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Market Update

Citigroup, JPMorgan Earning Jump on Bond Trading; Wells Fargo Net Flat


Author: Mukesh Buch
ticker.com
Last Update: 12:47 PM ET April 13 2017

12:40 PM New York – Citigroup net soared 17% on higher trading revenues. Commerce Bancshares net jumped 10%. PNC Financial net surged 13%. JPMorgan profit soared 17% on strong trading revenue, loan margin and bond trading. Wells Fargo profits hurt on higher costs and weaker mortgage revenue.

Tollbooth Index increased 22.76 or 0.2% to 11,566.68.

Earnings Review

Citigroup Inc (C) gained 1.6% or 91 cents to $59.40 after the banking and financial services provider reported total revenues in the first-quarter ending in March increased 2.8% from a year ago to $18.1 billion.

Net income in the quarter soared 17.1% to $4.1 billion or $1.35 per diluted share from $3.5 billion or $1.10 in the same quarter last year.

Trading revenue in the quarter surged 17% to $4.39 billion and fixed-income trading jumped 19% to $3.62 billion and equities trading improved 10%.

The bank returned $2.2 billion to shareholders and repurchased 30 million of common shares.

As of March 31, total deposit rose 2% to $950 billion and total loans in the quarter increased 2% to $629 billion.

""""Revenues increased in both our consumer and institutional lines of business, most notably in areas where we have been investing such as equities, U.S. cards, and Mexico,"""" chief executive officer Michael Corbat said.

Commerce Bancshares, Inc (CBSH) fell 41 cents to $53.82 after the retail banking services provider said total revenues in the first-quarter ending in March increased 4.4% from a year ago to $295.3 million.

Net income in the quarter jumped 9.8% to $69.3 million or 68 cents per diluted share from $63.1 million or 62 cents in the same quarter last year.

PNC Financial Services Group Inc (PNC) gained 1.5% or $1.60 to $117.56 after the diversified financial services provider reported revenues in the first-quarter ending in March advanced 6% from a year ago to $3.9 billion.

Net income in the quarter surged 13.3% to $973 million or $1.96 per diluted share from $859 million or $1.68 in the same quarter last year.

JPMorgan Chase & Co (JPM) increased 1.2% or $1.02 to $86.41 after the investment bank and financial services provider reported revenues in the first-quarter ending in March jumped 6% from a year ago to $25.6 billion.

Net income in the quarter soared 17% to $6.4 billion or $1.65 per diluted share from $5.5 billion or $1.35 in the same quarter last year.

The investment banker said trading revenue jumped $6.52 billion and average core loans advanced 11% and deposits surged 11% to $623 billion and one of the main drivers behind the results, the bond trading soared 17% to $9.5 billion.

Wells Fargo & Co (WFC) slipped 1.6% or 84 cents to $52.27 after the diversified financial services provider reported revenues in the first-quarter ending in March fell 0.9% from a year ago to $22 billion.

Net income in the quarter was flat at $5.46 billion from a year ago period and or diluted earnings per share edged up to $1 from 99 cents in the same quarter last year.

Wells Fargo said total average deposits jumped 7% to $1.3 trillion and average total loans in the quarter advanced 4% to $963.6 billion.

The diversified financial services provider said flat profit was mainly due to higher costs and weaker mortgage banking revenue as its mortgage banking revenue fell to $1.23 billion from $1.59 billion in the same period a year ago.

""""I want to make it very clear that operating at this level is not acceptable,"""" chief executive officer Tim Sloan said.

""""The findings are valuable to us and beneficial in helping to identify areas for further improvement. While we have more work to do, I am pleased with all we have accomplished thus far,"""" added Sloan.

Warren Buffet controlled Berkshire Hathaway said it will pull its application to increase its stake in the bank above 10% and added that increasing stake “would materially restrict our commercial activity” with the bank.

Berkshire Hathaway, said """"investment or valuation considerations"""" were not the factors in sale of Wells Fargo’s 7.13 million shares in this week but also plans to sale additional 1.87 million shares"""" in the near future.""""

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc