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Zacks Investment Ideas feature highlights: JP Morgan Chase, Wells Fargo, Citigroup and Bank of America
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For Immediate Release
Chicago, IL – January 15, 2024 – Today, Zacks Investment Ideas feature highlights JP Morgan Chase & Co. (JPM - Free Report) , Wells Fargo & Company (WFC - Free Report) , Citigroup (C - Free Report) and Bank of America (BAC - Free Report) .
The Big Banks Reported Earnings, and This Is the Clear Leader
A slew of bank earnings from the largest financial institutions in the world were released this morning, providing insight into their Q4 and 2023 performance.
Although the financial sector underperformed the broad market during 2023, returning just 12% vs the S&P’s 24%, XLF managed to outperform in the fourth quarter. As markets began pricing in the coming interest rate cuts, banks, which hold large fixed income portfolios benefited significantly.
Earnings Results
JP Morgan Chase & Co. clearly came out on top, and although it missed quarterly earnings estimates, recorded its most profitable year on record. The country’s largest bank booked $49.6 billion in profits for the year, a 32% increase from 2022.
JPM CEO Jamie Dimon had some rather grim remarks about the state of the economy sharing that he thinks rampant deficit spending risks another inflationary spike and that he remains cautious about expectations this year.
Looking back a few quarters, while large swaths of the industry were in panic during the Silicon Valley Bank crisis, JP Morgan Chase & Co. sat comfortably, drawing in new depositors, and buying up distressed firms on the cheap.
Part of what limited the Q4 profits were charges to cover special government fees related to the failures of Silicon Valley Bank and Signature Bank. The $3 billion charge will refill a government FDIC fund.
JPM reported Q4 EPS of $3.04 below estimates of $3.35. However, before the one-time fee, earnings were $3.97 per share.
JP Morgan Chase & Co. is the best performing large bank stock of the group over the last 1, 5 and 10-year periods.
Wells Fargo & Company had a commendable Q4 performance as well, beating analysts’ expectations on both the top and bottom line. Q4 EPS of $1.29 came in above estimates of $1.09 and sales of $20.48 billion were just above estimates of $20.4 billion.
Wells Fargo & Company currently has a forward earnings multiple of 10.1x, which is just below the industry average and below its 10-year median of 12.5x. The company also pays a dividend yield of 2.85%.
Citigroup, the bank stock with the highest Zacks rank, posted mixed earnings this morning. The company currently has a Zacks Rank #2 (Buy) rating, but reported a major earnings miss. However, like the other big banks was largely affected by the FDIC charges related to last year's banking crisis. Before the charges, Citigroup had earnings of $0.84 per share vs. expectations of $0.81.
Revenue also came up short, reporting $17.44 billion, below estimates of $18.74 billion.
Citibank CEO Jane Fraser stated that the company’s performance was disappointing and announced plans for a sweeping reorganization. She said that the company plans to cut up to 20,000 employees over the next two years.
Bank of America also posted rather dismal earnings after the one-time FDIC charge. Net income fell some 50% YoY and the stock is down (-5%) over the last 12 months.
Sales for the nation’s second-largest bank missed analysts’ estimates for the first time in two years and were down 10% from the year ago quarter.
Bank of America CEO Brian Moynihan was upbeat nonetheless, saying that the company has achieved record client activity and that disciplined budgeting and a strong capital base should allow the company to deliver strong growth in the year ahead.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: JP Morgan Chase, Wells Fargo, Citigroup and Bank of America
For Immediate Release
Chicago, IL – January 15, 2024 – Today, Zacks Investment Ideas feature highlights JP Morgan Chase & Co. (JPM - Free Report) , Wells Fargo & Company (WFC - Free Report) , Citigroup (C - Free Report) and Bank of America (BAC - Free Report) .
The Big Banks Reported Earnings, and This Is the Clear Leader
A slew of bank earnings from the largest financial institutions in the world were released this morning, providing insight into their Q4 and 2023 performance.
Although the financial sector underperformed the broad market during 2023, returning just 12% vs the S&P’s 24%, XLF managed to outperform in the fourth quarter. As markets began pricing in the coming interest rate cuts, banks, which hold large fixed income portfolios benefited significantly.
Earnings Results
JP Morgan Chase & Co. clearly came out on top, and although it missed quarterly earnings estimates, recorded its most profitable year on record. The country’s largest bank booked $49.6 billion in profits for the year, a 32% increase from 2022.
JPM CEO Jamie Dimon had some rather grim remarks about the state of the economy sharing that he thinks rampant deficit spending risks another inflationary spike and that he remains cautious about expectations this year.
Looking back a few quarters, while large swaths of the industry were in panic during the Silicon Valley Bank crisis, JP Morgan Chase & Co. sat comfortably, drawing in new depositors, and buying up distressed firms on the cheap.
Part of what limited the Q4 profits were charges to cover special government fees related to the failures of Silicon Valley Bank and Signature Bank. The $3 billion charge will refill a government FDIC fund.
JPM reported Q4 EPS of $3.04 below estimates of $3.35. However, before the one-time fee, earnings were $3.97 per share.
JP Morgan Chase & Co. is the best performing large bank stock of the group over the last 1, 5 and 10-year periods.
Wells Fargo & Company had a commendable Q4 performance as well, beating analysts’ expectations on both the top and bottom line. Q4 EPS of $1.29 came in above estimates of $1.09 and sales of $20.48 billion were just above estimates of $20.4 billion.
Wells Fargo & Company currently has a forward earnings multiple of 10.1x, which is just below the industry average and below its 10-year median of 12.5x. The company also pays a dividend yield of 2.85%.
Citigroup, the bank stock with the highest Zacks rank, posted mixed earnings this morning. The company currently has a Zacks Rank #2 (Buy) rating, but reported a major earnings miss. However, like the other big banks was largely affected by the FDIC charges related to last year's banking crisis. Before the charges, Citigroup had earnings of $0.84 per share vs. expectations of $0.81.
Revenue also came up short, reporting $17.44 billion, below estimates of $18.74 billion.
Citibank CEO Jane Fraser stated that the company’s performance was disappointing and announced plans for a sweeping reorganization. She said that the company plans to cut up to 20,000 employees over the next two years.
Bank of America also posted rather dismal earnings after the one-time FDIC charge. Net income fell some 50% YoY and the stock is down (-5%) over the last 12 months.
Sales for the nation’s second-largest bank missed analysts’ estimates for the first time in two years and were down 10% from the year ago quarter.
Bank of America CEO Brian Moynihan was upbeat nonetheless, saying that the company has achieved record client activity and that disciplined budgeting and a strong capital base should allow the company to deliver strong growth in the year ahead.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.