{"id":73335,"date":"2024-01-12T08:57:43","date_gmt":"2024-01-12T13:57:43","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=73335"},"modified":"2024-01-12T09:13:16","modified_gmt":"2024-01-12T14:13:16","slug":"coffee-with-greta-bank-earnings-rush","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2024\/01\/12\/coffee-with-greta-bank-earnings-rush\/","title":{"rendered":"Coffee With Greta: Bank Earnings Rush"},"content":{"rendered":"

DJIA Futures: <\/b>-104 (-0.3%)<\/span><\/p>\n

SPX Futures: <\/b>-3 (-0.1%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-9 (-0.1%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are slipping after the release of positive inflation data as traders digest big bank earnings.\u00a0<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

PPI Surprise<\/span><\/h2>\n

Wholesale inflation pressures unexpectedly fell at the end of 2023.<\/span><\/p>\n

The Bureau of Labor Statistics\u2019 producer price index fell 0.1% monthly in December and rose 1% year over year.\u00a0<\/span><\/p>\n

That was lower than expectations for a 0.1% monthly and 1.3% annual gain.<\/span><\/p>\n

It was the third straight monthly decline.\u00a0<\/span><\/p>\n

The core PPI was unchanged for the month and up 1.8% annually vs expectations for 0.2% monthly and 2% annually.<\/span><\/p>\n

The PPI is a leading indicator for consumer prices and considered a good gauge for future inflation pressures.\u00a0\u00a0<\/span><\/p>\n

JPMorgan Chase Beats Q4 Estimates<\/span><\/h2>\n

JPMorgan Chase <\/b>(JPM) shares are up 2.1% ahead of the open after beating Q4 expectations on the top and bottom line.\u00a0<\/span><\/p>\n

Here\u2019s how the largest bank in the U.S.\u2019s results compared to analysts\u2019 estimates:\u00a0<\/span><\/p>\n

    \n
  • Adjusted EPS: $3.97 vs $3.35 expected<\/span><\/li>\n
  • Revenue: $39.9 billion vs $39.73 billion expected<\/span><\/li>\n<\/ul>\n

    The bank incurred a $2.9 billion fee from the FDIC during the quarter for its rescue of regional banks.<\/span><\/p>\n

    Q4 net interest income was $24 billion excluding markets vs $23 billion expected.\u00a0<\/span><\/p>\n

    For the full-year, net interest income excluding markets totaled $94 billion.\u00a0<\/span><\/p>\n

    In Q4, corporate and investment bank market revenue rose 2% to $5.8 billion.<\/span><\/p>\n

    Gross investment banking and markets revenue rose 32% to $924 million.<\/span><\/p>\n

    Assets under management jumped 24% to $3.4 trillion.<\/span><\/p>\n

    JPMorgan forecast 2024 net interest income excluding markets of $88 billion vs $86.5 billion expected.\u00a0<\/span><\/p>\n

    The bank generated nearly $50 billion in profit in 2023, $4.1 billion of which came from First Republic Bank.\u00a0<\/span><\/p>\n

    CEO Jamie Dimon said, \u201cThe U.S. economy continues to be resilient, with consumers still spending, and markets currently expect a soft landing. It is important to note that the economy is being fueled by large amounts of government deficit spending and past stimulus.\u201d<\/span><\/p>\n

    Citigroup Tops Q4 Earnings Expectations<\/span><\/h2>\n

    Citigroup <\/b>(C) shares are rising 1.9% in premarket trade after beating Q4 earnings expectations but missing on revenue.\u00a0<\/span><\/p>\n

    Here\u2019s how the investment bank\u2019s results compared to analysts\u2019 estimates:\u00a0<\/span><\/p>\n

      \n
    • Adjusted EPS: $0.84 vs $0.81 expected<\/span><\/li>\n
    • Revenue: $17.44 billion vs $18.74 billion expected<\/span><\/li>\n<\/ul>\n

      On an unadjusted basis, the bank posted a $1.8 billion loss in the quarter after booking charges tied to overseas risks, the regional banking crisis, and CEO Jane Fraser\u2019s corporate overhaul.\u00a0<\/span><\/p>\n

      Those charges hit earnings by $4.66 billion and were larger than what CFO Mark Mason had previously disclosed.\u00a0<\/span><\/p>\n

      Fraser called the bank's performance “very disappointing” because of the charges but said Citigroup had made “substantial progress” simplifying the bank last year.<\/p>\n

      Bank Of America Drops As Earnings Fall<\/span><\/h2>\n

      Bank of America <\/b>(BAC) shares are down 2.5% ahead of the open after reporting a sharp drop in earnings year over year.\u00a0<\/span><\/p>\n

      Here\u2019s how the bank\u2019s results compared to analysts\u2019 estimates:\u00a0<\/span><\/p>\n

        \n
      • Adjusted EPS: $0.70 vs $0.53 expected<\/span><\/li>\n
      • Revenue: $22 billion vs $23.7 billion<\/span><\/li>\n<\/ul>\n

        On an unadjusted basis, net income tumbled to $3.1 billion from $7.1 billion a year ago.\u00a0<\/span><\/p>\n

        Bank of America incurred a $2.1 billion fee from the FDIC related to its rescue of regional banks earlier in the year.\u00a0<\/span><\/p>\n

        Net interest income fell 5% to $139.9 billion while non-interest income fell by $1.8 billion to $8.0 billion.\u00a0<\/span><\/p>\n

        The bank boosted its loan loss reserves by $12 million to $1.1 billion.\u00a0<\/span><\/p>\n

        The consumer banking division had net income of $2.8 billion, with revenue down 4% to $10.3 billion.\u00a0<\/span><\/p>\n

        The global wealth and investment-management segment had net income of $1 billion, as client balances rose 12% to $3.8 trillion.<\/span><\/p>\n

        The global banking division had net income of $2.5 billion, as investment banking fees rose 7% to $1.1 billion.<\/span><\/p>\n

        The global markets division had net income of $636 million, as sales and trading revenue rose 3% to $3.6 billion.\u00a0<\/span><\/p>\n

        Fixed income, currencies and commodities income fell 4% to $2.1 billion.<\/span><\/p>\n

        Equities trading revenue rose 13% to $1.5 billion.<\/span><\/p>\n

        Wells Fargo Slips Despite Higher Profit<\/span><\/h2>\n

        Wells Fargo <\/b>(WFC) shares are down 1.5% ahead of the open after reporting Q4 earnings that were in line with expectations and beating on revenue.\u00a0<\/span><\/p>\n

        Here\u2019s how the consumer bank\u2019s results compared to analysts\u2019 estimates:\u00a0<\/span><\/p>\n

          \n
        • EPS: $0.86, as expected<\/span><\/li>\n
        • Revenue: $20.48 billion vs $20.30 billion expected<\/span><\/li>\n<\/ul>\n

          Wells Fargo boosted its loan loss reserves by 34% to $1.28 billion in the quarter.\u00a0<\/span><\/p>\n

          CEO Charlie Scharf said, \u201cWe are closely monitoring credit and while we see modest deterioration, it remains consistent with our expectations.\u201d<\/span><\/p>\n

          The bank\u2019s net interest income fell 4.9% to $12.77 billion vs $12.76 billion expected.\u00a0<\/span><\/p>\n

          Non-interest income rose 16.8% to $7.71 billion vs $7.51 billion expected, amid higher trading revenue and investment banking fees.<\/span><\/p>\n

          Delta Slides On Lower Guidance<\/span><\/h2>\n

          Delta Airlines <\/b>(DAL) shares are dropping 5.2% in premarket trade after beating Q4 expectations but lowering guidance.\u00a0<\/span><\/p>\n

          Here\u2019s how the airline\u2019s results compared to analyst\u2019 estimates:\u00a0<\/span><\/p>\n

            \n
          • Adjusted EPS $1.28 vs $1.17 expected<\/span><\/li>\n
          • Adjusted revenue: $13.66 billion vs $13.52 billion expected<\/span><\/li>\n<\/ul>\n

            The company\u2019s net income jumped to $2.04 billion from $828 million a year ago.\u00a0<\/span><\/p>\n

            A record number of passengers paid to sit in higher-priced cabins during the quarter, driving premium cabin revenue up 15% vs 10% growth in standard coach revenue.\u00a0<\/span><\/p>\n

            Delta said it expects Q1 revenue to increase 3% to 6% year over year with EPS between $0.25 and $0.50, in line with estimates.\u00a0<\/span><\/p>\n

            For the full year, the airline forecast adjusted EPS between $6 and $7, below the over $7 forecast the company previously predicted.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

            DJIA Futures: -104 (-0.3%) SPX Futures: -3 (-0.1%) NASDAQ Futures: -9 (-0.1%) Good morning friends! Futures are slipping after the release of positive inflation data as traders digest big bank earnings.\u00a0 Let\u2019s get right to it! PPI Surprise Wholesale inflation pressures unexpectedly fell at the end of 2023. The Bureau of Labor Statistics\u2019 producer price index fell 0.1% monthly in December and rose 1% year over year.\u00a0 That was lower than expectations for a 0.1% monthly and 1.3% annual gain. It was the third straight monthly decline.\u00a0 The core PPI was unchanged for the month and up 1.8% annually vs expectations for 0.2% monthly and 2% annually. The PPI is a leading indicator for consumer prices and considered a good gauge for future inflation pressures.\u00a0\u00a0 JPMorgan Chase Beats Q4 Estimates JPMorgan Chase (JPM) shares are up 2.1% ahead of the open after beating Q4 expectations on the top and bottom line.\u00a0 Here\u2019s how the largest bank in the U.S.\u2019s results compared to analysts\u2019 estimates:\u00a0 Adjusted EPS: $3.97 vs $3.35 expected Revenue: $39.9 billion vs $39.73 billion expected The bank incurred a $2.9 billion fee from the FDIC during the quarter for its rescue of regional banks. Q4 net interest income was $24 billion excluding markets vs $23 billion expected.\u00a0 For the full-year, net interest income excluding markets totaled $94 billion.\u00a0 In Q4, corporate and investment bank market revenue rose 2% to $5.8 billion. Gross investment banking and markets revenue rose 32% to $924 million. Assets under management jumped 24% to $3.4 trillion. JPMorgan forecast 2024 net interest income excluding markets of $88 billion vs $86.5 billion expected.\u00a0 The bank generated nearly $50 billion in profit in 2023, $4.1 billion of which came from First Republic Bank.\u00a0 CEO Jamie Dimon said, \u201cThe U.S. economy continues to be resilient, with consumers still spending, and markets currently expect a soft landing. It is important to note that the economy is being fueled by large amounts of government deficit spending and past stimulus.\u201d Citigroup Tops Q4 Earnings Expectations Citigroup (C) shares are rising 1.9% in premarket trade after beating Q4 earnings expectations but missing on revenue.\u00a0 Here\u2019s how the investment bank\u2019s results compared to analysts\u2019 estimates:\u00a0 Adjusted EPS: $0.84 vs $0.81 expected Revenue: $17.44 billion vs $18.74 billion expected On an unadjusted basis, the bank posted a $1.8 billion loss in the quarter after booking charges tied to overseas risks, the regional banking crisis, and CEO Jane Fraser\u2019s corporate overhaul.\u00a0 Those charges hit earnings by $4.66 billion and were larger than what CFO Mark Mason had previously disclosed.\u00a0 Fraser called the bank’s performance “very disappointing” because of the charges but said Citigroup had made “substantial progress” simplifying the bank last year. Bank Of America Drops As Earnings Fall Bank of America (BAC) shares are down 2.5% ahead of the open after reporting a sharp drop in earnings year over year.\u00a0 Here\u2019s how the bank\u2019s results compared to analysts\u2019 estimates:\u00a0 Adjusted EPS: $0.70 vs $0.53 expected Revenue: $22 billion vs $23.7 billion On an unadjusted basis, net income tumbled to $3.1 billion from $7.1 billion a year ago.\u00a0 Bank of America incurred a $2.1 billion fee from the FDIC related to its rescue of regional banks earlier in the year.\u00a0 Net interest income fell 5% to $139.9 billion while non-interest income fell by $1.8 billion to $8.0 billion.\u00a0 The bank boosted its loan loss reserves by $12 million to $1.1 billion.\u00a0 The consumer banking division had net income of $2.8 billion, with revenue down 4% to $10.3 billion.\u00a0 The global wealth and investment-management segment had net income of $1 billion, as client balances rose 12% to $3.8 trillion. The global banking division had net income of $2.5 billion, as investment banking fees rose 7% to $1.1 billion. The global markets division had net income of $636 million, as sales and trading revenue rose 3% to $3.6 billion.\u00a0 Fixed income, currencies and commodities income fell 4% to $2.1 billion. Equities trading revenue rose 13% to $1.5 billion. Wells Fargo Slips Despite Higher Profit Wells Fargo (WFC) shares are down 1.5% ahead of the open after reporting Q4 earnings that were in line with expectations and beating on revenue.\u00a0 Here\u2019s how the consumer bank\u2019s results compared to analysts\u2019 estimates:\u00a0 EPS: $0.86, as expected Revenue: $20.48 billion vs $20.30 billion expected Wells Fargo boosted its loan loss reserves by 34% to $1.28 billion in the quarter.\u00a0 CEO Charlie Scharf said, \u201cWe are closely monitoring credit and while we see modest deterioration, it remains consistent with our expectations.\u201d The bank\u2019s net interest income fell 4.9% to $12.77 billion vs $12.76 billion expected.\u00a0 Non-interest income rose 16.8% to $7.71 billion vs $7.51 billion expected, amid higher trading revenue and investment banking fees. Delta Slides On Lower Guidance Delta Airlines (DAL) shares are dropping 5.2% in premarket trade after beating Q4 expectations but lowering guidance.\u00a0 Here\u2019s how the airline\u2019s results compared to analyst\u2019 estimates:\u00a0 Adjusted EPS $1.28 vs $1.17 expected Adjusted revenue: $13.66 billion vs $13.52 billion expected The company\u2019s net income jumped to $2.04 billion from $828 million a year ago.\u00a0 A record number of passengers paid to sit in higher-priced cabins during the quarter, driving premium cabin revenue up 15% vs 10% growth in standard coach revenue.\u00a0 Delta said it expects Q1 revenue to increase 3% to 6% year over year with EPS between $0.25 and $0.50, in line with estimates.\u00a0 For the full year, the airline forecast adjusted EPS between $6 and $7, below the over $7 forecast the company previously predicted.<\/p>\n","protected":false},"author":41,"featured_media":73339,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-73335","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/73335","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=73335"}],"version-history":[{"count":3,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/73335\/revisions"}],"predecessor-version":[{"id":73345,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/73335\/revisions\/73345"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/73339"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=73335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=73335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=73335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}