US bank stocks a mixed bag on earnings Friday
Friday brought the first wave of big-bank results in America, with the financials very much presenting a mixed bag for the sector.
- Bank of New York Mellon (NYSE:BK) rose more than 5%
- Wells Fargo (NYSE:WFC) fell more than 5.6%
- Citigroup (NYSE:C) fell just under 2%
- JP Morgan (NYSE:JPM) fell 0.6%
BNY Mellon reported a strong second quarter with revenue of $4.6 billion, surpassing estimates of $4.52 billion. The company reported an adjusted earnings per share (EPS) of $1.51, beating the expected $1.43. Its net income increased by 10% year-over-year to $1.143 billion. Total deposits were significantly higher than anticipated at $304.31 billion.
The company announced a 12% increase in its dividend.
Citigroup reported quarterly financial results at the top end of Wall Street expectations with Q2 revenue of $20.14 billion, slightly above the forecast of $20.07 billion. Net income was $3.22 billion, a 10% increase from the previous year.
Earnings per share (EPS) were reported at $1.52, higher than the $1.39 expected. Investment banking revenue surged by 60% to $853 million, and equities trading revenue increased by 37% to $1.5 billion. However, revenue from the fixed-interest business declined by 3% to $3.6 billion.
Wells Fargo reported lower-than-expected net interest income, on Q2 revenue of $20.69 billion, exceeding the estimated $20.28 billion. Net income was $4.9 billion, with an EPS of $1.33, beating the analysts' estimate of $1.29.
JPMorgan Chase announced record-breaking Q2 earnings with revenue of $50.99 billion, surpassing the estimate of $49.98 billion. The net income was $18.1 billion, and the EPS was $6.12. Investment banking revenue increased by 46%, and Banking & Payments revenue rose by 9%.
