JPMorgan joins rivals including Wells Fargo & Co.in cutting the outlook for traditional lending businesses that have benefited from higher rates, which they passed on to borrowers while holding deposit rates low.
Wells Fargo became the third big bank to report contracting net interest margins, a closely watched metric that measures the difference between how much a bank is charging on its loans and how much it pays for deposits. If the Fed cuts only once, net income for the year should be more than $57.5 billion, Piepszak said.
And even as investors have been concerned over the impact of the US-China trade spat on global growth, JPMorgan Chief Executive Officer Jamie Dimon remained bullish about the economy. That compares to the mean estimate of sell-side analysts of $1.15 a share, according to data from Refinitiv. Annualized return on equity was 13.3%. The company had revenue of $21.58 billion for the quarter, compared to the consensus estimate of $20.95 billion. Analysts surveyed by FactSet expected earnings per share of $1.17. That's down 4% from $12.5 billion in the second quarter past year and a 2% decline from the first quarter of 2019.
Wells Fargo has been under a regulatory microscope since revelations that the bank had opened potentially millions of unauthorized accounts in 2016.
Wells Fargo has been leaning on cost cuts to stabilize its bottom line amid sluggish revenue in the wake of sales-practice scandals that spread to each of its primary business segments and claimed two chief executives.Читайте также: Pris dans la tourmente, Rugy démissionne et dénonce un "lynchage"
Executives warned on a call with analysts that expenses will come in at the high end of its forecasted range for 2019 and that 2020 expenses will likely be flat with 2019, instead of lower as previously expected. The exact expected net interest income depends on the number of cuts, the bank said, because that will affect rates on financial products like loans and mortgages. The figure dropped 11 basis points to 2.82% in the most recent quarter.
Equity trading was a bright spot here for Goldman, however, as revenue increased by 6%, its second highest quarterly performance in four years. The bank is in its fourth month without a permanent chief executive following Timothy Sloan's retirement in March.
Institutional client revenue, which includes trading, slipped 3%, while investment banking revenue was down 9%. NII accounted for about half the New York-based company's revenue a year ago and has countered a slump in trading, which fell for a fourth straight period in the second quarter.
Q2 net interest margin of 2.82% falls from 2.91% in Q1 and 2.93% in Q2 2018. As a group, analysts anticipate that Wells Fargo & Co will post 4.62 EPS for the current fiscal year. The shares were sold at an average price of $46.51, for a total transaction of $1,316,419.04. Total net revenue fell 2 per cent to US$9.46 billion.При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
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