Quarterly Earnings Report: How Did Banks Fare In Q1?
The Q1 results are in from 23.7% of the S&P 500’s finance sector market cap, and the results aren't good, but they could have been a lot worse.
Total bank earnings are down 9.5% from last year, but 40% beat EPS estimates while 20% overcame revenue expectations, Zacks reports.
Wells Fargo saw its profits sink 5.9%, largely due to its heavy exposure to the oil and gas industry. Bank of America fared even worse—the banking giant’s profits tumbled 13%.
The only positive surprise was JP Morgan, and while the bank’s profits fell 6.7%, the bank’s earnings of $1.35 a share beat analyst's expectations of $1.26 a share.
Despite the negatives, Bank of America, JP Morgan and Wells Fargo all showed gains in their loan portfolios even as margins remain under pressure due to a tough interest rate backdrop. [Zacks]