October 11, 2024 11:08 GMT
EQUITIES: Macro Takeaways From US Bank Earnings So Far:
EQUITIES
Markets/FICC:
- JP Morgan: Markets revenue was $7.2 billion, up 8%. Fixed Income Markets revenue was $4.5 billion, flat to the prior year, including outperformance in Currencies & Emerging Markets and lower revenue in Rates.
- Wells Fargo: Markets was up 6% driven by higher revenue in rates products, structured products, and municipals, partially offset by lower revenue in equities
Net interest margins:
- JP Morgan: Net interest income was $23.5 billion, up 3%.
- BNY Mellon: Net Interest Income of 1.0bln, up 3% Y/Y, and up 2% Q/Q. Net interest margin of 1.16%, down 2bps Y/Y, up 1bps Q/Q.
- Well Fargo: Net interest income decreased 11%, due to higher funding costs reflecting customer migration to higher yielding deposit products, and deposit mix and pricing changes, including increased pricing on sweep deposits in advisory brokerage accounts, as well as lower loan balances, partially offset by higher yields on earning assets. Expects net interest income to 9% lower than 2023 for the full year.
The consumer:
- JP Morgan: Home Lending net revenue was $1.3 billion, up 3%, driven by higher net interest income, partially offset by lower servicing and production revenue.
- Wells Fargo: Retail mortgage loan originations of $5.5bln, up from $5.3bln in Q2, but down from $6.4bln this quarter last year. 20% of originations were refinances, the highest rate since Q4 last year and above the 16% seen in this quarter of 2023.
Macro:
- JP Morgan: “Recent events show that conditions are treacherous and getting worse. There is significant human suffering, and the outcome of these situations could have far-reaching effects on both short-term economic outcomes. While inflation is slowing and the U.S. economy remains resilient, several critical issues remain, including large fiscal deficits, infrastructure needs, restructuring of trade and remilitarization of the world."
Keep reading...Show less
279 words