U.S. Movers: BlackRock, Citigroup, JPMorgan Chase, Wells Fargo

Scott Peters
12 Apr, 2024
New York City

JPMorgan Chase declined 4.9% to $185.90 after the bank reported strong results in the March quarter, but investors sold stock on the lack of improvement in its net interest income. 

JPMorgan reported net revenue in the first quarter increased 9% to $41.9 billion from $38.3 billion, net income rose 6% to $13.4 billion from $12.6 billion, and diluted earnings per share advanced 8% to $4.44 from $4.10 a year ago. 

The company provisioned $1.9 billion for credit losses, 17% smaller than a year ago, indicating an improving loan portfolio. 

Customers continue to shift deposits to higher-yielding assets, and bank deposits declined 7% in the quarter, excluding First Republic's acquisition. 

The company also paid $725 million in special assessment charges to the FDIC to cover costs linked to bank failures last year. 

Wells Fargo increased 0.1% to $56.78 after the bank reported better-than-expected earnings and revenue for the first quarter. 

Total revenue in the first quarter increased to $20.86 billion from $20.73 billion, net income fell to $4.6 billion from $4.99 billion, and diluted earnings per share declined to $1.20 from $1.23 a year ago. 

Net interest income decreased 8% from a year ago to $12.2 billion from $13.3 billion due to the impact of higher interest rates on funding costs, including the impact of customer migration to higher-yielding deposit products as well as lower loan balances, partially offset by higher yields on earning assets. 

Average loans in the quarter eased to $928 billion from $948 billion, and average deposits fell to $1.34 trillion from $1.36 trillion a year ago, respectively. 

Provision for credit losses fell 22% to $938 billion from $1.2 trillion a year ago. 

The company repurchased 112.5 million of its own shares for $6.1 billion in the quarter. 

BlackRock decreased 1.3% to $775.51 after the financial service company reported better-than-expected revenue after fees and assets under management climbed. 

Citigroup decreased 0.6% to $60.33 after the bank said revenue declined 2% to $21.1 billion and net income dropped 27% to $3.4 billion, or $1.57 per share. 

Fixed-income trading revenue fell 10% to $4.2 billion, investment banking revenue rose 35% to $903 million, and services revenue, which supports the needs of global corporations, rose 8% to $4.8 billion.