We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
In the third quarter of 2024, Wall Street's largest banks recorded a notable rebound, driven by increased corporate activity in debt issuance and mergers. Many of these banks reported strong trading performances, which helped offset uneven consumer banking results to some extent.
Collectively, Goldman Sachs (GS - Free Report) , Bank of America (BAC - Free Report) , Citigroup (C - Free Report) , and JPMorgan Chase (JPM - Free Report) reported combined investment banking fees of $6.5 billion, a 27% increase year-over-year. Combined trading revenue for these banks reached $23.4 billion, up 6% from the previous year.
On Oct. 15, 2024, Goldman Sachs saw a 20% increase in investment banking fees compared to the same period last year. The Goldman Sachs’ third-quarter 2024 adjusted earnings per share of $8.40 surpassed the Zacks Consensus Estimate of $6.85.
Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.
Net revenues for the quarter of $12.7 billion increased 7.5% from the year-ago quarter. Also, the top line surpassed the Zacks Consensus Estimate of $11.63 billion. The bank’s CEO, David Solomon, noted renewed client optimism thanks to the onset of the Fed’s rate-cutting cycle. Goldman’s trading revenue increased 2%, while asset and wealth management revenue surged 16%.
Bank of America Reports Record Trading Revenue
On Oct. 15, Bank of America reported third-quarter 2024 earnings of 81 cents per share, which surpassed the Zacks Consensus Estimate of 78 cents. Net revenues were $25.35 billion, which beat the Zacks Consensus Estimate of $25.29 billion.
The bank achieved its highest-ever third-quarter trading revenue. Trading income grew by 12%, with equity and debt issuance revenues increasing 16% and 37%, respectively. CEO Brian Moynihan highlighted growth in investment banking, asset management, and trading as key drivers of performance.
Citigroup Sees Strong Trading Performance
On Oct. 15, Citigroup reported its strongest third-quarter trading performance in over a decade, despite some challenges. Citigroup’s third-quarter 2024 adjusted net income per share of $1.51 surpassed the Zacks Consensus Estimate of $1.34.
Revenues, net of interest expenses, moved up 1% year over year to $20.32 billion in the third quarter. The top line surpassed the Zacks Consensus Estimate of $19.90 billion. Investment banking fees rose by 44%.
Wells Fargo Earnings Beat on Higher Fee Income, Lower Expenses
Last week, Wells Fargo & Company reported its third-quarter 2024 adjusted earnings per share of $1.52, which surpassed the Zacks Consensus Estimate of $1.27. Quarterly total revenues were $20.37 billion, missing the Zacks Consensus Estimate of $20.38 billion.
Results benefited from higher non-interest income. An improvement in capital ratios, a decline in provisions and non-interest expenses were other positives. However, the decrease in net interest income (NII), as well as loans balances were the undermining factors.
JPMorgan Earnings and Revenues Beat Estimates
Last week, JPMorgan Chase & Co. came out with quarterly earnings of $4.37 per share, beating the Zacks Consensus Estimate of $4.02 per share. This compares to earnings of $4.33 per share a year ago. JPMorgan Chase & Co., which belongs to the Zacks Banks - Major Regional industry, posted revenues of $42.65 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 3.87%.
What Lies Ahead?
Looking ahead, while banks are hopeful about a healthy economic environment, concerns persist related to likely economic disruptions or geopolitical events that could impact future performance. If Trump manages to win the presidential election, bank stocks have higher chances of gain.
All the aforementioned financial companies have considerable exposure in funds like iShares U.S. Financial Services ETF (IYG - Free Report) , Invesco KBW Bank (KBWB - Free Report) , Financial Select Sector SPDR (XLF - Free Report) , U.S. Broker-Dealers Index Fund (IAI - Free Report) and Vanguard Financials ETF (VFH - Free Report) . Investors can keep a close track of these ETFs in the near term.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Time for Big Bank ETFs on Upbeat Earnings?
In the third quarter of 2024, Wall Street's largest banks recorded a notable rebound, driven by increased corporate activity in debt issuance and mergers. Many of these banks reported strong trading performances, which helped offset uneven consumer banking results to some extent.
Collectively, Goldman Sachs (GS - Free Report) , Bank of America (BAC - Free Report) , Citigroup (C - Free Report) , and JPMorgan Chase (JPM - Free Report) reported combined investment banking fees of $6.5 billion, a 27% increase year-over-year. Combined trading revenue for these banks reached $23.4 billion, up 6% from the previous year.
Goldman Sachs Posts Strong Investment Banking Growth
On Oct. 15, 2024, Goldman Sachs saw a 20% increase in investment banking fees compared to the same period last year. The Goldman Sachs’ third-quarter 2024 adjusted earnings per share of $8.40 surpassed the Zacks Consensus Estimate of $6.85.
Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.
Net revenues for the quarter of $12.7 billion increased 7.5% from the year-ago quarter. Also, the top line surpassed the Zacks Consensus Estimate of $11.63 billion. The bank’s CEO, David Solomon, noted renewed client optimism thanks to the onset of the Fed’s rate-cutting cycle. Goldman’s trading revenue increased 2%, while asset and wealth management revenue surged 16%.
Bank of America Reports Record Trading Revenue
On Oct. 15, Bank of America reported third-quarter 2024 earnings of 81 cents per share, which surpassed the Zacks Consensus Estimate of 78 cents. Net revenues were $25.35 billion, which beat the Zacks Consensus Estimate of $25.29 billion.
The bank achieved its highest-ever third-quarter trading revenue. Trading income grew by 12%, with equity and debt issuance revenues increasing 16% and 37%, respectively. CEO Brian Moynihan highlighted growth in investment banking, asset management, and trading as key drivers of performance.
Citigroup Sees Strong Trading Performance
On Oct. 15, Citigroup reported its strongest third-quarter trading performance in over a decade, despite some challenges. Citigroup’s third-quarter 2024 adjusted net income per share of $1.51 surpassed the Zacks Consensus Estimate of $1.34.
Revenues, net of interest expenses, moved up 1% year over year to $20.32 billion in the third quarter. The top line surpassed the Zacks Consensus Estimate of $19.90 billion. Investment banking fees rose by 44%.
Wells Fargo Earnings Beat on Higher Fee Income, Lower Expenses
Last week, Wells Fargo & Company reported its third-quarter 2024 adjusted earnings per share of $1.52, which surpassed the Zacks Consensus Estimate of $1.27. Quarterly total revenues were $20.37 billion, missing the Zacks Consensus Estimate of $20.38 billion.
Results benefited from higher non-interest income. An improvement in capital ratios, a decline in provisions and non-interest expenses were other positives. However, the decrease in net interest income (NII), as well as loans balances were the undermining factors.
JPMorgan Earnings and Revenues Beat Estimates
Last week, JPMorgan Chase & Co. came out with quarterly earnings of $4.37 per share, beating the Zacks Consensus Estimate of $4.02 per share. This compares to earnings of $4.33 per share a year ago. JPMorgan Chase & Co., which belongs to the Zacks Banks - Major Regional industry, posted revenues of $42.65 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 3.87%.
What Lies Ahead?
Looking ahead, while banks are hopeful about a healthy economic environment, concerns persist related to likely economic disruptions or geopolitical events that could impact future performance. If Trump manages to win the presidential election, bank stocks have higher chances of gain.
All the aforementioned financial companies have considerable exposure in funds like iShares U.S. Financial Services ETF (IYG - Free Report) , Invesco KBW Bank (KBWB - Free Report) , Financial Select Sector SPDR (XLF - Free Report) , U.S. Broker-Dealers Index Fund (IAI - Free Report) and Vanguard Financials ETF (VFH - Free Report) . Investors can keep a close track of these ETFs in the near term.