Banks’ Earnings Will Likely Get Stronger in 3Q17
Banks expect healthy growth in the third quarter
Some of the largest US banks like Citigroup (C), JPMorgan Chase (JPM), and Bank of America (BAC) will report their 3Q17 earnings this week. Analysts expect JPMorgan Chase’s EPS (earnings per share) to increase from $1.58 in 3Q16 to $1.66 in 3Q17. However, consensus forecasts show revenues falling year-over-year to $25.3 billion. Citigroup is expected to report EPS of $1.30—compared to $1.24 in 3Q16. Wells Fargo’s (WFC) EPS will likely remain flat, while Bank of America could see its EPS growing from $0.41 in 3Q16 to $0.46 in 3Q17.
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US banks are gaining market share in the global equity capital market
The five largest US banks (XLF) increased their market share in the global equity capital market to over 36% in 3Q17—the highest in ten quarters. The average market share for these banks in the first nine months of 2017 was 35.7%—compared to 32% for fiscal 2016. In recent years, the five largest US investment banks remained in the top five ranks on the global equity capital market league table.
JPMorgan Chase leads US banks in retail deposits
According to data released by the FDIC, JPMorgan Chase topped US banks in retail deposits for the first time in 23 years. JPMorgan Chase’s deposits rose 7.9% in the past year to $1.31 trillion as of June 30, 2017. It surpassed Bank of America, which remained at $1.29 trillion.