Big Banks Report Earnings
Four big banks kicked off earnings season last Friday and this Monday. J.P Morgan (JPM), Citibank (C), Bank of America (BAC), and Wells Fargo (WFC) were all part of the fun that lead to sizeable gains in Monday's trading session. Banks tackled issues such as rising interest rates and trade tensions in conference calls while discussing earnings numbers with investors. Overall, the data show one clear loser and mixed strength from the other three.
The clear loser was, and continues to be, Wells Fargo. The bank saw a contraction in all key indicators. An drop of 3 percent in revenue was accompanied by an 8 percent drop in debit and credit card spend, a 2 percent drop in deposits, and a 1 percent drop in loan growth. The only inkling of positivity came from a large drop in nonperforming loans of -19 percent. Despite a poor earnings report, shares of WFC still jumped almost 3 percent on strength in the sector.
The remaining three banks each saw their share price grow more than WFC by 0.7 percent or higher. J.P. Morgan reported the highest revenue and debit and credit spending but was matched or beaten by Bank or America in deposits and loan growth. Citibank came in lower than both banks in their reports but still posted good enough results to move in the market. Bank of America moved the most at 4.3 percent.