JPM, MS, C, WFC: A snapshot of the earnings reports from the major banks today

A number of major banking companies reported their earnings results for the third quarter of 2022 on Friday. While some managed to beat expectations, others delivered mixed results. Here’s a recap of their quarterly performances:

JPMorgan

JPMorgan Chase & Co. (NYSE: JPM) reported a 10% year-over-year increase in both reported revenue and managed revenue in Q3 2022. Reported revenue was $32.7 billion while managed revenue was $33.4 billion. The growth in revenue was driven by higher net interest income thanks to the higher interest rates.

Net income dropped 17% YoY to $9.7 billion, or $3.12 per share, due to a net credit reserve build of $808 million. The bottom line was also impacted by net investment securities losses of $959 million which led to a $0.24 drop in EPS. Both revenue and earnings beat market estimates.

Revenues in the Consumer & Community Banking segment increased 14% while in Corporate & Investment Bank, revenues dropped 4%. Commercial Banking revenues were up 21%, driven by higher deposit margins, while Asset & Wealth Management revenues grew 6%, helped by deposits and loans on higher margins and balances.

Shares of JPMorgan were up 2% on Friday.  

Morgan Stanley

Morgan Stanley (NYSE: MS) saw its net revenues drop 12% YoY to $13 billion in Q3 2022. GAAP net income decreased 29% to $2.63 billion while GAAP EPS fell 26% to $1.47. Adjusted EPS declined 25% to $1.53. While earnings beat estimates, revenues fell short.

The company saw revenues decline in its Institutional Securities and Investment Management divisions by 22% and 20% respectively. Wealth Management revenues increased by 3% during the quarter.

Shares of Morgan Stanley were down 5%.  

Citigroup

Citigroup Inc. (NYSE: C) saw revenues increase 6% YoY to $18.5 billion in Q3 2022, driven mainly by the gain on sale of its consumer business in the Philippines. Net income dropped 25% to $3.5 billion mainly due to higher cost of credit resulting from the loan growth in the Personal Banking and Wealth Management division as well as higher operating expenses. Both the top and bottom line numbers surpassed projections.

Revenues in the Institutional Clients Group decreased 5% due to lower revenues across Markets and Banking. Personal Banking and Wealth Management revenues rose 6%, driven by growth in net interest income. Legacy Franchises revenues jumped 66%, mainly due to the gain from the sale of the Philippines consumer business.

Citigroup’s stock was up less than 1%.

Wells Fargo

Wells Fargo & Company (NYSE: WFC) generated revenues of $19.5 billion in Q3 2022, up 4% YoY. Net income decreased 31% to $3.5 billion while EPS dropped 27% to $0.85. Revenues surpassed expectations while earnings missed the mark.

Wells Fargo recorded revenue growth across all its segments. The highest growth of 42% came from Commercial Banking followed by Corporate and Investment Banking which posted revenue growth of 20%. Revenues in Consumer Banking and Lending were up 5% while Wealth and Investment Management revenues rose 1% in the third quarter.

Wells Fargo’s shares were up over 2%.

Next week

Bank of America Corporation (NYSE: BAC) is scheduled to report its third quarter 2022 earnings results on Monday, October 17. Analysts are projecting revenues of $23.5 billion and EPS of $0.77. Goldman Sachs (NYSE: GS) is slated to report its Q3 2022 earnings results on Tuesday, October 18. Analysts are forecasting revenues of $11.4 billion and EPS of $7.69.

Click here to access the infographics of the upcoming earnings reports from major companies