Bank Of America Corp.
Anne Finucane Retiring as Bank of America’s Vice Chair
Bank of America Picks Three EV Supplier Stocks to Play the EV Theme
China’s Foreign Reserves Rise in June: Here’s Why
China’s foreign reserves rose by $13.5 billion in June to $3.2 trillion. June’s increase was the largest in 14 months.
Ford Credit’s 2Q15 Profits Rise on Higher Volumes
We’ve seen the 2Q15 performance of Ford’s (F) automotive operations. Now, we’ll look at how Ford Credit contributed to Ford’s 2Q15 profits.
Will Financials Recover Next Week?
Broader markets posted a sharp drop and the financial sector saw more losses. The S&P 500 financial index fell 5.80% and closed at 458.95.
Morgan Stanley’s Capital Position Remains Strong
Since the financial crisis of 2009, there has been intense pressure on US banks to raise capital levels to meet minimum requirements.
How Would Rising Charge-Offs Impact Major Banks’ Earnings?
To make the most of growing consumer spending, major banks focused on their consumer banking business. They’re lending out more consumer loans.
Scale: A Boon or Bane for Apple and Warren Buffett?
For Apple, as Buffett noted during last year’s shareholder meeting, there aren’t a lot of acquisition opportunities that fit into its scale.
Wall Street’s Expectations for US Bankers in Q3 2018
Broader markets have risen in the past few months on corporate earnings and slower rate hike expectations due to the Trump administration’s criticism of the Fed’s hawkish policy.
Analyzing U.S. Bank’s strong 4Q14 results
U.S. Bank (USB) reported strong 4Q14 results on Wednesday, January 21. The bank reported revenue of $5,169 million for 4Q14. This was a growth of 5.7%.
How Is BNY Mellon Controlling Expenses?
The Bank of New York Mellon’s (BK) cost-cutting program has been effective, and activist investors are appreciating the measures it’s taking to improve profitability.
Bank of America’s Q3 Revenues Surpassed Wall Street Estimates
Bank of America (BAC) reported third-quarter revenues of $22.8 billion, surpassing Wall Street’s forecast of $22.7 billion.
What to Expect of Bank of America’s 1Q18 Earnings
Bank of America (BAC) is expected to post earnings per share or EPS of $0.59 in 1Q18, marking growth of 43.9%.
Why BTIG Is Bullish on PayPal
PayPal (PYPL) could have bright prospects despite the competitive threat it faces from Square and Apple in the online payment market, according to equity research firm BTIG.
Morgan Stanley’s Strong Revenue Model
Morgan Stanley charges fixed fees and performance fees for asset management services, products and services, and administration of accounts.
Must know: Stress tests and the likely timing for rate increases
On March 26, the U.S. Fed released bank stress test results indicating which banks can increase dividend payouts and share buybacks.
After a Lackluster 2Q15, Return on Equity Will Likely Improve
Wall Street analysts expect Goldman Sachs to post return on equity (or ROE) of 11.5% in 3Q15. In 3Q14, ROE for Goldman Sachs was 11.8%.
Easing Bank Rules: Negative in the Long Term?
Fitch Ratings says that easing the Dodd-Frank Act for smaller and custodial banks could be negative for some banks’ credit profiles in the long term.
Financials Overview for the Week of June 26–30, 2017
Major banking stocks rose after the Fed approved huge payout plans. Wells Fargo (WFC) rose 2.7% and Citigroup (C) rose 2.8%.
Why 80% of Analysts Rate Bank of America a ‘Buy’
Wall Street analysts have been bullish on shares of Bank of America (BAC) on prospects of an interest rate hike and cheap valuations.
Why Are We So Cautious on Global Equities?
Investors have become wary of global equities (EFA). That’s on a backdrop of continued uncertainty surrounding global economic growth and weak corporate earnings.
GS Cuts More Jobs than It Did during the 2008 Financial Crisis
Goldman Sachs has been cutting costs in recent quarters. In 2016, 2,600 people may have lost their jobs at GS—the highest number since the financial crisis.
What to Expect from Bank of America’s Third-Quarter Earnings
Bank of America (BAC) plans to report its third-quarter results on October 15.
What New Developments Can You Expect from the Fed?
Potential new developments from the Fed include a suggestion by the subcommittee on communications that median values of policymakers’ projections be published.
Balance Sheet, Slippages to Determine Bank of America’s Lending
The Fed has suggested four rate hikes in 2018, reflecting a strong stance on economic growth and inflationary pressures.
Why First Internet Bancorp is an attractive investment opportunity
Unlike traditional banks, First Internet Bank said it does not maintain a costly branch network to serve its customers.
Will Bank of America’s 4Q16 Earnings Buoy Its Stock Further?
Bank of America is expected to announce its 4Q16 results before the market opens on January 13, 2017. Analysts expect it to post earnings per share of $0.38.
5 Big Banks to Report Their Earnings this Week
This week, five of the top six commercial and investment banks will report their quarterly earnings.
Macros Impact Bankers’ Asset Management
Higher valuations and the expectation of faster rate hikes led to withdrawals from equities and debt securities in recent quarters.
PNC Financial Services: What Impacted Its 2Q16 Earnings?
PNC Financial Services (PNC) reported its 2Q16 earnings on July 15, 2016, and managed to beat analysts’ estimates.
JPMorgan’s Trading Revenues Fall 7% in 2Q15
JPMorgan’s revenues from fixed income markets declined 10% year-over-year in the second quarter of 2015. The drop excludes the impacts of one-off items.
How Global Weakness Drags down Wells Fargo’s Profitability in 4Q15
Two key elements gripping the US banking sector and Wells Fargo include the near-zero interest rate and global uncertainty, which have dampened earnings.
Did Banks’ Earnings Grow in 4Q15?
The Federal Deposit Insurance Corporation’s quarterly report on the health of the US banking industry said that 4Q15 bank earnings rose 11.9% year-over-year.
State Street’s Total Revenues Rose in 1H17: Here’s Why
State Street has incurred interest expenses on deposits of $57 million in 1H17 compared to $54 million in 1H16.
Why Wells Fargo’s Energy Loan Losses Could Rise in 2Q16
At Wells Fargo’s investor day presentation, chief financial officer John Shrewsberry warned investors of more losses on energy-related loans.
JPMorgan’s Commercial Banking segment had mild results in the 4Q
JPMorgan Chase’s (JPM) Commercial Banking segment provides conventional banking services to corporate clients. It’s JPMorgan’s third largest business segment.
Wall Street Still Loves Banking Stocks
Wall Street analysts have upgraded their ratings for bankers over the past couple of years.
Is Citigroup’s Restructuring Exercise Benefiting the Company?
Citigroup’s CEO, Michael Corbat, continued his efforts to try to slim down the company’s operations and clean up its balance sheet in the second quarter.
Why Citigroup Might Surprise Investors in 1Q18 and 2018
In this series, we’ll look at Citigroup’s expected performance in 2018, segment-wise performance, valuation, dividends, and repurchases.
Bank Stocks Rise Due to Expectations of a Rate Hike
2016 has been a rough year for the financial sector. Banks entered 2016 expecting four rounds of interest rate hikes. Things didn’t turn out in their favor.
Benefit of Hindsight: The Fed Wasn’t Going to Raise the Rates
Some participants had maintained that the Fed shouldn’t raise rates in September, but many participants thought that the Fed would “liftoff” at this meeting.
KBE’s Inflows Reached $17 Million the Week Ended December 11
Among the 133 13F filers holding the stock, 43 funds reduced their exposure to KBE, while 21 funds sold all their holdings.
What Goldman Sachs Thinks about Bank of America
Bank of America (BAC) is currently trading at $25.26. Its 52-week high is $25.80 and 52-week low is $12.05.
Can JPMorgan Beat Analysts Estimates in 2Q16?
In the past few quarters, JPMorgan has posted better-than-expected earnings and has topped revenue estimates.
Can Citigroup Keep the Earnings Streak Alive in Q3 2018?
Citigroup (C) is scheduled to report its third-quarter earnings results on October 12.
XLF Crosses 20-day Moving Average, Turns Positive on October 23
The Financial Select Sector SPDR ETF (XLF) attracts the most attention among US financial ETFs, as 87% of the fund is composed of large-cap stocks.
US Banks Are Optimistic about the New Tax Plan
Despite the $32.9-billion hit the top five banks took in their fourth-quarter earnings, US banks (XLF) are generally very positive about the new tax plan.
Turn to Financials and Healthcare When Fears of Rate Hike Loom
With classic safe havens providing little protection, turn to financials and healthcare sectors for opportunities. Healthcare stocks usually hold up well in the run-up to a rate hike.
How Wells Fargo Creates Value for Shareholders
Wells Fargo has consistently performed well in stress tests. This performance has let the company increase its dividends annually.
How Did Bank of America Perform in 2016?
Bank of America reported strong 4Q16 earnings, in line with its guidance. BAC’s management attributed this rise in earnings to its disciplined cost management strategy.
XLF Had Outflows of $30.9 Million
ETF investors withdrew $30.9 million from the Financial Select Sector SPDR ETF (XLF) during the week ended January 22, 2016. So far in January, the ETF has witnessed outflows of $924 million.
What Impacted Wells Fargo’s First Quarter Earnings?
Wells Fargo’s first quarter earnings surpassed expectations but fell 5% YoY (year-over-year). The net interest income increased by 6% to $11.7 billion.
Bank of America’s Continued Efficiency Maintains Margins
Operating margins In 3Q17, Bank of America’s (BAC) non-interest expenses fell sequentially and YoY (year-over-year), reflecting strong operating efficiency. This fall was partially offset by continued investments in technology. The bank’s expenses fell to $13.1 billion in 3Q17, compared with $13.5 billion in 3Q16 and $13.7 billion in 2Q17. Commercial banks (XLF) are focusing on reducing operating spending, targeting huge investments in technology […]
How will the Federal Reserve go about policy normalization?
Monetary policy normalization refers to two aspects: the federal funds rate and the Federal Reserve’s balance sheet.
Citigroup’s Focus on Efficiency Could Boost Its Profitability
Citigroup’s 2Q15 efficiency ratio was 56% and was 66% in 3Q14. The bank has focused on efficiency through cost controls and exiting low-return segments that led to a lower efficiency ratio.
How Analysts Reacted to Goldman’s Q1 Results
After Goldman Sachs (GS) posted mixed first-quarter results yesterday, KBW lowered its target price to $210 from $215, and BMO reduced it to $260 from $262.
Why JPMorgan and Wells Fargo Are Trading at High Multiples
In spite of a rather weak performance, Wells Fargo (WFC) commands the highest premium due to its strong franchise, mortgage concentration, and high net interest margins.
Why Is Alibaba So Interested in Blockchain?
Alibaba (BABA) tops the list of companies seeking to patent ideas related to blockchain technology.
BNY Mellon’s Capital Ratios and Liquidity Position Improved in 4Q16
Bank of New York Mellon’s (BK) Tier 1 Capital ratio was 14.5% compared to 13.6% recorded at the end of its previous quarter.
What Could Drive JPMorgan Chase’s Growth in 1Q18?
JPMorgan Chase (JPM) is expected to post a strong operating performance in 1Q18 due to growth in core banking, investment banking, and trading activity.
Why Wells Fargo leads in loans
The bank has always focused on its bread and butter revenue-earning stream: loans. Over the years, Wells Fargo slowly realized its goal of achieving a strong market share in lending.
Will Dividends Please Wells Fargo’s Investors Worried about Scandals?
In June, the Federal Reserve approved Wells Fargo’s (WFC) capital plans after it found that the bank could keep lending in a severe economic downturn.
Why Wall Street Is Neutral on Goldman Sachs despite High Growth
Goldman Sachs (GS) has demonstrated a strong performance in the first half of 2018 as compared to a weaker 2017 mainly due to higher trading income, private market equity returns, debt lending, and transaction advisory fees.
U.S. Bank’s operational profitability measures were mixed in 4Q14
For a bank, the core operational profitability measures are net interest income and net interest margins. U.S. Bank’s net interest income grew 2.4% in 4Q14.
Do US Bankers’ Asset Management Divisions Have Room for Growth in 2018?
Commercial banks and asset managers have had a strong run since the beginning of 2016, given the rise in equities across the board.
Why JPMorgan Chase’s Trading Revenues Beat Expectations
JPMorgan Chases’s trading and investment banking business recorded healthy growth in the second quarter.
What Do Analysts Forecast for BNY Mellon’s 4Q16 Earnings?
According to consensus data accumulated by Reuters, net revenues for BNY Mellon are expected to be $3.8 billion in 4Q16, 3.4% higher year-over-year.
JPMorgan Chase’s Shareholder Payouts Rise on Strong Buybacks
In 4Q17, JPMorgan Chase (JPM) returned $6.7 billion to shareholders in the form of dividends and repurchases, compared to $4.5 billion in 3Q17.
How Did Bank of America Perform on 2016 Stress Tests?
Bank of America boosted its dividends by 50% to $0.075 after it cleared the Fed’s 2016 stress tests.
What Can We Expect from PNC Financial Services in 2Q16?
PNC Financial Services (PNC) is expected to report EPS (earnings per share) of $1.76 in the June quarter and $7.16 for fiscal 2016.
Trade Wars: Higher Volatility and Trading Income
Volatility in equity and debt markets has risen substantially since February due to shifting investments in alternatives and other asset classes.
Citigroup Can Target $15 Billion in Shareholder Payouts in 2018
In 2018, Citigroup can target $15.0 billion–$18.0 billion in total payouts, depending on whether it can meet its earnings outlook.
Will Bond Market Rally Take a Break amid Interest Rate Hikes?
The possibility of a delayed Fed rate hike might have put a plug on U.S. Treasury yields, ensuring more days of a cheap dollar environment.
Institutional Asset Managers Liquidate Exposure to Brazil ETFs
The 13F filings of major institutional asset managers for the second quarter of 2015 offer a gloomy picture for Brazil.
How Rate Hikes and Tax Rate Cuts Could Play Out for Bankers
The Fed is targeting one last rate hike in December 2017 to bring the federal funds rate from 1.25% to 1.50%.
Another Regulatory Hurdle for Wells Fargo as It Fails Fed’s Test
Wells Fargo fails test In another blow to Wells Fargo’s reputation, the Federal Reserve said that Wells Fargo (WFC) failed to meet the requirements of its stress tests and faces penalties. The bank (XLF) failed the “living will” test that requires banks with above $50 billion in consolidated assets to submit a resolution plan explaining […]
Has Bank of America Stock Lost Steam?
So far in 2016, Bank of America stock has risen 37.0%. By comparison, shares of Goldman Sachs (GS), Citigroup (C), and Wells Fargo (WFC) have underperformed.
Major Litigations End, but Bank of America Faces New Challenge
In March, the Fed issued a conditional non-objection to Bank of America’s capital plan. It must resubmit its plan and address certain weaknesses.
Why the September FOMC Meeting Was a Close Call
The September FOMC (Federal Open Market Committee) meeting had surprised market participants with three dissenting votes.
How did banking sector returns fare in 2014?
During 2014, return on equity and return on assets both fell for the banking sector.
IMF and ECB Advocate Central Bank Independence
Despite frequent criticism from Trump, the Fed went ahead with four rate hikes last year.
Bank of America’s Efficiency Could Improve to 63% in 2017
Bank of America (BAC) has put in place a strong expense control mechanism that has resulted in lower growth in operating expenses compared to revenues.
JPMorgan Chase Gained 4% after Its 1Q16 Earnings: Was It That Good?
On April 13, JPMorgan Chase reported 1Q16 earnings of $1.35 per share. It beat consensus estimates of $1.28. Its shares rallied 4.2% after the earnings beat.
The Banking Sector in Mid-November: Awaiting a Probable Rate Hike
The Fed’s focus in December will likely be on the pacing of subsequent rate hikes rather than on the timing of the first rate hike.
Banks Surge to Highest Levels since Financial Crisis
Some investors are still expecting banks to reap huge benefits from rising interest rates in 2017 and lighter regulations under Trump’s administration.
Wells Fargo Valuations Halve amid Stock Route and Trade Wars
Wells Fargo (WFC) stock has declined 6.7% over the past six months and 7.6% over the past year. The bank has underperformed peers (XLF) as well as broad indices over the past few quarters.
U.S. Bank’s growth in residential mortgage loans was modest
At U.S. Bank (USB), residential mortgage loans were $51,872 million at the end of 4Q14. This was a modest growth of 2.2%—compared to 4Q13.
Industrial Capacity Use Slips Again: Will It Hurt US Banks?
A rise in capacity use indicates higher demand for goods, and has been historically associated with higher inflation.
Soaring high: Appaloosa initiates a position in American Airlines
Appaloosa Management’s top new buy last quarter was American Airlines Group (AAL), with a 2.22% position in the hedge fund’s U.S. long portfolio.
Can ‘Patience’ Give Way to Something Else in March 2015?
The FOMC will meet for its next scheduled meeting on March 17–18, 2015. Markets will be watching for a change in the language of the FOMC’s forward guidance.
Why Does Buffett Still Have Faith in Wells Fargo after the Scandals?
In his recent CNBC interview, billionaire investor Warren Buffett stated that he still believes in Wells Fargo and CEO Timothy J. Sloan.
US Banking Sector: Key Trends and Outlook
Changes in technology have reshaped the banking sector. Banks are increasingly collaborating with fintech firms to improve their customer service.
XLF May Cross Its 100-Day Moving Average: Is It Time to Buy?
The Financial Select Sector SPDR ETF (XLF) attracts the most attention among financial ETFs in the US. 87% of the fund is composed of large-cap stocks.
Why Wells Fargo has the highest net interest margin
Maintaining a high net interest margin has always been part of Wells Fargo’s (WFC) strategy. Wells Fargo has consistently been better than the industry’s average net interest margin.
BofA Cut Boeing Target Price Due to Rising MAX Uncertainty
On Monday, Bank of America analyst Ronald Epstein lowered his target price on Boeing stock by $10 to $360. However, he maintained his “neutral” rating.
Must-know: D.E. Shaw trims position in Apple
D.E. Shaw decreased its position in Apple Inc. (AAPL) that accounted for 5.76% of the company’s U.S. long portfolio in 4Q13.
PLVBX Offers Investors a Different Approach
The PIMCO RAE Low Volatility Plus International Fund – Class A (PLVBX) uses a long or short hedge fund strategy to achieve its investment objective.
BlackRock Shares Its Views on Fixed-Income Strategy for 2016
BlackRock is not upbeat about fixed income in 2016. It’s more optimistic about stocks than it is about bonds, specifically European and Japanese equities.
Why D.E. Shaw decreases position in Bank of America Corp.
D.E. Shaw decreased its position in Bank of America Corp. (BAC) that accounted for 1.11% of the company’s U.S. long portfolio in 4Q13.
ETF Inflows Rebounded despite Rising Geopolitical Concerns
The latest economic data and renewed geopolitical concerns failed to thwart ETF inflows last week.