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Big banks Q4 earnings review

The US banking giant’s shares drift lower this month after the last couple of weeks strong rally. The recent bearish sentiment is driven by the release of mixed fourth-quarter earnings results.

Big banks Q4 earnings review

The US banking giant’s shares drift lower this month after the last couple of weeks strong rally. The recent bearish sentiment is driven by the release of mixed fourth-quarter earnings results. Major 6 US Banks including JP Morgan Chase, Wells Fargo, Citibank, Morgan Stanley, Goldman Sachs, and Bank of America have reported their Q4 earnings in the last two weeks.

Let’s look at one by one,

  1. JPMorgan (NYSE: JPM)

Shares of JPMorgan Chase, the largest U.S. bank by assets fell more than 6% on January 14th after the company quarterly profit dropped 14%. Meanwhile, the bank reported better-than-expected Q4 earnings and revenue. The firm posted a 28% jump in investment banking revenue, but the overall trading revenue fell 13%.

  • Earnings per share: $3.33 vs. $3.03 expected

  • Revenue: $30.35 billion vs. $29.8 billion expected

"We remain optimistic on US economic growth as business sentiment is upbeat and consumers are benefiting from job and wage growth," – JPMorgan CEO, Jamie Dimon said.

  1. Citigroup (NYSE: C)

Citigroup announced its Q4 2021 financial results on Friday, January 14. The company reported net income for the fourth quarter of 2021 of $3.2 billion, which decreased 26% from the prior-year period. The stock fell more than 3% so far after the results.

  • Earnings per share: $1.46 vs. $1.64 expected

  • Revenue: $17.02 billion vs. $16.8 billion expected

"We had a decent end to 2021 driving net income for the year up to $22 billion in what was a far better credit environment than the previous year," Citi CEO, Jane Fraser said.

  1. Wells Fargo (NYSE: WFC)

Wells Fargo posted slightly better-than-expected Q4 earnings reports. $WFC reported revenue of $20.86 billion in Q4, up from $18.5 billion in the prior year’s quarter. The stock jumped initially after the release of earnings but failed to keep the upside momentum and it gave back the early gains.

  • Earnings per share: $1.38 vs. $1.12 expected

  • Revenue: $20.86 billion vs. $18.80 billion expected

“The changes we’ve made to the company and continued strong economic growth prospects make us feel good about how we are positioned entering 2022,” – Wells Fargo CEO, Charlie Scharf said.

  1. Goldman Sachs (NYSE: GS)

Goldman Sachs announced the company’s earnings for the fourth quarter of 2021 on 18 January 2022, before trading hours. Shares of Goldman Sachs slide almost 7% after the company said its fourth-quarter profits fell by 13% from a year earlier.

  • Earnings per share: $10.81 vs. $11.76 expected

  • Revenue: $12.64 billion vs. $12.08 billion expected

“2021 was a record year for Goldman Sachs. The firm’s extraordinary performance is a testament to the strength of our client franchise and people," $GS CEO, David Solomon said.

  1. Bank of America (NYSE: BAC)

The second-largest U.S. bank, Bank of America reported the fourth-quarter financial results on 19 January. The bank beat Wall Street’s expectations on earnings but missed revenue expectations. The bank Q4 profit increased by 30% and the revenue rose 10% to $22.17 billion.

  • Earnings per share: $0.82 vs. $0.76 expected

  • Revenue: $22.17 billion vs. $22.2 billion expected

“2021 started with US$50 billion in record loan growth this quarter, we note these borrowers, both consumer and commercial, have strong capacity to continue to borrow, “- BAC CEO, Brian Moynihan said.

  1. Morgan Stanley (NYSE: MS)

Morgan Stanley reported better-than-expected Q4 earnings results on 19 Jan. $MS revenue rose to $14.52 billion for the quarter compared with $13.59 billion in the year-ago period. Shares of Morgan Stanley closed 1.8% higher on Wednesday following the release of the quarterly figures.

  • Earnings per share: $2.01 vs. $1.91 expected

  • Revenue: $14.52 billion vs. $14.6 billion expected

“We have a sustainable business model with scale, capital flexibility, momentum and growth," - $MS CEO, James Gorman said.

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