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Fred Cole

An editor at FOMOdrive

  • Jul 17, 2023
  • 2 min read

US banks start the season of corporate reports positively

market bull and bear in blue color with financial background

The second quarter of the year has begun with three major US banks releasing their reports.

The banking crisis of regional banks this spring may have had an effect on the results.

JPMorgan, Wells Fargo, and Citigroup all reported results that were better than anticipated.

JPMorgan and Wells Fargo both saw an increase in earnings of 67% and 57% respectively.

Citigroup reported a 36% decrease in quarterly earnings, yet the overall results were still better than anticipated.

The second quarter of 2020 saw a surge of bankruptcies in the US regional banking sector, causing alarm throughout the banking industry. Consequently, the market was highly anticipating the reports of US banks for the quarter.

RBC reported that JPMorgan, the largest bank in the United States, exceeded analysts' expectations for both income and net profit in the second quarter. Net income for the quarter was $14.5 billion, a 67% increase from the same period last year, and net earnings per share were $4.37, higher than the expected $4.00.

Revenue for the second quarter of this year totaled $41.3 billion, a 34% increase from the same period in the previous year. This growth was driven by higher rates in the US and the acquisition of First Republic Bank earlier this year.

Wells Fargo, a bank active in the retail sector, reported impressive results for the quarter. Profit was $4.94 billion, a 57% increase from the same period a year ago. Net earnings per share were $1.25, surpassing the expected $1.16.

Revenue rose to $20.5 billion, surpassing the predicted $20.1 billion, a 20% increase. Despite having to set aside three times more in reserves, at $1.7 billion, the bank was still able to significantly boost its profits.

Net income for Citigroup, one of the Big Six U.S. banks, decreased by 36% to $2.9 billion, while total revenue dropped by a mere 1% to $19.4 billion. Despite the decrease in income, earnings per share still exceeded the expected $1.30, coming in at $1.33.

Citigroup's profits experienced a sharp decrease in the second quarter due to increasing costs and loan servicing costs. Additionally, the investment operations of the bank have been impacted by the market's lack of stability.

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