Banks Brace for Quarterly Earnings Reports Amidst Economic Uncertainty
As major financial institutions prepare to unveil their quarterly earnings reports, investors are closely monitoring the performance of key players in the banking sector. This week, JPMorgan Chase, Wells Fargo, Citigroup (C), BlackRock, and State Street (STT) are set to kick off the reporting season with anticipation.
| Friday, April 12, 2024 EPS Rev MarketCap | ||||||||
| JPMorgan (JPM) | — | / 4.19 | — | / 41.84B | 563.30B | |||
| Wells Fargo&Co (WFC) | — | / 1.07 | — | / 20.18B | 200.71B | |||
| BlackRock (BLK) | — | / 9.34 | — | / 4.64B | 117.13B | |||
| Citigroup (C) | — | / 1.22 | — | / 20.39B | 116.28B | |||
| State Street (STT) | — | / 1.51 | — | / 3.06B | 22.3B | |||
| Ryohin Keikaku Co (RYKKY) | — | / 0.19 | — | / 1.05B | 4.38B | |||
| Eaton Vance Tax Advantaged Glb Div (ETG) | — | / — | — | / — | 1.37B | |||
| Bank7 (BSVN) | — | / 0.9733 | — | / 21.12M | 248.88M | |||
| Mesabi Trust (MSB) | — | / — | — | / — | 228.42M | |||
| Corus Entertainment (CJREF) | — | / -0.0231 | — | / 228.8M | 116.58M | |||
| Meritage Hospitality (MHGU) | — | / 0.25 | — | / 177.8M | 116.14M | |||
| KULR Technology Group (KULR) | — | / -0.0425 | — | / 3.81M | 107.49M | |||
| First Bancshares (FBSI) | — | / — | — | / — | 59.86M | |||
| First Republic Bank (FRCB) | — | / -2.37 | — | / 469.87M | 8.67M | |||
| ReoStar Energy (REOS) | — | / — | — | / — | 1.59M | |||
| Schmitt (SMIT) | — | / — | — | / — | 117.38K | |||
| Peoples Educational (PEDH) | — | / — | — | / — | 446 | |||
UBS recently raised its price targets on the reporting banks, citing a positive trend in bank stocks following the Q1 conference season. Investors have shown optimism as there have been minimal revisions to net interest income outlooks. However, UBS warns of potential downward revisions if the likelihood of a Federal Reserve rate cut diminishes.
Seaport Research also provided a preview for financial earnings, highlighting improving trends across investment banking, asset management, and deposits. Despite positive indicators, Q1 results may be impacted by FDIC special assessment charges and reserve provisions for credit cards. Nevertheless, the firm raised its price targets for the reporting banks.
Analysts anticipate varied performance among the reporting banks. JPMorgan is expected to see modest earnings growth, while Citigroup may experience a decline in both earnings and revenue. Wells Fargo is projected to face a decline in earnings and revenue, reflecting challenges in the banking landscape.
In the case of investment giants like BlackRock and State Street, attention is also drawn to regulatory scrutiny. Regulators are investigating these firms’ influence on U.S. banks, with a focus on ensuring a passive role in their investments. Additionally, BlackRock’s Larry Fink faces a proxy vote to split his chairman and CEO roles, following challenges from activist investors.
Despite the regulatory landscape and economic uncertainties, analysts remain cautiously optimistic about the sector’s prospects. As banks navigate challenges and opportunities in the current environment, investors will closely monitor earnings reports for insights into the industry’s resilience and outlook.
Shayne Heffernan
