Last week wall street celebrated blowout earnings results from the six American, investment banks including Goldman Sachs, JP Morgan, Bank of America, Wells Fargo, Citigroup, and Morgan Stanley. Most surprisingly all the big banks reported better-than-expected Q1 financial results. Let’s go through it in detail.
Goldman Sachs (NYSE: GS)
Goldman Sachs had a killer quarter, the last quarter revenues more than doubled to $17.7 billion. $GS shares rose more than 4% following the release of strong financail results.
Earnings per share: 18.60 vs. 18.22 expected
Revenue: $17.7 billion vs. $12.6 billion expected
“We think we’re going to have very robust economic growth in the second half of 2021 and into 2022,”– $GS, CEO, David Solomon said.
JP Morgan (NYSE: JPM)
JP Morgan reported better-than-expected first-quarter financial results. The U.S. bank revenue increased by 14% to US$33.1 billion. While compare to Goldman Sachs shares the JP Morgan stock closed slightly lower on Wednesday despite the strong financial results.
Earnings per share: $4.5 vs. $3.10 expected
Revenue: $33.12 billion vs. $30.52 billion expected
"We expect the recovery to be robust in the second half of the year," - JPM CFO, Jennifer Piepszak said.
Wells Fargo (NYSE: WFC)
The biggest U.S. mortgage lender reported first-quarter earnings on Wednesday, April 14th. Wells Fargo shares rose more than 5% on Wednesday after the positive results and the stock increased 32% since the beginning of the year.
Earnings per share: $1.05 vs. $0.70 expected
Revenue: $18.06 billion vs. $17.6 billion expected
"We want to continue to build out the corporate investment bank as we've been doing in a very linear way," $WFC CEO, Charles Scharf said.
Citigroup (NYSE: C)
Citigroup Q1 results beat Wall Street expectations. While the stock ended lower on Thursday after the bank said it was shutting down most of its consumer-banking operations in Asia, Europe, and the Middle East.
Earnings per share: $3.62 vs. $2.56 expected
Revenue: $19.33 billion vs. $18.8 billion expected
"It's been a better-than-expected start to the year, and we are optimistic about the macro environment," Citi CEO, Jane Fraser said.
Bank of America (NYSE: BAC)
Bank of America reported its first-quarter profits more than doubled to $8.1 billion, while revenues held flat at $22.9 billion. $BAC shares retreated from the high after weaker-than-expected net interest income and loan growth.
Earnings per share: $0.86 vs. $0.66 expected
Revenue: $22.9 billion vs. $22 billion expected
"While low-interest rates continued to challenge revenue, credit costs improved and we believe that progress in the health crisis and the economy point to an accelerating recovery,” BAC CEO, Brian Moynihan said.
Morgan Stanley (NYSE: MS)
Morgan Stanley was the last of the six biggest U.S. banks to report Q1 earnings. The investment bank reported net revenues of $15.7 billion for the first quarter compared with $9.8 billion a year ago. On Friday, $MS stock opened higher after the stronger-than-expected results, but the stock retreated lower later the session after it failed to break the previous week high.
Earnings per share: $2.22 vs. $1.70 expected
Revenue: $15.7 billion vs. $14.1 billion expected
“The Firm delivered record results. The Firm is very well positioned for growth in the years ahead.” – CEO, James P. Gorman said.
Sources: (Results - CNBC, Bloomberg and Reuters) (Chart - Tradingview.com)
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