Goldman Sachs’s Focus on Wall Street Boosts Earnings

/ / Financials /

Goldman Sachs’s strategy to refocus on its core Wall Street operations continues to pay off. Goldman’s second-quarter revenue increased 17% from a year ago to $12.73 billion, led by its asset and wealth management business, where it manages investments for large institutional clients and wealthy individuals, and an increase in investment banking fees. Goldman’s overall profit increased 150% from a year ago, when the bank was in the middle of a pullback from consumer lending, to $3.04 billion. Goldman has been undergoing a strategy shift, exiting consumer-lending after incurring billions of dollars in losses. The bank is instead refocusing on its core businesses of dealmaking and trading while growing its asset and wealth management division. Investment banking revenue was $1.73 billion, up 21% from a year ago, led by big increases in debt and equity underwriting revenue. Still, it was down from Goldman’s first quarter this year and the rise […]

Goldman Sachs’s Focus on Wall Street Boosts Earnings Read Post »

Citigroup Second-Quarter Results Top Views Amid Jump in Investment Banking Revenue

/ / Financials /

Citigroup (C) on Friday posted better-than-expected results for the second quarter, aided by a surge in investment banking revenue. Earnings rose to $1.52 a share for the quarter through June 30 from $1.33 a year earlier, while revenue increased 4% to $20.14 billion, topping Wall Street’s views for $1.41 and $20.09 billion, respectively. The company said revenue growth included a roughly $400 million gain tied to an exchange of shares in credit card giant Visa (V) completed during the quarter. “Our results show the progress we are making in executing our strategy and the benefit of our diversified business model,” Citigroup Chief Executive Jane Fraser said. “Markets had a strong finish to the quarter leading to better performance than we had anticipated.” Banking revenue surged 38% to $1.63 billion, led by a 60% jump in investment banking amid “strong” issuance activity in debt capital markets and an increase in initial

Citigroup Second-Quarter Results Top Views Amid Jump in Investment Banking Revenue Read Post »

S&P Global Revenues Look Up On Climbing Debt Issuance

/ / Financials /

With 2Q global debt issuance well above his expectations, Raymond James analyst Patrick O’Shaughnessy sees significant earnings upside for ratings powerhouse S&P Global. In a research note, O’Shaughnessy also says rallies across multiple stock markets and the S&P’s acquisition of investment research provider Visible Alpha complete the rosy picture. Raymond James, which has an outperform rating on shares, raises its target price on S&P Global to $491 from $462. S&P Global is up 0.6% to $463.08.

S&P Global Revenues Look Up On Climbing Debt Issuance Read Post »

Lockheed Martin Cash Boosted By F-35 Restart

/ / Industrials /

Lockheed Martin will start delivering some of the dozens of parked F-35s after the Pentagon agrees to accept jets with an interim software fix that would allow them to be used for training. They won’t be combat ready until next year. Lockheed had expected to deliver between 75 and 110 F-35s this year — the last was in December — and dozens of jets worth more than $10 billion have been left in storage. Lockheed has said it expects to deliver 75-110 this year, unlocking final cash payments, with the Pentagon able to clear the backlog at a rate of 20 a month.

Lockheed Martin Cash Boosted By F-35 Restart Read Post »

Big Banks Continue to Feel Pressure From Higher Rates

/ / Financials / , ,

Higher interest rates continue to pressure some of the country’s biggest banks, and their lending machines are showing signs of consumer weakness. JPMorgan Chase and Wells Fargo both reported a drop in quarterly profit Friday. Citigroup posted a rise in profit, driven in part by the bank’s cost-cutting measures, but set aside more provisions for potential losses in their credit-card business. JPMorgan’s second-quarter profit declined 9% year-over-year to $13.1 billion. That figure excludes an $8 billion gain the bank received on an exchange of its shares of Visa and other one-time items. The bank’s net interest income, a measure of the difference between what banks pay out on deposits and charge on loans, rose to $22.9 billion, up 5% versus a year earlier. JPMorgan Chief Executive Jamie Dimon repeated his view that interest rates could wind up staying higher than some economists have forecast. “Market valuations and credit spreads seem

Big Banks Continue to Feel Pressure From Higher Rates Read Post »

Big Banks Writing Off More Bad Debt

/ / Financials / ,

Major banks increase their net charge-offs, or the debt they’re owed but don’t expect to recover. JPMorgan Chase charge-offs rise $820 million in 2Q to $2.2 billion, as more credit cards were opened and credit conditions continued to normalize. Wells Fargo net charge-offs rise 71% in 2Q to $1.3 billion, with charge-offs from commercial real estate loans increasing, particularly in its office portfolio, though commercial and industrial loans were a drag too, with higher charge-offs recorded in its credit card portfolio. Citigroup’s cost of credit rose $1.5 billion to $2.3 billion on a 59% jump in credit losses from higher interest rates and persistent inflation prompting the bank to lift its provision for loan losses.

Big Banks Writing Off More Bad Debt Read Post »

Citigroup Q2 Earnings: Personal Banking Growth, Profit Growth, In-line Outlook And More

/ / Financials /

Citigroup Inc (NYSE:C) reported a second-quarter fiscal 2024 revenue growth of 4% year-over-year to $20.14 billion, beating the analyst consensus estimate of $20.07 billion. GAAP EPS of $1.52 beat the analyst consensus estimate of $1.39. Net credit losses were $2.28 billion, up 52% year-over-year. Services revenue grew 3% year-over-year to $4.7 billion, primarily reflecting strength in Securities Services and the impact of continued underlying momentum in Treasury and Trade Solutions. Markets revenue increased by 6% Y/Y to $5.1 billion, driven by Equity market revenue growth. Banking revenue increased 38% Y/Y to $1.6 billion, driven by Investment Banking and Corporate Lending. U.S. Personal Banking revenue grew 6% Y/Y to $4.9 billion, driven by higher net interest income. Wealth revenue grew 2% to $1.8 billion, driven by a 13% increase in non-interest revenue. All other revenue declined 22% year over year to $2.0 billion, primarily due to closed exits and winddowns and

Citigroup Q2 Earnings: Personal Banking Growth, Profit Growth, In-line Outlook And More Read Post »

Citigroup Second-Quarter Results Top Views Amid Jump in Investment Banking Revenue

/ / Financials /

Citigroup (C) on Friday posted better-than-expected results for the second quarter, aided by a surge in investment banking revenue. Earnings rose to $1.52 a share for the quarter through June 30 from $1.33 a year earlier, while revenue increased 4% to $20.14 billion, topping Wall Street’s views for $1.41 and $20.09 billion, respectively. The company said revenue growth included a roughly $400 million gain tied to an exchange of shares in credit card giant Visa (V) completed during the quarter. “Our results show the progress we are making in executing our strategy and the benefit of our diversified business model,” Citigroup Chief Executive Jane Fraser said. “Markets had a strong finish to the quarter leading to better performance than we had anticipated.” Banking revenue surged 38% to $1.63 billion, led by a 60% jump in investment banking amid “strong” issuance activity in debt capital markets and an increase in initial

Citigroup Second-Quarter Results Top Views Amid Jump in Investment Banking Revenue Read Post »

Airline Stocks Face Turbulence After Delta’s Profit Tumbles

/ / Consumer Discretionary /

Delta Air Lines shares tumbled 4.9% after its second-quarter profit dove from a year earlier, putting pressure on American Airlines Group, Spirit Airlines and JetBlue AIrways. Shares of Delta were trading around $44.57. American Airlines declined 4.7% to $10.63, while Spirit was down 2.1% at $2.99, and JetBlue edged down 0.9% to $5.67. Delta on Thursday reported second-quarter profit that fell 29% as its U.S. market saw more supply of seats than demand, as well as higher fuel costs at large. The company is the first airline to report second-quarter earnings

Airline Stocks Face Turbulence After Delta’s Profit Tumbles Read Post »

Delta Isn’t Immune to Contagion From the Struggles of Budget Airlines

/ / Consumer Discretionary /

Delta and stronger airlines are starting to see spill over from the problems plaguing carriers in the budget sector of the industry, JP Morgan analysts write. Troubled carriers, including budget airlines and Southwest, are inclined to maximize flying capacity when demand is high to compensate for losses at slower times of year, the analysts write. “Much like a swimmer that has ventured too far from shore, airlines under duress can be sloppy on the pricing front as they flail about for oxygen.” Delta CEO Ed Bastian says he expects to regain pricing power as airlines throttle back flying plans, but other analysts are skeptical cuts will be big enough. “Maybe the industry stares those losses in the face and makes structural changes, but if history repeats itself, the more likely outcome is short-term tweaks in hopes of drastic change,” Melius Research analysts

Delta Isn’t Immune to Contagion From the Struggles of Budget Airlines Read Post »

Scroll to Top