JPMorgan Chase and Other Banks Weigh in with Earnings Reports This Week
Bank of America and JPMorgan Chase were among the banks that released quarterly earnings reports this week.
Quick overview
- This week, banks are releasing quarterly earnings reports, with JPMorgan Chase exceeding expectations while Bank of America reported mixed results.
- JPMorgan Chase's earnings of $5.24 per share surpassed the expected $4.48, leading to an updated annual earnings forecast of $19.36.
- Despite a strong earnings report, JPM stock fell by 0.15%, disappointing investors who expected a positive market reaction.
- Bank of America missed revenue expectations but reported a 4% increase in revenue and a 3% rise in profit compared to the previous year.
This is a big week for banks, as many of them are releasing quarterly earnings reports. JPMorgan Chase (JPM) beat expectations while Bank of America (BAC) offered mixed numbers.
For the second fiscal quarter of the year, JPMorgan Chase reported earnings of $5.24, above the $4.48 expected EPS. They also brought in revenue of $44.91 billion, which outpaced expectations. The bank was able to update its earnings forecast as a result, raising their earnings forecast for the year from $18.39 to $19.36.
JPM stock is down today, though, with a drop of 0.15%. The positive outlook and the fact that they beat expectations was not enough to elevate the stock price. JPM stock enjoyed an early month bump in July, and it is well above its three-month average right now, but it must be disappointing for investors to see such a positive earnings statement not reflect positively on stock prices.
Bank of America Releases Quarterly Report
Out of all the banks that have posted quarterly earnings this week, Bank of America was the only one to miss the mark on revenue. They expected $26.72 billion in earnings for the quarter but only managed to make $26.61 billion. Their earnings per share were 89 cents compared to the expected 86 cents. The result was bad enough to drive down their stock price 1.06% for the day.
Overall, Bank of American performed decently, with a revenue increase of about 4% and profit up 3% from the previous year. However, expectations were high, and they were unable to meet that bar on all fronts.
In a statement to the public, CEO Brian Moynihan said that the company’s NII was up 7% for the quarter and that this was the fourth quarter in a row that happened. NII is the difference between what the bank earns from lenders and what it pays out to depositors.
The company stressed the bright spots in the report, including an increase in loans given and deposits made as well as excellent “momentum in our markets businesses,” said Moynihan. Consumers were spending at a steady rate and did not seem fazed by economic changes, the company stated.
Citigroup and Wells Fargo posted their quarterly earnings on Tuesday, and Morgan Stanley and Goldman Sachs released reports for the quarter early on Wednesday. So far, the overall earnings reports are very positive, with banks beating revenue expectations. That should help relieve some other selling pressure created by this week’s CPI report that showed inflation is worsening.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save