ETF Inflows Surpassed Last Year’s Total
The minutes from the Federal Reserve’s meeting held at the end of July showed that some officials favor delaying future rate hike decisions until there could be a sustained rise in inflation.
Texas utility Energy Future Holdings announced that it would abandon a deal to sell power transmission company Oncor Electric Delivery to Berkshire Hathaway (BRK.A) for $9.0 billion.
In 2Q17, Berkshire Hathaway (BRK.A) acquired a stake of 17.5 million shares in Synchrony Financial, the financing arm of General Electric. Berkshire Hathaway also increased its holdings in Bank of New York Mellon to 50.2 million shares.
Bank of America reported deposits totaling ~$1.3 trillion in 2Q17, compared to ~$1.2 trillion in 2Q16.
The Trump administration has proposed the Financial CHOICE Act, which aims to reverse or amend regulations set forth by Dodd-Frank.
Of the 30 analysts covering Bank of America, 22 analysts (~73%) gave it “buy” or “strong buy” ratings in August 2017.
JPMorgan Chase (JPM) returned $4.5 billion to shareholders in 2Q17 for a payout ratio of 64%.
In 2Q17, Bank of America’s expenses stood at ~$13.7 billion, representing a sequential decline.
In 2Q17, BAC generated ROA (return on assets) of 0.93%, which was higher than its ROA of 0.88% in 1Q17.
JPMorgan Chase (JPM) stock has generated a return of 3.9% over the last six months and 41.6% over the past year, reflecting high growth and stable performance.
JPMorgan Chase (JPM) witnessed the strongest growth in loans and deposits of 9% and 10%, respectively, among the major banks.
Bank of America’s (BAC) Global Banking division posted net income of ~$1.8 billion in 2Q17, compared to $1.7 billion in 1Q17 and $1.5 billion in 2Q16.
Bank of America’s (BAC) Global Wealth and Investment division posted net income of $804.0 million in 2Q17, up 14.0% on a year-over-year basis.
On June 30, 2017, Citigroup was managing retail loans and deposits of $142 billion and $307 billion, respectively.
According to management expectations, commercial and investment banks (XLF) posted subdued trading revenues in 2Q17. This decline was mainly due to lower volatility, high valuations, and expectations of profit booking in equities.
In 2Q17, US commercial banks (XLF) posted upbeat performance in investment banking due to fundraising and strategic transactions.
In 2Q17, Bank of America (BAC) posted a 7% rise in revenues to $22.8 billion and a 10% rise in net income to $5.3 billion.
Commercial bankers have had a solid run over the last 18 months, mostly due to rising rates and increased revenues. In this series, we’ll cover the US banking sector, focusing on major drivers and macro policies impacting banks.
Despite higher volatility levels, the US-listed (GS) (C) ETFs saw net inflows of ~$5.0 billion last week.
The volatility index also jumped to its highest level since the 2016 election due to heightened tension between North Korea and the US.