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Macro Takeaways From the US Earnings So Far:

EQUITIES
  • Wells Fargo write on credit quality: nonperforming assets rose 14%, although higher commercial real estate nonaccrual loans were offset by lower residential mortgage nonaccrual loans.
  • Average loans up 2% on the year, driven by higher commercial, industrial and credit card advances, average deposits slipped 7% on the year "reflecting consumer deposit outflows on consumer spending, as well as customer migration to higher yielding alternatives".
  • Home lending down 13% Y/Y, partially due to decline in mortgage banking income driven by lower originations.
  • Markets revenue up 29% Y/Y on higher equities, structured products, credit products, rates and FX, although revenue was down 14% on the quarter.

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