Election Rally Lifts JPMorgan, Wells Fargo and BofA Profits

Mukesh Buch
13 Jan, 2017
New York City

Boeing secured order worth $23 billion for 205 planes from India-based low-cost airliner SpiceJet. Bank of America net surged 48%. BlackRock net fell but raised quarterly dividend. JPMorgan net surged 24% after trading revenue soared. Wells Fargo net declined 5%.

[R]12:05 PM New York – Boeing secured order worth $23 billion for 205 planes from India-based low-cost airliner SpiceJet. Bank of America net surged 48%. BlackRock net fell but raised quarterly dividend. JPMorgan net surged 24% after trading revenue soared. Wells Fargo net declined 5%.[/R]

Tollbooth Index increased 19.33 or 0.2% to 11,362.85.

Earnings Review

Boeing Co ((BA)) gained 71 cents to $159 after the commercial and defense airplanes maker secured new order for 100 additional 737 MAX 8 planes from India-based low-cost airline operator SpiceJet Ltd, and the airline may order up to 205 planes.

In 2014, SpiceJet and Boeing had announced an order for 42 planes, including option for 50 more 737 Max jets, that could total 205 planes, the Boeing said. The deliveries scheduled between 2018 and 2024.

The deal of 205 jet planes worth about at list prices of $23 billion, the airline said, before discounts that are customary for large orders.

""We spent considerable amount of time negotiating and finalizing the commercial terms, including maintenance,"" and ""It is important for us to get the entire commercial terms right,"" Chairman Ajay Singh said.

Singh added SpiceJet does not need to dilute any equity to pay for the order as the carrier had sufficient resources within the company.

Bank of America Corp ((BAC)) rose 21 cents to $23.13 after the financial services provider reported revenues in the fourth-quarter ending in December grew 2% from a year ago to $20 billion.

Net income in the quarter surged 48.3% to $4.3 billion or 40 cents per diluted share compared to the $2.9 billion or 41 cents per share in the same quarter last year.

The bank said loan balances gained $19 billion to $915.9 billion and deposit balances increased $64 billion to $1.26 trillion while client balances increased $50.5 billion to more than $2.5 trillion.

Provision for credit losses declined to $774 million and net charge-offs declined to $880 million.

The financial services provider said active users in mobile banking jumped 16% to 21.6 million and Total credit/debit card spending up 6%.

BlackRock, Inc ((BLK)) increased 1.4% or $5.20 to $383.49 after the investment management said total revenues in the fourth-quarter ending in December rose 1% from a year ago to $2.9 billion.

Net income in the quarter fell 1% to $851 million or $5.13 per diluted share compared to the $861 million or $5.11 per share in the same quarter last year.

BlackRock said as of December 31, assets under management jumped 11% to $5.15 trillion and long-term net inflows in the quarter were $87.8 billion.

The company raised 9% in quarterly dividend to $2.50 per share along with additional 6 million of share repurchases.

JPMorgan Chase & Co ((JPM)) gained 1% or 89 cents to $87.13 after the banking and investment services provider said revenues in the fourth-quarter ending in December increased 2% from a year ago to $24.3 billion.

Net income in the quarter surged 24% to $6.7 billion or $1.71 per diluted share compared to the $5.4 billion or $1.32 per share in the same quarter last year.

The lender said provision for credit losses in the quarter was $864 million and fixed-income trading revenue soared 31% to $3.37 billion while equities-trading revenue jumped 8.1% to $1.15 billion.

Active mobile customers in the quarter advanced 16% to 26.5 million and credit card sales volume jumped 14% and merchant processing volume increased 10%.

JPMorgan raise $1.2 trillion of capital for corporate clients and non-U.S. government entities.

“Our results this quarter were a strong end to another record year,” chairman and chief executive officer Jamie Dimon said.

Wells Fargo & Co ((WFC)) advanced 2.3% or $1.26 to $55.78 after the banking, insurance and brokerage services provider reported revenues in the fourth-quarter ending in December were flat from a year ago at $21.6 billion.

Net income in the quarter declined 5.4% to $5.3 billion or 96 cents per diluted share compared to the $5.6 billion or $1 per share in the same quarter last year.

Wells Fargo said total average deposits for fourth quarter of 2016 were $1.3 trillion, 2% increase from the prior quarter.

Client assets in retail brokerage segment jumped 7% to $1.5 trillion and client assets in wealth management business increased 3% to $231 billion from prior year.

Total assets under management fell 2% to $482 billion.