JPMorgan Chase (JPM) reported Q2 earnings Friday of $6.12 per diluted share, up from $4.75 a year earlier. Analysts polled by Capital IQ expected $4.51. Net revenue for the quarter was $50.20 billion, compared with $41.31 billion a year earlier. Analysts surveyed by Capital IQ expected $45.66 billion.
JPMorgan Q2 Earnings, Net Revenue Rise Read Post »
Higher interest rates continue to pressure some of the country’s biggest banks, and their lending machines are showing signs of consumer weakness. JPMorgan Chase and Wells Fargo both reported a drop in quarterly profit Friday. Citigroup posted a rise in profit, driven in part by the bank’s cost-cutting measures, but set aside more provisions for potential losses in their credit-card business. JPMorgan’s second-quarter profit declined 9% year-over-year to $13.1 billion. That figure excludes an $8 billion gain the bank received on an exchange of its shares of Visa and other one-time items. The bank’s net interest income, a measure of the difference between what banks pay out on deposits and charge on loans, rose to $22.9 billion, up 5% versus a year earlier. JPMorgan Chief Executive Jamie Dimon repeated his view that interest rates could wind up staying higher than some economists have forecast. “Market valuations and credit spreads seem
Big Banks Continue to Feel Pressure From Higher Rates Read Post »
Major banks increase their net charge-offs, or the debt they’re owed but don’t expect to recover. JPMorgan Chase charge-offs rise $820 million in 2Q to $2.2 billion, as more credit cards were opened and credit conditions continued to normalize. Wells Fargo net charge-offs rise 71% in 2Q to $1.3 billion, with charge-offs from commercial real estate loans increasing, particularly in its office portfolio, though commercial and industrial loans were a drag too, with higher charge-offs recorded in its credit card portfolio. Citigroup’s cost of credit rose $1.5 billion to $2.3 billion on a 59% jump in credit losses from higher interest rates and persistent inflation prompting the bank to lift its provision for loan losses.
Big Banks Writing Off More Bad Debt Read Post »
Citigroup Inc (NYSE:C) reported a second-quarter fiscal 2024 revenue growth of 4% year-over-year to $20.14 billion, beating the analyst consensus estimate of $20.07 billion. GAAP EPS of $1.52 beat the analyst consensus estimate of $1.39. Net credit losses were $2.28 billion, up 52% year-over-year. Services revenue grew 3% year-over-year to $4.7 billion, primarily reflecting strength in Securities Services and the impact of continued underlying momentum in Treasury and Trade Solutions. Markets revenue increased by 6% Y/Y to $5.1 billion, driven by Equity market revenue growth. Banking revenue increased 38% Y/Y to $1.6 billion, driven by Investment Banking and Corporate Lending. U.S. Personal Banking revenue grew 6% Y/Y to $4.9 billion, driven by higher net interest income. Wealth revenue grew 2% to $1.8 billion, driven by a 13% increase in non-interest revenue. All other revenue declined 22% year over year to $2.0 billion, primarily due to closed exits and winddowns and
Citigroup Q2 Earnings: Personal Banking Growth, Profit Growth, In-line Outlook And More Read Post »
Citigroup (C) on Friday posted better-than-expected results for the second quarter, aided by a surge in investment banking revenue. Earnings rose to $1.52 a share for the quarter through June 30 from $1.33 a year earlier, while revenue increased 4% to $20.14 billion, topping Wall Street’s views for $1.41 and $20.09 billion, respectively. The company said revenue growth included a roughly $400 million gain tied to an exchange of shares in credit card giant Visa (V) completed during the quarter. “Our results show the progress we are making in executing our strategy and the benefit of our diversified business model,” Citigroup Chief Executive Jane Fraser said. “Markets had a strong finish to the quarter leading to better performance than we had anticipated.” Banking revenue surged 38% to $1.63 billion, led by a 60% jump in investment banking amid “strong” issuance activity in debt capital markets and an increase in initial
Citigroup Second-Quarter Results Top Views Amid Jump in Investment Banking Revenue Read Post »
Delta Air Lines shares tumbled 4.9% after its second-quarter profit dove from a year earlier, putting pressure on American Airlines Group, Spirit Airlines and JetBlue AIrways. Shares of Delta were trading around $44.57. American Airlines declined 4.7% to $10.63, while Spirit was down 2.1% at $2.99, and JetBlue edged down 0.9% to $5.67. Delta on Thursday reported second-quarter profit that fell 29% as its U.S. market saw more supply of seats than demand, as well as higher fuel costs at large. The company is the first airline to report second-quarter earnings
Airline Stocks Face Turbulence After Delta’s Profit Tumbles Read Post »
Delta and stronger airlines are starting to see spill over from the problems plaguing carriers in the budget sector of the industry, JP Morgan analysts write. Troubled carriers, including budget airlines and Southwest, are inclined to maximize flying capacity when demand is high to compensate for losses at slower times of year, the analysts write. “Much like a swimmer that has ventured too far from shore, airlines under duress can be sloppy on the pricing front as they flail about for oxygen.” Delta CEO Ed Bastian says he expects to regain pricing power as airlines throttle back flying plans, but other analysts are skeptical cuts will be big enough. “Maybe the industry stares those losses in the face and makes structural changes, but if history repeats itself, the more likely outcome is short-term tweaks in hopes of drastic change,” Melius Research analysts
Delta Isn’t Immune to Contagion From the Struggles of Budget Airlines Read Post »
Boeing Notified Some 737 Max Customers in Recent Weeks That Aircraft Due for Delivery in 2025 and 2026 Face Additional Delays – Bloomber
Apple (AAPL) is looking to ship at least 90 million iPhone 16s in the second half of the year, driven by demand for the AI services from its new lineup, Bloomberg reported Wednesday. The company told partners and suppliers that it’s aiming for about 10% growth in shipments of new iPhones compared to their predecessors, a person familiar with the matter told Bloomberg. Apple shipped about 81 million iPhone 15s in the latter half of 2023. Apple expects the addition of new artificial intelligence tools to drive demand for iPhone 16 when it launches later this year. Earlier today, the company said it would include Microsoft-backed (MSFT) OpenAI’s ChatGPT into upcoming updates of iPhones as part of upgrades called Apple Intelligence.
Apple Looking to Ship 10% More New IPhones in 2024 Read Post »
Netflix’s upcoming earnings should come with strong net subscriber additions and monetization initiatives, KeyBanc Capital Markets analysts say in a research note. The streaming giant is priced at a $1 a month premium to competitors following recent U.S. price increases from Max, Peacock and Paramount+, meaning the likelihood of a price increase has improved. Netflix will not likely guide for quantitative net additions, but could raise its annual revenue growth outlook to 14% to 16% from 13% to 15% previously given its first-half net addition momentum, the analysts say. Shares fall 0.4% to $682.79.
Netflix Could Raise Revenue Growth Outlook on Subscriber Additions Read Post »
Delta Air Lines is scheduled to report second-quarter results before the market opens Thursday. Here’s what you need to know. PROFIT: The airline is expected to post a profit of $1.57 billion for the quarter that ended last month, down from $1.83 billion in the same quarter a year ago, according to the consensus estimate of six analysts polled by FactSet. EARNINGS: Adjusted earnings, which strip out one-time items, are projected to be $2.37 a share, according to 15 analysts surveyed by FactSet. REVENUE: Revenue is forecast to rise to $15.45 billion from $14.61 billion in the year-ago quarter, according to the estimates of 11 analysts polled by FactSet. Shares slipped 2.7% during the quarter and were recently trading at $46.81.
Delta 2Q Revenue Expected to Climb on Steady Demand — Earnings Preview Read Post »
Costco is raising its membership fee for the first time since 2017. Starting in September, the new cost will be $65 a year for individuals and $130 for executive memberships, up from $60 and $120. Shares of Costco rose 2.8% in after-hours trading.
Costco Raises Membership Fee Read Post »