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Citigroup (C, Financial), Wells Fargo (WFC, Financial) and JPMorgan (JPM, Financial) led the beginning of the second-quarter earnings season on Friday. Both Citigroup and JPMorgan beat earnings expectations with comparable quarter revenue growth, while Wells Fargo slightly underperformed.
Source: Wall Street Journal
Citigroup
Citigroup reported second-quarter earnings of $1.63 per share, beating estimates by 7 cents. Revenue slightly underperformed expectations at $18.47 billion versus $19.07 billion, but gained 1.7% from the comparable quarter.
Citigroup’s revenue was divided by Global Consumer Banking and the Institutional Clients Group. Global Consumer Banking reported revenue of $8.3 billion with an increase of 2% from the comparable quarter. The Institutional Clients Group reported revenue of $9.7 billion with an increase of 3% from the comparable quarter. Global Consumer Banking and Institutional Clients Group earnings were $1.3 billion and $3.2 billion respectively.
JPMorgan
JPMorgan reported second-quarter earnings of $2.29 per share, beating estimates by 7 cents. Revenue beat expectations for the quarter at $28.39 billion, outperforming by $1.1 billion. Revenue also reported a 10.2% increase over the comparable quarter.
Revenue for JPMorgan was led by Consumer and Community Banking at $12.5 billion. Meanwhile, Corporate and Investment Bank reported revenue of $9.9 billion, Commercial Banking reported revenue of $2.3 billion and Asset and Wealth Management reported revenue of $3.6 billion.
Total net income for the company was $8.3 billion, increasing 18% from the comparable quarter. Net income was also led by Consumer and Community Banking with an earnings contribution of $3.4 billion.
Wells Fargo
Wells Fargo slightly underperformed expectations, missing both revenue and earnings estimates with a comparable quarter decrease in revenue. Wells Fargo reported second-quarter earnings of $1.08, missing estimates by 4 cents. Revenue for the quarter was $21.55 billion, missing estimates by $90 million and decreasing -3.1% from the comparable quarter.
Revenue and net income were down across all three of the company’s business segments in comparison to the second quarter of 2017. Wells Fargo’s Community Banking group was the greatest contributor to revenue with total sales of $11.8 billion. The bank’s Wholesale Banking group was the greatest contributor to earnings with net income of $2.6 billion.
Next week
Banking and financial services industry earnings will continue next week. Bank of America (BAC, Financial), Goldman Sachs (GS, Financial) and Morgan Stanley (MS, Financial) will finish up the big banks reporting list. Other financial services company earnings reports will also include BlackRock (BLK, Financial), M&T Bank (MTB, Financial), MB Financial (MBFI, Financial) and E*Trade (ETFC, Financial).
Disclosure: I do not directly own shares of any companies included in this article.
