Banks continue to stream earnings reports this week as investors cautiously eye the results after March’s rout of bank stocks. Bank of America beat expectations with a big surprise earnings early Tuesday. Goldman Sachs posted mixed results while Bank of New York Mellon was in line with expectations. Morgan Stanley and US Bankcorp beat expectations on Wednesday.
JPMorgan (JPM), Wells Fargo (WFC) And Citigroup (c) last week with significant profits for major banks, driven by higher net interest income. However, analysts expect the decline in investment banking revenue to impact results.
resultsBank of America earnings jumped 17.5% to 94 cents a share, with revenue up 13.4% to $26.3 billion.
expectations: Analysts polled predict FactSet American bank (Buck) increased earnings 2 cents to 82 cents per share on revenue growth of 8.3% to $25.16 billion.
Average deposits decreased to $1.91 trillion, down from $1.93 trillion at the end of the year, and from $2.07 trillion in the first quarter of 2022, respectively.
Net interest income rose about 25% to $14.45 billion. Investment banking revenue fell 20% to $1.2 billion, but was slightly better than FactSet’s forecast of $1.02 billion.
prospectsFactSet analysts expect adjusted earnings to rise approximately 5% to $3.39 per share for fiscal year 2023 with revenue growing 5.2% to $99.845 billion.
BAC shares rose 0.6% to 30.55 on Tuesday, after gaining 2.1% in pre-market after results. The shares have collapsed 11.5% over the past three months. Bank of America stock is up more than 15% from its March low, but is still down 7.8% this year.
resultsEarnings: Goldman Sachs fell 18% to $8.79 per share on the back of revenue falling 5% to $12.22 billion.
expectations: Wall Street predicted Goldman Sachs (pEarnings declined for the fifth consecutive quarter, declining 24% to $8.14 per share, while revenue decreased 1.3% to $12.76 billion.
Investment banking revenue fell 26% to $1.58 billion, slightly more than the expected decline to $1.2 billion. Net interest income fell 3% during the year to $1.78 billion.
prospectsAnalysts expect Goldman Sachs’ full-year earnings to rise 7% to $32.26 per share on revenue growth of 4.2% to $49.39 billion.
GS stock fell 1.7% on Tuesday after earnings. The shares have dropped 6% from their price over the past three months and are down 4% so far this year.
Bank of New York Mellon
resultsBank of New York Mellon’s earnings rose 30% to $1.12 per share on revenue growing 11% to $4.36 billion.
Average bank deposits decreased to $274 billion, down 3% from the previous quarter and 13% from the first quarter of 2022. Net interest income increased by 62% during the year to $1.13 billion
expectationsBank of New York Mellon (BK) to report a 30% increase to $1.12 per share as revenue jumped 12% to $4.4 billion.
prospectsBank of New York Mellon earnings are expected to rise 68.6% to $4.89 per share on revenue growth of 8.3% to $17.74 billion.
BK shares rose 1.3% on Tuesday after falling early after results. Shares are down about 10% over the past three months and are down 1.5% in 2023.
resultsMorgan Stanley’s earnings fell 15.8% to $1.70 per share, while revenue fell 2% to $14.5 billion.
expectations: were Wall Street forecasts Morgan Stanley (MsEarnings fell 19.3% to $1.63 per share while revenue fell 5.6% to $13.97 billion.
Investment banking revenue fell 23.7% for the year to $1.25 billion, just above analyst estimates of $1.13 billion. Net interest income rose 6% to $2.35 billion. Deposits decreased to $347.52 billion, down 3% from the previous quarter and 4% from a year ago, respectively. Analysts expected deposits to rise for the second consecutive quarter.
prospects: FactSet expects Morgan Stanley’s dividend to rise 6% in fiscal 2023 to $6.75 per share. The consensus expects revenue to increase 4% to $55.87 billion.
MS stock fell 2.7% after preliminary results. Shares have stumbled 2.6% over the past three months but are up 5% this year.
resultsUS Bancorp’s earnings jumped 17% to $1.16 per share while revenue rose 28% to $7.175 billion.
expectations: saw Wall Street US Bancorp (USBEarnings rose 13% to $1.12 a share. The consensus sent revenue up 27.5% to $7.14 billion.
Average total deposits rose to $510.32 billion, up 5.9% from the end of the year and 12.3% from the first quarter of last year. Experts predicted that the average deposits would rise to $515 billion. Net interest income swelled 45% during the year to $4.67 billion.
prospectsAnalysts expect Bancorp US fiscal 2023 earnings to rise approximately 29% to $4.75 per share. Revenue is expected to increase by 20% to $29.23 billion.
USB stock rose above the pre-market post-market results. Shares are down about 25% over the past three months and are down 18.4% this year.
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