FINANCIAL INSTITUTIONS QUARTERLY EARNINGS RESULTS

April 12th, 2024 – Following the publication of the first-quarter report, JPMorgan shares fell around 5% on Friday. The company beat analysts’ expectations on diluted EPS, by almost 0.50 cents, reporting a $4.63 diluted EPS (+ 12.9% YoY). Revenue also were better than expected ($41.9 billion vs. the estimated $41.28 billion) and they grew 9.3% YoY. The international bank did though miss analysts’ expectations on its net interest income, that was at $23.2 billion and well below the record just set in the last quarter of fiscal 2023, which was $24.1 billion. Earlier this week CEO Jamie Dimon in his annual letter to shareholders warned investors saying that he believes that the chances of a soft landing are a lot lower than what the market is currently pricing (70/80% chance), and the bank is ready to face a recession with rates from 2 to 8%, or even more. However, even with Friday’s performance, JPMorgan is up by 12% year to date. 

Citigroup also posted its first-quarter results. The bank topped analysts’ estimates, but the profit fell 27% from a year earlier, causing the title to lose 0.7%. The adjusted EPS was of $1.86 vs. the expected 1.23, while revenue was $21.1 billion, topping by more than $1 billion the estimated ones. The bank lost 1.4% and is up almost by 13% year to date. 

Last but not least, BlackRock has beaten analysts’ expectations reaching a record sum of $10.47 trillion asset under management thanks to the stock market rally and their new spot Bitcoin ETF. The company posted better than expected EPS at $9.81 (+24% YoY) and revenue ($4.67 billion, +11% YoY). The company lost 1.5% and is down by 3% year to date.

Author: Filippo Ferrero

 

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