5 Key Earnings Reports from The Financial Sector

In this article, we discuss the 5 key earnings reports from the financial sector. If you want to read our detailed analysis of these companies, go directly to the 10 Key Earnings Reports from The Financial Sector.

5. Truist Financial Corporation (NYSE:TFC)

Number of Hedge Fund Holders: 34

Shares of Truist Financial Corporation (NYSE:TFC) slightly moved down on Tuesday, January 18, 2022, despite announcing better-than-expected profit for the fourth quarter. The North Carolina-based bank holding company reported adjusted earnings of $1.38 per share, up 17 percent from the comparable period of 2020.

Revenue for the quarter came in at $5.6 billion, nearly unchanged from last year. Analysts were expecting Truist Financial Corporation (NYSE:TFC) to post earnings of $1.25 per share on revenue of $5.6 billion.

Speaking on the results, CEO of Truist Financial Corporation (NYSE:TFC), Bill Rogers, said:

“The quarter reflects improved revenue momentum and excellent credit quality, as well as significant capital deployment, and the achievement of our cost savings targets. Our diverse business model and progress on the merger, combined with a better economic environment drove stronger 2021 performance compared with 2020.”

4. The PNC Financial Services Group, Inc. (NYSE:PNC)

Number of Hedge Fund Holders: 41

Shares of The PNC Financial Services Group, Inc. (NYSE:PNC) fell more than two percent on Tuesday, January 18, 2022, even though the bank holding company beat profit and sales expectations for the fourth quarter.

The PNC Financial Services Group, Inc. (NYSE:PNC) reported adjusted earnings of $3.68 per share, up from $3.27 per share in the same period last year. Revenue came in at $5.127 billion, compared to $4.208 billion in the year-ago quarter. The results surpassed analysts’ average estimate of $3.22 per share for earnings and $5.14 billion for revenue.

In addition, The PNC Financial Services Group, Inc. (NYSE:PNC) reported a net interest income of $2.86 billion for the quarter versus $2.42 billion for the same period last year. Moreover, the noninterest income also increased to $2.27 billion, compared to $1.78 billion for the comparable period of 2020.

Discussing the results, CEO of The PNC Financial Services Group, Inc. (NYSE:PNC), Bill Demchak, said:

“2021 was a pivotal year for PNC. We delivered solid financial results, closed and converted BBVA USA in less than a year, launched our overdraft solution Low Cash ModeSM and announced an $88 billion plan to expand economic opportunities for minorities and low- and moderate-income individuals and communities.”

3. The Charles Schwab Corporation (NYSE:SCHW)

Number of Hedge Fund Holders: 59

Shares of The Charles Schwab Corporation (NYSE:SCHW) fell more than three percent on Tuesday, January 18, 2022, after posting lower-than-expected financial results for the fourth quarter.

The Charles Schwab Corporation (NYSE:SCHW) earned 86 cents per share on an adjusted basis, compared to 74 cents per share in the year-ago quarter. Analysts were looking for earnings of 88 cents per share.

In addition, The Charles Schwab Corporation (NYSE:SCHW) posted revenue of $4.71 billion, up 13 percent from the comparable period of 2020 but slightly below the consensus forecast of $4.79 billion. The company ended the quarter with total assets of $667 billion, up 22 percent on a year-over-year basis.

Commenting on the results, CFO of The Charles Schwab Corporation (NYSE:SCHW),  Peter Crawford, said in a statement:

“The operating environment, our own strategic and competitive success, and unprecedented levels of client engagement and activity all came together in 2021 to help us deliver impressive financial performance.”

2. Bank of America Corporation (NYSE:BAC)

Number of Hedge Fund Holders: 72

Shares of Bank of America Corporation (NYSE:BAC) jumped more than four percent in the pre-market trading session on Wednesday, January 19, 2022, after delivering impressive financial results for the fourth quarter.

Bank of America Corporation (NYSE:BAC) reported earnings of 82 cents per share, up from 59 cents per share in the comparable period of 2020. Revenue for the quarter jumped 9.8 percent on a year-over-year basis to $22.16 billion. Analysts were looking for earnings of 77 cents per share on revenue of $22.18 billion.

Net interest income for the quarter jumped 11 percent versus last year to $1.2 billion, while noninterest income rose 8 percent to $10.7 billion. In addition, the average deposits also climbed 16 percent to $2.0 trillion in the quarter.

If we look at the sales performance of Bank of America Corporation (NYSE:BAC)’s key business segments, Consumer Baking revenue for the quarter rose eight percent versus last year to $8.9 billion, mainly driven by higher net interest and card income.

In comparison, Global Wealth and Investment Management generated recorded revenue of $5.4 billion, translating to a year-over-year surge of 16 percent. In addition, Global Banking revenue climbed 24 percent to $5.9 billion, while Global Markets revenue slipped two percent to $3.8 billion in the quarter.

Speaking on the results, CEO of Bank of America Corporation (NYSE:BAC), Brian Moynihan, said in a statement:

“Our fourth-quarter results were driven by strong organic growth, record levels of digital engagement, and an improving economy. We grew loans by $51 billion and added $100 billion of deposits during the quarter, further strengthening our position as the leader in retail deposits.”

1. The Goldman Sachs Group, Inc. (NYSE:GS)

Number of Hedge Fund Holders: 74

Shares of The Goldman Sachs Group, Inc. (NYSE:GS) fell to a nearly seven-month low on Tuesday, January 18, 2022, after announcing disappointing profit for the fourth quarter, primarily due to weak trading activity.

The Goldman Sachs Group, Inc. (NYSE:GS) earned $10.81 per share, down from $12.08 per share in the year-ago quarter and below expectations of $11.77 per share. However, the quarterly revenue of $12.64 billion was up eight percent versus last year and ahead of analysts’ average estimate of $12.04 billion.

Speaking on the results, CEO of The Goldman Sachs Group, Inc. (NYSE:GS), David Solomon, said:

“2021 was a record year for Goldman Sachs. The firm’s extraordinary performance is a testament to the strength of our client franchise and people. Moving forward, our leadership team remains committed to growing Goldman Sachs, diversifying our businesses and delivering strong returns for shareholders.”

You can also take a peek at 10 Best Epicenter Stocks To Buy Now and Top 10 Stock Picks of Thomas Bancroft’s Makaira Partners.

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