U.S. Banks (XLF) on Watch as JPMorgan (JPM), Wells (WFC) Post Q1 Results
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Price: $191.85 -0.15%
Overall Analyst Rating:
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Dividend Yield: 2.4%
Revenue Growth %: +11.0%
Overall Analyst Rating:
NEUTRAL (
Up)Dividend Yield: 2.4%
Revenue Growth %: +11.0%
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U.S. banks, as represented by ETF Financial Select Sector SPDR (NYSE: XLF), are ticking 0.75 percent lower in early trading Friday following quarterly results from two big names in the sector: JPMorgan (NYSE: JPM) and Wells Fargo (NYSE: WFC).
JPMorgan reported Q1 EPS of $1.59, which included about 18 cents in benefit from loan loss reserves. The Street was looking for EPS of $1.39. Revenue at the bank came in shy of views at $25.8 billion.
Wells Fargo posted Q1 EPS of 92 cents and revs of $21.3 billion, mixed to consensus views calling for EPS of 88 cents and revs of $21.6 billion.
The two generally kick-off the earnings season for banks and financials. Bank of America (NYSE: BAC), Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), Citigroup (NYSE: C), and others will be reporting next week.
Announcements come following announcements of new capital allocation plans toward the middle of last month, just ahead of the end of the first quarter. Many expect to return more value to shareholders via boosted dividends and buyback plans, though some institutions will need to submit another plan to the Fed ahead of approval.
Despite the Dow Jones and S&P 500 trading at or near all-time highs through the first quarter, many banks saw a little drop-off in gains towards the latter part of March. Much of the downside could have come as Q412 growth in the U.S. fell off, eurozone fears flared up again, not to mention that economic data through the middle of last month hinted that the Fed might curb its easing program sooner rather than later, raising rates in the process.
JPMorgan reported Q1 EPS of $1.59, which included about 18 cents in benefit from loan loss reserves. The Street was looking for EPS of $1.39. Revenue at the bank came in shy of views at $25.8 billion.
Wells Fargo posted Q1 EPS of 92 cents and revs of $21.3 billion, mixed to consensus views calling for EPS of 88 cents and revs of $21.6 billion.
The two generally kick-off the earnings season for banks and financials. Bank of America (NYSE: BAC), Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), Citigroup (NYSE: C), and others will be reporting next week.
Announcements come following announcements of new capital allocation plans toward the middle of last month, just ahead of the end of the first quarter. Many expect to return more value to shareholders via boosted dividends and buyback plans, though some institutions will need to submit another plan to the Fed ahead of approval.
Despite the Dow Jones and S&P 500 trading at or near all-time highs through the first quarter, many banks saw a little drop-off in gains towards the latter part of March. Much of the downside could have come as Q412 growth in the U.S. fell off, eurozone fears flared up again, not to mention that economic data through the middle of last month hinted that the Fed might curb its easing program sooner rather than later, raising rates in the process.
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