JP Morgan, Wells Fargo, Citigroup earnings: How did these global giants fare in Q4?

US Banks Earnings
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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.

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