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Market Update

Citigroup, JPMorgan, Wells Fargo Report Improving Profits


Author: Mukesh Buch
ticker.com
Last Update: 12:45 PM EDT April 13 2018

12:35 PM New York City, New York Citigroup profit beat estimates. First Horizon reported strong first-quarter results. First Republic Bank jumped on better-than-expected results. JPMorgan reported record profit on lower taxes. Wells Fargo profit may be trimmed by settlement expenses.

Tollbooth Index slumped 82.03 or 0.6% to 14,596.54 and for the year-to-date eased to 6% increase.

Earnings Review

Citigroup Inc (C)) declined 3% or $2.16 to $69.97 after the financial services provider reported revenues in the first-quarter ending in March jumped 3% from a year ago to $18.9 billion.

Net income in the quarter surged 12.1% to $4.6 billion or $1.68 per diluted share from $4.1 billion or $1.35 in the same quarter last year.

Citigroup said as of March 31, deposits in the quarter jumped to $1 trillion and total loans soared 7% to $673 billion and allowance for loan losses increased 1.9% to $12.4 billion from a year ago period.

First Horizon National Corp (FHN) dropped 2.9% or 56 cents to $18.44 after the regional bank operator said total revenues in the first-quarter ending in March soared 43% from a year ago to $437.2 million.

Net in the quarter swung to profit $90.6 million or 27 cents per diluted share from a loss of $52.8 million or 20 cents in the same quarter last year.

First Republic Bank (FRC) jumped 2.2% or $1.94 to $92.18 after the private banking and wealth management services provider stated revenues in the first-quarter ending in March surged 19.9% from a year ago to $720.9 million.

Net income in the quarter jumped 12.6% to $199.1 million or $1.13 per diluted share from $194.3 million or $1.10 in the same quarter last year.

The lender said as of March 31, total deposits in the quarter soared 16.4% to $71.3 billion and total loans jumped 20.9% to $65.2 billion and wealth management assets surged 25.4% to $113 billion.

JPMorgan Chase & Co (JPM) slumped 2.5% or $2.80 to $110.58 after banking, treasury and securities services reported revenues in the first-quarter ending in March surged 10% from a year ago to $28.5 billion.

Net income in the quarter soared 35% to $8.7 billion or $2.37 per diluted share from $6.4 billion or $1.65 in the same quarter last year.

Revenues in the treasury services business soared 14% and revenue in the securities services segment surged 16% and average loan balances jumped 6% to $202 billion and as of March 31, assets under management advanced 10% to $2 trillion.

Wells Fargo & Co (WFC) plunged 2.9% or $1.56 to $51.14 after the banking and investment services provider said revenues in the first-quarter ending in March fell 1.8% from a year ago to $21.9 billion.

Net income in the quarter jumped 5.4% to $5.9 billion or $1.12 per diluted share from $5.6 billion or $1.03 in the same quarter last year.

The lender said average deposits in the quarter fell $2 billion to $1.3 trillion and average loans slipped 1% to $951 billion and average deposits were flat at $1.30 trillion.

Wells Fargo edged lower on the worries that the increase in profit may be trimmed by the settlement costs with regulators.

The consumer banking confirmed that the U.S. Federal regulators had offered settlement offer for $1 billion linked to auto and mortgage loan related violations.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc