Contrasting start for the US stock market as the banking earnings season continues, with the Dow Jones losing half a percentage point and the S&P500 and the Nasdaq trading above par. On Wall Street, traders are evaluating the results quarterly reports of major US banks. The actions of Goldman Sachs They jumped more than 3% in the pre-market and are up 1% during the trading session after reporting better-than-expected results.
Shares of also rose sharply Bank of America and Citigroup, which gained 2,69% and 1,8% respectively, after their profits, although falling, still beat analysts' expectations.
Goldman Sachs Quarterly
In the third quarter of 2024, the Goldman Sachs earnings jump 45% at $2,99 billion, or $8,40 per share, compared to $2,06 billion, or $5,47 per share, in the same period a year earlier. Net revenues stood at 12,70 billion of dollars, above analysts' estimates of $11,8 billion. Net revenues for the nine months were $39,64 billion and net income was $10,17 billion.
Returning to the quarter, investment banking commissions Goldman’s operating income rose 20% to $1,87 billion as revenue from fixed income, currency and commodity trading fell 12% and equity trading rose 18%. The bank made provisions for loan losses of $397 million, up from $7 million a year ago.
“Our performance demonstrates the strength of our world-class franchise in an improving operating environment,” commented CEO David Solomon – We continue to build on our strengths – exceptional talent, execution and risk management expertise – to effectively serve our clients in a complex environment and deliver results for shareholders.”
Bank of America (BofA) Quarterly
In the third quarter, Bank of America reported a net income of $6,9 billion, or $0,81 per share (diluted earnings), down from $7,8 billion, or $0,90 per share, in the same period of 2023. Although down, the result was above analysts' expectations. The revenues, net of interest expense, stood at 25,3 billion dollars (against 25,5 billion dollars). net interest margin (NII) was $14 billion ($14,1 billion).
Chairman and CEO Brian Moynihan said: “We delivered solid earnings, driven by better-than-average lending and our fifth consecutive quarter of sequential average deposit growth. Net interest margin improved from the second quarter, benefiting from double-digit growth in investment banking and asset management, as well as trading and sales revenues.”
The institute highlighted that the fundamentals are strong, with a Cet1 ratio at 11,8%, 1,12% above the minimum required by the regulation that came into force at the beginning of October.
Citigroup's quarterly
From June to September Citigroup profits fell, but still exceeded analysts' estimates, with the increase in the cost of credit (+45% to 2,67 billion) offset by growth in revenues and the reduction in operating expenses (-2% to 13,25 billion).
In numbers, in the third quarter, the New York bank recorded net profits of 3,23 billion of dollars, $1,51 per share, compared to $3,54 billion, $1,63 per share, in the same period last year, but above the $1,31 per share expected by analysts.
Revenue increased 1% to $20,315 billion, again better than the consensus forecast of $19,84 billion. Excluding the impact of some divestments, with a gain of about $400 million from the sale of its Taiwan consumer banking business in the previous period, revenues rose 3%.
“In a pivotal year, there were several elements in the quarter that prove we are moving in the right direction and that our strategy is gaining traction, with positive operating leverage for each of our businesses and growth in fees,” said CEO Jane Fraser, stressing that “while we continue to make substantial investments in transformation, which is our priority, the efficiencies achieved through simplification have led to a 2% reduction in expenses”.
In the quarter, book value increased 3% to $101,91 per share, the report Cet1 was at 13,7%, versus 13,6% in the previous three months and the same period last year. The return on capital was 6,2%, versus 6,3% in the previous three months and 6,7% in the same period last year.
