Mixed US bank earnings, cloudy outlook
Mixed US bank earnings from Bank of America, JPMorgan Chase, Citigroup and Wells Fargo prompt concerns about the health of corporate America. IGTV's Angeline Ong filters the key headlines from the earnings reports so far.
(AI Video Summary)
JPMorgan Chase
In this video, Angeline Ong dicusses all about the recent earnings of big banks, and it's been a bit of a mixed bag. Let's start with JPMorgan Chase - their shares have gone up by around 2.6%. They've actually reported their best-ever annual profit, which is pretty impressive. On top of that, they're expecting to make even more money in 2024 than they originally thought. However, their quarterly profit did take a hit because they had to put aside $3 billion to refill a government deposit insurance fund.
Citigroup
Now, let's talk about Citigroup. Their shares are also up - by 2% on tastylive - but they reported a loss of $1.8 billion for 2024. This loss is because they had to put money aside to refill that same deposit insurance fund and make some changes under their CEO.
Wells Fargo
Moving on to Wells Fargo - they had a nice boost in their Q4 profit, thanks to their partnership with Costco. But their shares are down almost 1%. They warned investors that their net interest income for 2024 might be up to 9% lower than last year. This news isn't making people too excited, hence the drop in their shares.
Bank of America
Lastly, we have Bank of America. Their shares have taken a hit too - down over 2%. Their fourth-quarter profit went down because they had to put aside a whopping $3.7 billion to refill the deposit insurance fund and get rid of a loan index. On top of that, their net interest income fell 5% due to higher interest rates, which meant they had to pay out more to depositors.
Overall, this earnings season for banks has been a bit of a mix. Some banks, like JPMorgan Chase, are doing really well, while others, like Citigroup, Wells Fargo, and Bank of America, are facing some challenges. One key thing analysts were looking at was the net interest income, which is the difference between what the bank earns from loans and what it pays out to depositors. The impact of higher interest rates on what depositors get back was expected, but the percentage decrease in net interest income is what really caught the attention of market observers.
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