JP Morgan, Wells Fargo, Citigroup earnings: How did these global giants fare in Q4?
Major US Banks including JP Morgan Chase, Wells Fargo and Citibank have reported their Q4 earnings. Here’s are key highlights from their Q4 results:
JP Morgan
The largest lender in the US, reported a 14% fall in the Q4 earning. However, it was higher than analysts' estimates.
Net profit: JP Morgan posted a profit of $10.4 billion, or $3.33 per share, in the quarter ended December. Analysts had estimated a profit of $3.01 per share.
Revenue: The revenue remained flat at $30.3 billion. Last year during the same quarter, the revenue was $30.35 billion. The analysts have earlier estimated revenue of $29.9 billion. It posted a 28% jump in investment banking revenue while overall trading revenue fell 13%.
Profit decline: Higher-than-expected expenses drove a 14% decline in the fourth-quarter profit to $10.4 billion.
Net Interest Income: Net interest income reported by the bank was $13.7 billion, a rise of 3%. Higher NII was driven by balance sheet growth, partially offset by lower net interest income in CIB Markets.
Deposits: The total deposits were $2.5 trillion, up 17% YoY and 4% QoQ.
The share price closed 6.15% lower on Friday at $157.89 per share.
Wells Fargo
The bank posted quarterly results that exceeded analysts' expectations and a significant rise in profit.
Revenue: The bank reported revenue of $20.86 billion in Q4 as compared to $18.5 billion last year in the same quarter. The revenue was higher than analysts' expectations of $18.73 billion. The Consumer Banking and Lending as well as Commercial Banking segment’s total quarterly revenues increased 1%, respectively. Revenues in the Corporate and Investment Banking as well as the Wealth and Investment Management units rose 11% and 6%, respectively.
Net Interest Income: The NII for Q4 decreased by 1% YoY to $9.3 billion. The reason for reduced NII was low yields in earning assets and lower loan balances. The net interest margin (NIM) shrank 5 basis points to 2.11%. The Net Income increased by 89% YoY to $5.75 billion against $3.09 billion.
Earning Per Share: The bank reported EPS at $1.25 per share, excluding certain items. It was higher than the consensus estimate of $1.13 per share.
Efficiency ratio: A fall in the efficiency ratio indicates a rise in profitability. The bank's efficiency ratio fell to 63% from 80% recorded in the year-ago quarter.
The share price closed 3.68% higher on Friday at $58.06 per share.
Citigroup
Citigroup has posted a 26% drop in Q4 profits but exceeded market expectation as strong gains in its investment banking business cushioned the blow from higher expenses.
Net profit: The net profit fell to $3.2 billion or $1.46 per share. In the same period last year, the profit reported by the bank was $4.3 billion or $1.92 per share. Analysts' have earlier estimated a profit of $1.38 per share.
Total revenue: The revenue increased 1% from a year earlier to $17 billion.
Net Interest Income: Net interest income was flat year-over-year at $10.82 billion, NII from the bank's basic lending business outside of markets rose 0.6%. Net interest margin, which measures the difference between what Citigroup pays for money and earns from loans and securities, declined to 1.98% from 2.06% a year earlier and 1.99% in the third quarter. The share price closed 1.25% lower on Friday at $66.93 per share.