Coffee With Greta: Big Bank Earnings
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Good morning friends!
Futures are mixed as Q3 earnings season kicks off with the big banks.
Let’s get right to it!
Chase Rises After Q3 Results
JPMorgan Chase (JPM) shares are up 0.8% ahead of the open after reporting higher profits in the third quarter.
Here’s how the largest U.S. bank’s results compared to analysts’ estimates:
- EPS: $4.33 vs $3.92 expected
- Revenue: $40.69 billion vs $39.63 billion expected
Profits surged 35% year over year while revenue climbed 21%.
Net interest income jumped 30%, topping expectations by about $600 million.
Chase CEO Jamie Dimon said U.S. consumers and businesses “generally remain healthy, although consumers are spending down their excess cash buffers.”
Dimon warned that plus tight labor markets and “extremely high government debt levels” may push interest rates even higher.
Citigroup Tops Q3 Estimates
Citigroup (C) shares are rising 2.6% in premarket trade after beating Q3 expectations on the top and bottom line.
Here’s how the investment bank’s results compared to analysts’ estimates:
- EPS: $1.63 vs $1.23 expected
- Revenue: $20.1 billion vs $19.3 billion expected
Revenue was up 9% year over year and profits rose 2%.
Citigroup’s institutional clients reported $10.6 billion in revenue, up 12% from a year ago and 2% from Q2.
Personal banking and wealth management revenue jumped 10% year over year and 6% from Q2 to $6.8 billion.
Wells Fargo Rises On Earnings Beat
Wells Fargo (WFC) shares are up 2.9% ahead of the open after beating Q3 expectations on the top and bottom line.
Here’s how the consumer bank’s results compared to analysts’ estimates:
- EPS: $1.48 vs $1.24 expected
- Revenue: $20.9 billion vs $20.1 billion expected
Higher interest rates boosted net interest income, which jumped 8% year over year during the quarter.
That helped offset slower lending activity at the bank.
Wells Fargo’s CEO said, “Our revenue growth from a year ago included both higher net interest income and noninterest income as we benefited from higher rates and the investments we are making in our businesses.”
He added, “While the economy has continued to be resilient, we are seeing the impact of the slowing economy with loan balances declining and charge-offs continuing to deteriorate modestly.”
UnitedHealth Jumps After Earnings Beat
UnitedHealth Group (UNH) shares are rising 1.5% in premarket trade after topping Q3 expectations.
Here’s how the health insurer’s results compared to analysts’ estimates:
- Adjusted EPS: $6.56 vs $6.32 expected
- Revenue: $92.4 billion vs $91.4 billion expected
Revenue jumped 14% year over year.
UnitedHealth’s medical loss ratio was also better than expected at 82.3% vs the 82.8% consensus estimate.
The company raised its full-year outlook, now expecting EPS between $24.85 and $25.
Microsoft Closes Activision Blizzard Acquisition
Microsoft (MSFT) shares are slipping 0.1% ahead of the open after closing its acquisition of Activision Blizzard.
Activision Blizzard announced the deal had closed in a regulatory filing this morning.
The deal expands Microsoft’s portfolio of video game franchises.
Microsoft faced intense regulatory pushback on the acquisition after announcing it in January 2022.
It was originally expected to close in June 2023 before the companies pushed the deadline to October 18.
