After the positive debut of Citigroup, which opened the quarterly session of Wall Street on Monday, positive accounts also arrive from three other financial giants on Tuesday made in the USA: JP Morgan, Goldman Sachs and Wells Fargo. All three archived the April-June period with numbers higher than those expected by analysts on average.
JP MORGAN
Notably, JP Morgan reported 16% year-over-year net income growth to $9,65 billion, or $2,82 per share, up 23% from a year ago and above consensus of analysts, which did not go beyond 2,50 dollars. Turnover instead reached 29,56 billion, an increase of 4%.
“We recorded a solid second quarter and first half that benefited from our diversified business model – commented the chairman and CEO Jamie Dimon – We continue to see positive momentum for American consumers (thanks to a positive level of confidence, a strong job creation and rising wages) which were reflected in the results of our Consumer & Community Banking division”.
The manager underlined the double-digit increase in credit card sales and transaction volumes translated into a positive trend in consumer spending and +8% in card loans. On the other hand, the performance of Corporate&Investment banking was down due to greater macroeconomic and geopolitical uncertainties: the division reported profits of 2,935 billion, down 8%, on revenues of 9,64 billion (-3%).
GOLDMAN SACHS
Also in the second quarter, Goldman Sachs made earnings of $2,4 billion, up 6% from the same period last year. In any case, earnings per share came in at $5,81, well above the $5,03 expected by analyst consensus. Revenues were also higher than expected, amounting to 9,46 billion (-2% from 30 June 2018) against the estimated 8,88. Annualized Roe was 11,1%. The Board also confirmed the decision to raise the quarterly dividend to 1,25 dollars per share from the previous 0,85 dollars, already communicated after the recent regulatory go-ahead, starting from the third quarter.
“We are encouraged by the results for the first half of the year, as we continue to invest in new business and growth to serve more customers – commented the CEO, David Solomon – Given the strength of our brand with customers, we are well positioned to benefit from the growth of the global economy. Furthermore, our financial strength puts us in a position to return capital to shareholders, even with a significant increase in the dividend in the third quarter”.
WELLS FARGO
As for Wells Fargo, the second quarter closed with a profit of 6,2 billion dollars, up 20% on an annual basis. Earnings per share were $1,3, versus $1,17 expected by analysts. Revenues reached 21,6 billion, substantially in line with last year and against the 20,8 billion expected by the market. The institute also recalls its intention, subject to the go-ahead from the board, to raise the quarterly dividend to $0,51 per share from $0,45.
“We posted solid earnings in the second quarter and continued to make progress in our priorities: focus on customers and employees, meet regulators' expectations, and continue the transformation of our company,” interim CEO Allen Parker commented. that all of our stakeholders will benefit from the changes we are implementing as we work to build the most customer-focused, efficient and innovative Wells Fargo ever.”
THE WALL STREET REACTION
After the publication of the accounts, the shares of JP Morgan opens on Wall Street by 0,2. Positive instead Goldman Sachs (+2,4) and Wells Fargo (+0,3%).
