Bank profits dye US stock trading green
Wall Street started Friday’s trading in the green, after four of the largest US banks announced strong results during the second quarter of the year, benefiting from the continued high federal interest rate, which contributed to the increase in investment returns for their portfolios.
In the wake of the announcement of “JP Morgan”, “Wells Fargo” and “Citigroup”, as well as the largest investment bank in America, “Black Rock”, the results of the ending quarter, the main stock indices were in the green zone, with rises exceeding a third of a percentage point for each. .
JPMorgan Chase Bank
JPMorgan Chase announced a larger-than-expected jump in second-quarter earnings, as it gained more interest payments from borrowers and benefited from the purchase of First Republic, which came close to collapse three months ago.
Net interest income of the largest US banks by assets amounted to $21.9 billion, an increase of 44%, or 38% excluding the impact of the First Republic purchase.
The bank expected net interest income of about $87 billion for the full year, exceeding Wall Street’s forecast of $83.37 billion, according to data from Refinitiv, a popular data analysis firm.
The bank’s profit jumped 67% to $14.47 billion, or $4.75 per share, in the quarter ended June 30. Excluding one-off costs, the bank earned $4.37 per share, above analysts’ average estimate of $4 per share.
During the first minutes of trading on Friday, the bank’s share price rose 2.7%.
Wells Fargo bank
On Friday, Wells Fargo reported a 57% profit growth in the second quarter, raising its annual forecast for net interest income.
Net interest income increased 29% to $13.16 billion, thanks to the rise in the interest rate with the increase in the cost of borrowing at Wells Fargo and other banks, in conjunction with the US interest rate hike to control inflation.
Wells Fargo, the fourth-largest US bank, said it expects net interest income this year to rise 14 percent, compared to $45 billion last year. The bank had previously expected net interest income to grow by 10%.
Wells Fargo reported earnings of $1.25 per share for the three months ended June 30, beating analysts’ average estimate of $1.16 per share, according to Refinitiv data.
The bank set aside provisions for credit losses of $1.71 billion in the second quarter, compared with $580 million a year earlier.
During the first minutes of trading on Friday, the bank’s share price rose 4%.
“City Group”
The group announced earnings of $1.33 per share, while its revenues during the quarter amounted to $19.44 billion. Analysts polled by Refinitiv had forecast revenue of $19.29 billion per share.
During the first minutes of trading on Friday, the group’s share price rose 2%.
“Black Rock”
The investment bank reported earnings of $9.28 per share and revenue of $4.46 billion for the ended quarter, while analysts surveyed by Refinitiv expected $8.45 per share in profit and $4.45 billion in revenue.
There was no significant impact of business results on the share price in initial trading.
(Reuters, The New Arab)
2023-07-14 16:39:33
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