimated $10.43 trillion.

Equity net inflows were reported at $18.42 billion, below the estimated $27.79 billion, while fixed income net inflows stood at $41.74 billion, surpassing the estimated $29.33 billion.

Base fees and securities lending revenue totaled $3.78 billion, slightly below the estimated $3.82 billion.

“Clients are turning to BlackRock to unlock the full potential of their portfolios, reflected in industry-leading total net inflows of $236 billion over the last 12 months,” said Larry Fink, chairman and CEO of BlackRock. “We see significant growth potential in infrastructure, technology, retirement, and whole portfolio solutions, with a strong pipeline that has some of the best breadth that we’ve ever seen.”

Shares of BlackRock Inc. inched 0.7% higher in the premarket session.

Read now: Wall Street Wobbles: Stock Futures Point To Slide As JPMorgan Tumbles 3% While Gold Surges Past $2,400 — Analyst Sees This As ‘Worst-Case’ Scenario For S&P 500 Pullback

Photo: Shutterstock

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