To The Moon

Summary of Bank earnings

The info below is from FactSet.

Large US Banks Report (Earnings)

Citigroup reports Q4 EPS $1.34 vs FactSet $1.22

  • Revenue $19.58B vs FactSet $19.51B 

  • Net interest income (reported) $13.73B vs FactSet $13.41B

  • Authorizes $20B buyback

  • Guides 2025 revenues $83.5-84.5B vs FS $83.8B; NII ex-markets up modestly y/y; NIR ex markets up y/y

JPMorgan Chase reports Q4 EPS $4.81 vs FactSet $4.09 

  • Revenue $42.77B vs StreetAccount $41.90B

  • Net interest income $23.35B vs SA $22.71B

  • FY25 Guidance: NII ~$90B ex. Markets, Card Services NCO rate of 3.6%, Adj expense ~$95B

Goldman Sachs reports Q4 EPS $11.95 vs FactSet $8.21 

  • Revenue $13.87B vs FactSet $12.36B 

  • Global Banking & Markets $8.48B vs SA $7.58B

  • Asset & Wealth Management $4.72B vs FS $4.16B

  • Platform Solutions $669M vs FS $655.3M

Wells Fargo reports Q4 EPS $1.43 vs FactSet $1.35 

  • Revenue $20.38B vs FactSet $20.58B 

  • Net interest income $11.84B vs FactSet $11.74B

  • Net interest margin 2.70% vs FS 2.67%

  • Guides FY25 NII to be 1.3% higher y/y growth implies 2025 NII of ~$48.2-49.1B vs FS of $47.2B

My thoughts

It looks like the (bigger) banks are off to a strong start. These are some of the big boys. (Big 4 of banks are Wells Fargo, Bank of America, Citibank & JP Morgan). This may not represent how the rest of the banking sector are doing especially for the regional banks - who have much higher exposure in auto and mortgage loans. 

The deep dive into the assets and liabilities can be helpful as they will reveal weaknesses  in delinquencies and bad debts. They do not have to declare unrealize losses coming from Treasury bills and bonds. The recent LA fire is a likely to cause some of volatility starting in the insurance and the banking sectors. 

Let us monitor. 

@TigerStars