Bank Of America Corp.

China’s foreign reserves rose by $13.5 billion in June to $3.2 trillion. June’s increase was the largest in 14 months.

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.

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.

Since the financial crisis of 2009, there has been intense pressure on US banks to raise capital levels to meet minimum requirements.

To make the most of growing consumer spending, major banks focused on their consumer banking business. They’re lending out more consumer loans.

For Apple, as Buffett noted during last year’s shareholder meeting, there aren’t a lot of acquisition opportunities that fit into its scale.

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.

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%.

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 (BAC) reported third-quarter revenues of $22.8 billion, surpassing Wall Street’s forecast of $22.7 billion.

Bank of America (BAC) is expected to post earnings per share or EPS of $0.59 in 1Q18, marking growth of 43.9%.

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 charges fixed fees and performance fees for asset management services, products and services, and administration of accounts.

On March 26, the U.S. Fed released bank stress test results indicating which banks can increase dividend payouts and share buybacks.

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%.

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.

Major banking stocks rose after the Fed approved huge payout plans. Wells Fargo (WFC) rose 2.7% and Citigroup (C) rose 2.8%.

Wall Street analysts have been bullish on shares of Bank of America (BAC) on prospects of an interest rate hike and cheap valuations.

Investors have become wary of global equities (EFA). That’s on a backdrop of continued uncertainty surrounding global economic growth and weak corporate earnings.

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.

Bank of America (BAC) plans to report its third-quarter results on October 15.

Potential new developments from the Fed include a suggestion by the subcommittee on communications that median values of policymakers’ projections be published.

The Fed has suggested four rate hikes in 2018, reflecting a strong stance on economic growth and inflationary pressures.

Unlike traditional banks, First Internet Bank said it does not maintain a costly branch network to serve its customers.

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.

This week, five of the top six commercial and investment banks will report their quarterly earnings.

Higher valuations and the expectation of faster rate hikes led to withdrawals from equities and debt securities in recent quarters.

PNC Financial Services (PNC) reported its 2Q16 earnings on July 15, 2016, and managed to beat analysts’ estimates.

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.

Two key elements gripping the US banking sector and Wells Fargo include the near-zero interest rate and global uncertainty, which have dampened earnings.

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 has incurred interest expenses on deposits of $57 million in 1H17 compared to $54 million in 1H16.

At Wells Fargo’s investor day presentation, chief financial officer John Shrewsberry warned investors of more losses on energy-related loans.

JPMorgan Chase’s (JPM) Commercial Banking segment provides conventional banking services to corporate clients. It’s JPMorgan’s third largest business segment.

Wall Street analysts have upgraded their ratings for bankers over the past couple of years.

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.

In this series, we’ll look at Citigroup’s expected performance in 2018, segment-wise performance, valuation, dividends, and repurchases.

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.

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.

Among the 133 13F filers holding the stock, 43 funds reduced their exposure to KBE, while 21 funds sold all their holdings.

Bank of America (BAC) is currently trading at $25.26. Its 52-week high is $25.80 and 52-week low is $12.05.

In the past few quarters, JPMorgan has posted better-than-expected earnings and has topped revenue estimates.

Citigroup (C) is scheduled to report its third-quarter earnings results on October 12.

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.

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.

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.

Wells Fargo has consistently performed well in stress tests. This performance has let the company increase its dividends annually.

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.

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.

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.

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 […]

Monetary policy normalization refers to two aspects: the federal funds rate and the Federal Reserve’s balance sheet.

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.

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.

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.

Alibaba (BABA) tops the list of companies seeking to patent ideas related to blockchain technology.

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.

JPMorgan Chase (JPM) is expected to post a strong operating performance in 1Q18 due to growth in core banking, investment banking, and trading activity.

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.

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.

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.

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.

Commercial banks and asset managers have had a strong run since the beginning of 2016, given the rise in equities across the board.

JPMorgan Chases’s trading and investment banking business recorded healthy growth in the second quarter.

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.

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.

Bank of America boosted its dividends by 50% to $0.075 after it cleared the Fed’s 2016 stress tests.

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.

Volatility in equity and debt markets has risen substantially since February due to shifting investments in alternatives and other asset classes.

In 2018, Citigroup can target $15.0 billion–$18.0 billion in total payouts, depending on whether it can meet its earnings outlook.

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.

The 13F filings of major institutional asset managers for the second quarter of 2015 offer a gloomy picture for Brazil.

The Fed is targeting one last rate hike in December 2017 to bring the federal funds rate from 1.25% to 1.50%.

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 […]

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.

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.

The September FOMC (Federal Open Market Committee) meeting had surprised market participants with three dissenting votes.

During 2014, return on equity and return on assets both fell for the banking sector.

Despite frequent criticism from Trump, the Fed went ahead with four rate hikes last year.

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.

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 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.

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 (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.

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.

A rise in capacity use indicates higher demand for goods, and has been historically associated with higher inflation.

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.

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.

In his recent CNBC interview, billionaire investor Warren Buffett stated that he still believes in Wells Fargo and CEO Timothy J. Sloan.

Changes in technology have reshaped the banking sector. Banks are increasingly collaborating with fintech firms to improve their customer service.

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.

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.

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.

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.

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 is not upbeat about fixed income in 2016. It’s more optimistic about stocks than it is about bonds, specifically European and Japanese equities.

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.

The latest economic data and renewed geopolitical concerns failed to thwart ETF inflows last week.