In this article, we will take a look at the 10 key quarterly reports from the financial sector.
Some of the biggest U.S. banks, including Citigroup Inc. (NYSE:C), Wells Fargo & Company (NYSE:WFC) and JPMorgan Chase & Co. (NYSE:JPM), recently came out with their reports for the second quarter.
If we look at their price actions, Citigroup shares turned green in the pre-market trading Friday, July 15, after beating financial expectations for Q2. In comparison, Wells Fargo stock marginally moved down the pre-market trading Friday after missing the consensus estimates. On the other hand, JPMorgan stock hit a new 52-week low following weak results for the second quarter.
In addition, many other financial stocks, including The Bank of New York Mellon Corporation (NYSE:BK) and Morgan Stanley (NYSE:MS), came into the limelight after releasing their earnings reports.
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Key Quarterly Reports from The Financial Sector
10. Washington Federal, Inc. (NASDAQ:WAFD)
Number of Hedge Fund Holders: 20
Shares of Washington Federal, Inc. (NASDAQ:WAFD) closed higher on Thursday, July 14, 2022, after posting better-than-expected financial results for its fiscal third quarter. The Seattle-based bank reported earnings of 91 cents per share, beating expectations of 77 cents per share.
In addition, Washington Federal, Inc. (NASDAQ:WAFD) posted revenue of $169.3 million, easily surpassing the consensus of $143 million. Net interest income for the quarter jumped 18 percent to $151.7 million, while other income climbed 32.8 percent to $17.6 million.
Moreover, loan originations for the quarter reached $2.74 billion, compared to $2.10 billion in the year-ago period. Washington Federal, Inc. (NASDAQ:WAFD) said that commercial loans accounted for 77 percent of the total originations.
9. First Republic Bank (NYSE:FRC)
Number of Hedge Fund Holders: 40
Shares of First Republic Bank (NYSE:FRC) rose nearly two percent on Thursday, July 14, 2022, after beating profit and revenue expectations for the second quarter. The San Francisco-based bank earned $2.16 per share, up from $1.95 per share in the same period of 2021.
Revenue for the quarter advanced nearly 23 percent versus last year to $1.5 billion. Analysts were expecting First Republic Bank (NYSE:FRC) to report earnings of $2.09 per share on revenue of $1.47 billion.
If we look at some other growth indicators, loan originations for the quarter climbed 31.1 percent versus last year to $22 billion, driven by an improvement in single and multi-family lending. Moreover, First Republic Bank (NYSE:FRC) reported that total deposits rose 23 percent on a year-over-year basis to $165.6 billion in the quarter.
8. U.S. Bancorp (NYSE:USB)
Number of Hedge Fund Holders: 40
Shares of U.S. Bancorp (NYSE:USB) marginally moved up in the pre-market trading session on Friday, July 15, 2022, following its mixed financial performance for the second quarter.
U.S. Bancorp (NYSE:USB) earned 99 cents per share, down from $1.28 per share in the year-ago period and behind the consensus of $1.08 per share. On the bright side, the quarterly revenue of $6.012 billion exceeded the consensus of $5.880 billion.
In addition, U.S. Bancorp (NYSE:USB) reported that average total loans for the quarter increased 10.2 percent on a year-over-year basis, while average total deposits rose 6.4 percent.
Speaking on the results, CEO Andy Cecere said in a statement:
“Given strong loan growth and increased uncertainty surrounding the macro-economic outlook, we increased our loan loss reserve reflecting our through-the-cycle risk management approach. As we head into the second half of the year we face an uncertain economic environment. However, we are well positioned for the range of possible outcomes given strong liquidity and capital ratios, our diversified business mix, and our well-established risk management track record.”
7. The PNC Financial Services Group, Inc. (NYSE:PNC)
Number of Hedge Fund Holders: 49
The PNC Financial Services Group, Inc. (NYSE:PNC) managed to beat profit expectations for the second quarter. However, its quarterly revenue missed expectations, sending its shares down nearly 2 percent in the pre-market trading session on Friday, July 15, 2022,
The PNC Financial Services Group, Inc. (NYSE:PNC) reported adjusted earnings of $3.42 per share, topping estimates of $3.14 per share. On the downside, the quarterly revenue of $5.11 billion came in slightly below the consensus of $5.13 billion.
Like The PNC Financial Services Group, Inc. (NYSE:PNC), analysts are also closely watching Citigroup Inc. (NYSE:C), Wells Fargo & Company (NYSE:WFC) and JPMorgan Chase & Co. (NYSE:JPM) following their earnings reports.
6. BlackRock, Inc. (NYSE:BLK)
Number of Hedge Fund Holders: 49
Shares of BlackRock, Inc. (NYSE:BLK) fell in the pre-market trading session on Friday, July 15, 2022, after the investment management giant failed to meet financial expectations for the second quarter. BlackRock, Inc. (NYSE:BLK) blamed the uncertain macro-economic conditions for the weak performance.
BlackRock, Inc. (NYSE:BLK) reported adjusted earnings of $7.36 per share, well below $10.45 per share in the second quarter of 2021. Revenue for the quarter also slipped 6 percent on a year-over-year basis to $4.52 billion. On the other hand, analysts were looking for earnings of $7.90 per share on revenue of $4.65 billion.
Discussing the results, CEO of BlackRock, Inc. (NYSE:BLK), Laurence D. Fink said in a statement:
“The first half of 2022 brought an investment environment that we have not seen in decades. Investors are simultaneously navigating high inflation, rising rates and the worst start to the year for both stocks and bonds in half a century, with global equity and fixed income indexes down 20% and 10%, respectively.”
5. The Bank of New York Mellon Corporation (NYSE:BK)
Number of Hedge Fund Holders: 54
Shares of The Bank of New York Mellon Corporation (NYSE:BK) rose over three percent in the pre-market trading session on Friday, July 15, 2022, following its mixed financial performance for the second quarter.
The Bank of New York Mellon Corporation (NYSE:BK) reported earnings of $1.03 per share, missing expectations of $1.12 per share. On the positive side, revenue for the quarter increased 7 percent on a year-over-year basis to $4.3 billion, ahead of the consensus of $4.17 billion.
Commenting on the results, CEO of The Bank of New York Mellon Corporation (NYSE:BK), Todd Gibbons said:
“Our second quarter results once again demonstrated the strength and resilience of our business model, and we are pleased that our Board of Directors approved an increase of the quarterly cash dividend on our common shares by 9% to $0.37 per share.”
4. Morgan Stanley (NYSE:MS)
Number of Hedge Fund Holders: 61
Shares of Morgan Stanley (NYSE:MS) slightly moved down on Thursday, July 14, 2022, after missing financial expectations for the second quarter. The New York-based bank reported earnings of $1.39 per share, well below $1.85 per share in the comparable period of 2021.
Revenue also fell 11 percent on a year-over-year basis to $13.13 billion. Analysts were expecting Morgan Stanley (NYSE:MS) to report earnings of $1.53 per share on revenue of $13.48 billion.
Morgan Stanley (NYSE:MS) also released its segment-wise sales results. Revenue from the Institutional Securities segment decreased to $6.1 billion in the quarter, from $7.1 billion in the year-ago period. In comparison, Wealth Management revenue slipped to $5.7 billion from $6.1 billion last year, while Investment Management revenue dropped to $1.4 billion from $1.7 billion in the year-ago quarter.
Speaking on the results, CEO James P. Gorman said in a statement:
“Overall the Firm delivered a solid quarter in what was a more volatile market environment than we have seen for some time. Strong results in Equity and Fixed Income helped partially counter weaker investment banking activity.”
3. Citigroup Inc. (NYSE:C)
Number of Hedge Fund Holders: 88
Citigroup Inc. (NYSE:C) surpassed profit and revenue expectations for the second quarter. As a result, its shares rose more than four percent in the pre-market trading session on Friday, July 15, 2022.
Citigroup Inc. (NYSE:C) reported earnings of $2.19 per share, crushing analysts’ average estimate of $1.69 per share. Moreover, the quarterly revenue of $19.64 billion also exceeded the consensus of $18.12 billion
If we look at the performance of flagship segments of Citigroup Inc. (NYSE:C), revenue from the institutional clients group jumped 20 percent to $11.4 billion, while personal banking and wealth management revenue rose 6 percent to $6 billion in the quarter. On the downside, revenue from the legacy franchises declined 15 percent to $1.9 billion.
2. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 93
Shares of Wells Fargo & Company (NYSE:WFC) slightly moved down in the pre-market trading session on Friday, July 15, 2022, after the California-based bank failed to meet financial expectations for the second quarter.
The mortgage lending business of Wells Fargo & Company (NYSE:WFC) was hit by higher interest rates during the quarter. Like its peers, the bank had to trim its mortgage staff due to lower demand.
For the second quarter, Wells Fargo & Company (NYSE:WFC) earned 74 cents per share, down from $1.38 per share in the year-ago quarter. Revenue also decreased to $17.02 billion, from $20.27 billion in the second quarter of 2021. Analysts were looking for a profit of 86 cents per share on revenue of $17.6 billion.
1. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 110
Shares of JPMorgan Chase & Co. (NYSE:JPM) hit a new 52-week low of $106.06 on Thursday, July 14, 2022, after announcing weak profit and sales for the second quarter. The financial services giant earned $2.76 per share, down from $3.78 per share in the year-ago period.
In addition, JPMorgan Chase & Co. (NYSE:JPM) posted revenue of $31.6 billion, up 1 percent from the comparable quarter of 2021. The results missed the consensus of $2.91 per share for earnings and $31.95 billion for revenue.
JPMorgan Chase & Co. (NYSE:JPM) also disclosed its segment-wise sales results. Revenue from the consumer & community banking division slipped 1 percent to $12.6 billion, while corporate & investment bank revenue fell 10 percent to $11.9 billion in the quarter. On the bright side, commercial banking revenue increased 8 percent to $2.7 billion, while asset & wealth management revenue rose 5 percent to $4.3 billion.
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Disclosure: None. 10 Key Quarterly Reports from The Financial Sector is originally published on Insider Monkey.
