The Q1 earnings season is officially underway, with the major US banks reporting on their performance in the three months to the end of March.
Source: Earnings Calendar Benzinga Pro (14-day free trial)
U.S. Bancorp
U.S. Bancorp (NYSE:USB) reported Q1 EPS of 99c, compared with $1.45 per share in the year-ago period and above the analyst consensus of 94c per share. Return on average assets stood at 1.09% in the period, compared to 1.69% in the same period last year.
Return on average equity (ROE) was 12.7%, compared to 19% in the year-ago period and analyst expectations of 11.5%. Non-interest expenses totaled $3.5 billion in the quarter, up 3.6% YoY and almost in line with the estimated $3.52 billion.
Net interest income was reported at $3.2 billion, up 3.6% YoY and above the expected $3.18 billion. U.S. Bancorp reported a non-interest income of $2.4 billion, up 0.6% YoY and topping the consensus projection of $2.37 billion.
USB is currently up 3.97% vs. the previous day's close.
Source: Earnings Calendar Benzinga Pro (14-day free trial)
Citigroup
Citigroup (NYSE:C) said its Q1 revenue was $19.19 billion, down 2.4% from the same period last year and above the consensus expectations of $18 billion. EPS came in at $2.02.
The bank reported Q1 fixed income revenue of $4.3 billion, down 1.1% YoY and well above the consensus estimates of $3.98 billion. Citi reported equities sales and trading revenue of $1.53 billion in the quarter, down 3.8% YoY and above the estimated $1.14 billion.
Investment banking revenue came in at $1.03 billion, down 43% YoY and short of the analyst estimates of $1.29 billion.
ROE stood at 9% in Q1, down from 17.2% in the year-ago period. Return on average tangible common equity was reported at 10.5%.
Citigroup is currently trading +2.07% higher vs. the previous close.
Morgan Stanley
Morgan Stanley (NYSE:MS) reported Q1 net revenue of $14.80 billion, topping the consensus estimates of $14.19 billion. The adjusted earnings per share (EPS) came in at $2.06.
Institutional Investment Banking revenue came in at $1.63 billion, below the consensus projection of $1.8 billion. Wealth management net revenue stood at $5.94 billion in the period, also below the estimated $6.19 billion.
The bank reported equity underwriting revenue of $258 million, compared to the analysts' expectations of $452.2 million. In addition, fixed Income Underwritingban revenue came in at $432 million, while analysts were looking for $480.3 million.
Return on equity was reported at 14.7%, beating the estimated 12.5%. Return on tangible equity grew 19.8%, compared to expected growth of +16.7%. The bank reported $1.45 trillion in assets under management, missing the estimates of $1.54 trillion.
Morgan Stanley is currently trading 1.83% higher vs. the previous close at $85.67.
Goldman Sachs
Goldman Sachs (NYSE:GS) reported a better-than-expected Q1 net revenue of $12.93 billion, compared to analyst expectations of $11.73 billion. EPS stood at $10.76.
Investment banking revenue totaled $2.13 billion in the quarter, missing the consensus projection of $2.28 billion. Trading revenue stood at $7.87 billion, well above the expected $5.84 billion. Equities sales and trading revenue came in at $3.15 billion, also above the estimates of $2.73 billion.
The report showed an annualized ROE growth of 15%, while analysts projected 12.5% growth. In addition, the bank reported $2.39 trillion in assets under management (AUM), above the consensus estimates of $2.23 trillion.
Shares of Goldman Sachs are trading 0.49% higher compared to the previous close but previously traded $10 higher at $333.06 shortly after the market opened.
Wells Fargo
Wells Fargo (WFC: NYSE) reported Q1 revenue of $17.59 billion, down 5.1% from the year-ago period and compared to the analyst estimates of $17.77 billion. The company reported EPS of 88c, slightly topping the estimated EPS of 80c per share.
Before market open, WFC reported consumer banking and lending revenue of $8.56 billion in the period, down 1.1% YoY, though above the expected $8.31 billion. Commercial banking revenue totaled $2.33 billion, beating the analyst expectations of $2.17 billion.
The corporate and investment banking revenue was reported with $3.47 billion, down 3.7% YoY and missing the analyst expectations of $3.7 billion. However, wealth & investment management revenue totaled $3.76 billion, up 6% from the same period last year and just above the consensus projection of $3.73 billion.
The bank reported an ROE of 8.4%, down from 10.3% in the same quarter last year. However, return on tangible common equity stood at 10% in Q1, above the expected 9.14%.
WFC also said that the situation in Europe "adds additional risk to the downside." Shares of WFC are trading -6.32% lower than yesterday's close and near support from March 2022.
Alexander Voigt is the Chief Executive Officer and founder of daytradingz.com. He does not hold any positions in the mentioned stocks.
