Sunny day for the giants of Wall Street. Three of the most powerful financial giants made in the USA – JP Morgan, Citigroup and Wells Fargo – today, Friday 14 July, published their balance sheet numbers for the second quarter of the year. Results are positive across the board, with all three institutions posting net results that exceeded analysts' forecasts.
JPMORGAN: PROFIT +13%, ABOVE EXPECTATIONS
In detail, JP Morgan recorded a net profit of 7,029 billion dollars in the second quarter, with an increase of 13% compared to the corresponding period of 2016 and up 9% compared to the first quarter of this year. The net earnings per share - specifies the group - improved by 17%, to 1,82 dollars. The results beat analyst forecasts.
Net revenues increased 5% to $26,4 billion, while net interest income increased 8% to $12,5 billion, driven by the impact of rising rates and rising interest rates. loans. The other sources of revenues rose by 2%, to 13,9 billion, receiving a benefit of 645 million related to a settlement on a legal dispute.
Group chairman and CEO Jamie Dimon described the quarter's results as "very solid", announcing plans to step up capital return plans while continuing to invest in the business to achieve long-term profitability.
CITIGROUP: PROFIT -3%, BUT ABOVE ESTIMATIONS
The situation was different at Citigroup, which in the second quarter saw profits fall by 3% in the wake of the slowdown in trading activities, which were affected by the lower volatility of the stock and bond markets. The Bank of New York reported net income of $3,872 billion, or $1,28 per share, compared with $3,998 billion for the same period last year. However, the result is much higher than expected, considering that analysts had forecast that the profit would stop at 1,21 dollars per share.
As for turnover, it rose from 17,548 billion to 17,901 billion, again better than the 17,367 billion expected by analysts.
"We are clearly on the right track to increase both the return on capital and the return of capital to investors," commented JP Morgan Chief Executive Officer Michael Corbat.
WELLS FARGO ALSO BEATS FORECASTS: PROFIT +5%
Finally, Wells Fargo. In the second quarter, the third largest US bank by assets saw its profit rise by 5%, beating analysts' forecasts. In the three months to June, the San Francisco-based lender reported profits of $5,81 billion ($1,07 per share), up from $5,558 billion ($1,01 per share) in the same period last year. . Analysts had estimated earnings per share of $1,01.
Net income applicable to common stock rose 4% to $5,404 billion. Operating income remained broadly unchanged at $22,169 billion, but below the $22,5 billion consensus forecast. Average deposits rose by 64,5 billion to 1.300 billion (+5%), while total average loans rose by 1%, 6,1 billion, to 956,9 billion.
