Two of the three US banks that released their data today (January 14) ended the fourth quarter of 2019 with record profits. However, Wells Fargo acts as a counterpart, which closed the last three months of 2019 with profits more than halved.
Going into details, JP Morgan closed the best year on record for a US bank in history. Fourth-quarter earnings jumped 21% to $8,52 billion, $2,57 a share, bringing the record annual earnings of $36,4 billion, up 12% from 2018. The data beat the average estimate of analysts reported by Bloomberg who had expected earnings per share of $2,36.
Moving on to the other financial parameters, revenues up 9% at 26,11 billion, exceeding market expectations. On the stock exchange in 2019 the company's shares rose by 36%, while today the stock travels up by 2,36% at $ 140,56.
For the first quarter of 2020, JP Morgan announced that net interest income would fall to $14 billion, while expenses would rise to approximately $17 billion. “While we are dealing with a persistently high level of complex geopolitical issues, global growth has stabilised, albeit at a lower level, and the resolution of some commercial issues has helped support customer and market activity towards the end of the year,” he said Jamie Dimon, CEO of the bank.
2019 ended in the best way also for Citigroup which closed the last quarter of the year with profits up 15% to $4,98 billion (from $4,31 billion), or $2,15 per share (from $1,64). Contributing to the result are above all the higher revenues deriving from credit cards and trading activities, but also the lower taxes. Excluding the positive impact of a tax benefit, the bank reported earnings of $1,9 per share. Analysts had expected earnings of $1,84 a share, according to Refinitiv data.
Revenue climbed 7% to $18,38 billionbeating the consensus estimate of $17,90 billion in revenues. On Wall Street, Citigroup stock rose 2% to $82,27.
Closes the quarterly day Wells Fargo, whose earnings fell more than expected. In the final three months of last year, the US bank saw its profits fall 53% to $2,87 billion, or $0,60 a share, from $6,06 billion, or $1,21 a share , in the same period of the previous year. Quarterly sales were also down, from $21,58 billion to $19,86 billion. Expectations were for earnings per share of $1,12 on revenues of $20,14 billion. Weighing in were operating losses of $1,9 billion, which include about $1,5 billion, or $0,33 a share, in provisions related to a "series of disputes."
Il Wells Fargo title it is in deep red: -3,3% to 50,4 dollars.
