X

Bank earnings: A summary of the major banks’ Q4 2023 earnings results

Major banks Goldman Sachs (NYSE: GS) and Morgan Stanley (NYSE: MS) reported their fourth quarter 2023 earnings results on Tuesday. Their peers JPMorgan (NYSE: JPM), Citigroup (NYSE: C), Wells Fargo (NYSE: WFC), and Bank of America (NYSE: BAC) posted their Q4 results on Friday. Here’s a summary of how these leading banks performed in the quarter:

Goldman Sachs

Goldman Sachs reported revenues of $11.32 billion for the fourth quarter of 2023, which increased 7% year-over-year and beat estimates of $10.8 billion. Net income grew 58% to $1.87 billion while EPS rose 65% to $5.48. Analysts had predicted EPS of $3.33 for the quarter.

The company saw double-digit revenue growth for its Asset & Wealth Management and Platform Solutions segments while its Global Banking & Markets segment witnessed a 3% decline in revenue. Net interest income fell 35% YoY to $1.34 billion while non-interest revenues grew 17% to $9.97 billion.

Goldman Sachs returned $1.92 billion of capital to shareholders in the fourth quarter, which includes $1 billion in share repurchases and $922 million in dividends.

Morgan Stanley

Morgan Stanley’s revenue inched up 1% to $12.9 billion in Q4 2023 compared to the same period a year ago and surpassed projections of $12.8 billion. Net income dropped 32% to $1.51 billion in the quarter. EPS fell 33% to $0.85, missing estimates of $1.04.

The company saw revenues remain flat on a year-over-year basis in its Wealth Management and Investment Management segments during the fourth quarter, while revenue in its Institutional Securities division grew 3%.

JPMorgan

In Q4 2023, JPMorgan’s net revenue increased 12% YoY to $38.5 billion, but fell short of estimates. Adjusted EPS of $3.97 surpassed projections.

Citigroup

Citigroup saw revenue decline 3% YoY to $17.4 billion in Q4 2023. The company reported a net loss of $1.16 per share caused by one-time charges. Excluding these charges, EPS would have been $0.84. Both the top and bottom line numbers missed estimates.

Wells Fargo

Wells Fargo reported revenue of $20.48 billion for Q4 2023, which was up 2% from the year-ago quarter and above projections. EPS grew 15% to $0.86.

Bank of America

In Q4, Bank of America’s revenues decreased 10% YoY to $22 billion and missed estimates. EPS fell 59% to $0.35 but managed to surpass projections.

Categories: Analysis Finance
Related Post