Citigroup, JP Morgan, Wells Fargo Earnings Lift Market Sentiment

Mukesh Buch
12 Oct, 2018
New York City

Citigroup reported better-than-expected quarterly profit on higher bond trading. First Republic Bank beat profit estimates. JP Morgan Chase revenue jumped above expectations. Wells Fargo revenues rebound after the bank revamps operations.

[R]12:55 PM New York City, New York – Citigroup reported better-than-expected quarterly profit on higher bond trading. First Republic Bank beat profit estimates. JP Morgan Chase revenue jumped above expectations. Wells Fargo revenues rebound after the bank revamps operations.[/R]

Tollbooth Index jumped 226.01 or 1.5% to 15,598.38 but for the year-to-date soared 13.4%.

Earnings Review

Citigroup Inc ((C)) increased 1.7% or $1.16 to $69.54 after the investment bank and financial services provider reported total revenues in the third-quarter ending in September were nearly flat from a year ago at $18.4 billion.

Net income in the quarter surged 12% to $4.6 billion or $1.73 per diluted share from $4.1 billion or $1.42 in the same quarter last year.

The bank said revenues from institutional clients business dropped 2% from a year ago to $9.24 billion and revenues in the global consumer banking segment jumped 2% to $8.65 billion.

First Republic Bank ((FRC)) gained 1.7% or $1.51 to $92.35 after the banking services provider said revenues in the third-quarter ending in September soared 14.7% from a year ago to $768.8 million.

Net income in the quarter jumped 6.8% to $213.5 million or $1.19 per diluted share from $200 million or $1.14 in the same quarter last year.

The bank said total wealth management assets as of September 30, surged 29.2% to $131from a year ago.

JPMorgan Chase & Co ((JPM)) rose 18 cents to $108.31 after the investment bank and financial service provider reported total revenues in the third-quarter ending in September jumped 5% from a year ago to $27.8 billion.

Net income in the quarter surged 24% to $8.4 billion or $2.34 per diluted share from $6.7 billion or $1.76 in the same quarter last year.

The lender said average core loans soared 6% and deposits advanced 4% to $674 billion and as of September 30, assets under management surged 7% to $2.1 trillion.

The investment bank said strong profit was driven by higher rates, including lower markets net interest income, as well as loan and deposit growth.

PNC Financial Services Group Inc ((PNC)) declined 5.1% or $6.77 to $124.85 after the financial services provider stated total revenues in the third-quarter ending in September increased 1% from a year ago to $4.4 billion.

Net income in the quarter jumped 30% to $1.3 billion or $2.82 per diluted share from $1 billion or $2.16 in the same quarter last year.

The financial services provider said average loans in the quarter advanced 3.1% to $137.4 billion and average deposits rose 0.6% to $88.1 billion.

Wabash National Corp ((WNC)) tumbled 22.1% or $3.71 to $13.06 after the commercial vehicles maker forecasted revenues in fiscal third-quarter ending in September in the range of $550 million and $555 million from $425 million in the same period a year ago.

The diversified industrial manufacturer forecasted net income in the quarter between $3.5 million and $5.5 million from $18.9 million in the same period a year ago and diluted earnings per share in the range of 6 cents to 9 cents from 30 cents per diluted share in the same period a year ago.

Wells Fargo & Co ((WFC)) increased 1.1% or 57 cents to $52.01 after the financial services provider reported total revenues in the third-quarter ending in September rose 0.5% from a year ago to $21.9 billion.

Net income in the quarter soared 33.3% to $6 billion or $1.13 per diluted share from $4.5 billion or 83 in the same quarter last year.

The lender said average deposits in the quarter dropped 3% to $1.3 trillion and average loans fell 1% to $939.5 billion.

""We saw positive business trends in the third quarter, including growth in primary consumer checking customers, increased debit and credit card usage,"" said chief executive officer Tim Sloan.