In This Article:
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Of the big banks that reported earnings on Friday, half of them exceeded revenue expectations.
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Although some bank stocks have continued to drop, others are on the way up after a rough couple of days for the stock market.
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Bank of America will be releasing its third-quarter earnings report on Oct. 15.
Rising interest rates have beaten up stocks over the past few days, and the earnings reports of banks are being closely watched for clues as to whether this is a one-time blip or the start of a longer decline.
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Banking giants like Citigroup, JPMorgan Chase and Wells Fargo released their third-quarter earnings reports Oct. 12, 2018, and Bank of America will release its report on Oct. 15.
Two of the big banks that reported earnings before the bell on Friday exceeded revenue expectations, a good sign for the general market. Three of the five banks covered here also saw their stock prices rise by closing time on Oct. 12, which was in line with the overall stock market performance after recent drops.
Click to check out the best bank stocks for investors.
Citigroup Earnings and Stock
Citigroup reported earnings of $1.73 per share, higher than analysts’ estimates of $1.69. Revenue was $18.389 billion, compared to estimates of $18.501 billion.
The stock is up over 6 percent since the last earnings report in July and, as of close on Oct. 12, 2018, it went up 2.14 percent for the day. Citigroup CEO Michael Corbat has promised to control costs while increasing revenue, and it seems to be working.
JPMorgan Chase Earnings and Stock
JPMorgan Chase reported third-quarter earnings per share of $2.34, higher than the $2.26 analysts expected. Revenue was $27.82 billion, also higher than the $27.4 billion that analysts expected.
CEO Jamie Dimon expressed his short-term optimism and longer-term caution in a statement: “The U.S. and the global economy continue to show strength, despite increasing economic and geopolitical uncertainties, which at some point in the future may have negative effects on the economy.”
JPM stock did fall on Oct. 12, 2018, down 1.09 percent for the day at closing time. The consensus recommendation among analysts for JPMorgan Chase stock is a buy, with seven analysts rating the stock a strong buy, one analyst rating it a buy, and seven rating it a hold.
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PNC Earnings and Stock
PNC reported third-quarter earnings per share of $2.82, up from $2.16 in the same quarter last year. This was 10 cents per share higher than analysts’ estimates. Revenue was up 5.6 percent from last year to $4.36 billion.