Financial Giants Q4 Roundup: JPM, BAC, BLK Beat Expectations While Citi Delivers Mixed Results
JP Morgan stock was down in pre-market trading on Friday even as it reported strong Q4 results. The financial services company saw revenues of $34.5 billion, up 17.9% year-over-year and beating estimates by $270 million. Adjusted earnings came in at $3.56 per share beating Street expectations of $3.08.
However, the bank’s provision for credit losses in the fourth quarter increased 49% quarter-on-quarter to $2.3 billion due to a “modest deterioration in the Firm’s macroeconomic outlook, now reflecting a mild recession in the central case, as well as loan growth in Card Services.”
JPM has now guided for FY23 adjusted noninterest expense of approximately $81 billion versus FY22 actual noninterest expense of $76.1 billion.
Bank of America shares dipped in pre-market trading on Friday as its net interest income in the fourth quarter fell short of estimates. The bank’s NII climbed 29% year-over-year to $14.7 billion but below Street estimates of $14.8 billion.
The bank generated revenues of $24.5 billion surpassing estimates by $360 million. Diluted earnings came in at $0.85 per share coming in ahead of Street expectations of $0.77.
Bank of America CEO Brian Moynihan commented, “The themes in the quarter have been consistent all year as organic growth and rates helped deliver the value of our deposit franchise. That coupled with expense management helped drive operating leverage for the sixth consecutive quarter.”
Citigroup ticked higher in pre-market trading on Friday even as the banking giant posted mixed Q4 results. Profits declined by 21% year-over-year to $2.5 billion and adjusted earnings came in at $1.10 per share. Q4 earnings fell short of estimates of $1.14.
The bank generated revenues of $18 billion, up 6% year-over-year and beating estimates by $30 million.
Citi’s cost of credit was around $1.8 billion in Q4 versus a negative $0.5 billion in the same period a year back “reflecting a net build in the allowance for credit losses (ACL) for loans and unfunded commitments of $640 million.”
BlackRock stock dipped in pre-market trading on Friday as its Q4 results still beat estimates even after a year-over-year decline. The investment company saw revenues fall 15.1% year-over-year to $4.34 billion but still surpassing estimates by $70 million.
Adjusted Q4 earnings topped estimates at $8.93 per share handily beating Street estimates of $8.1.
BlackRock’s Chairman and CEO, Larry Fink commented, “We ended the year with strong momentum, generating $114B of Q4 net inflows, representing 3% annualized organic base fee growth, reflecting continued strength in ETFs and significant outsourcing mandates.”
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