Second Quarter Earnings of US Major Banks

Second Quarter Earnings of US Major Banks

With the second earnings quarter now on the books, investors, analysts, and traders have all turned their attention to the earning season. With vaccinations in full speed, hints of economic recovery, and market volatility, it’s been hard to guess whether the banks will be able to top their first-quarter earnings this year.  

Most banks reported decent first-quarter earnings and have maintained that the credit outlook continues to look strong. The banks had set aside billions of dollars for anticipated loan losses last year as the pandemic swept across the globe. However, borrowers have held up better than expected, and so the banks have been releasing the reserves. 

This season’s earnings reports depict a continued robust recovery for Wall Street and its boundless appetite for investment banking.  

JPMorgan Chase Earnings 2021 

Revenue: 

Q1: $33.1 billion  

Q2: $31.4 billion  

Net Income: 

Q1: $14.3 billion 

Q2: $11.9 billion 

Earnings Per Share: 

Q1: $4.50 per share 

Q2: $3.78 per share 

“Consumer and wholesale balance sheets remain exceptionally strong as the economic outlook continues to improve,” commented the CEO Jamie Dimon, noting “the increasingly healthy condition of our customers and clients.” 

Bank of America Earnings 2021 

Revenue: 

Q1: $22.8 billion 

Q2: $21.5 billion 

Net Income: 

Q1: $9.2 billion 

Q2: $8.1 billion 

Earnings Per Share: 

Q1: $0.86 per share (diluted) 

Q2: $1.03 per share (diluted) 

Citigroup 

Revenue: 

Q1: $19.3 billion 

Q2: $17.5 billion 

Net Income: 

Q1: $7.9 billion 

Q2: $6.2 billion 

Earnings Per Share: 

Q1: $3.62 per share (diluted) 

Q2: $2.85 per share (diluted) 

“The pace of the global recovery is exceeding earlier expectations and with it, consumer and corporate confidence is rising,” CEO Jane Fraser commented. “We saw this across our businesses, as reflected in our performance in investment banking and equities as well as markedly increased spending on our credit cards. While we have to be mindful of the unevenness in the recovery globally, we are optimistic about the momentum ahead.” 

Wells Fargo  

Revenue: 

Q1: $18.5 billion 

Q2: $20.3 billion 

Net Income: 

Q1: $4.7 billion 

Q2: $6.0 billion 

Earnings Per Share: 

Q1: $1.02 per share (diluted) 

Q2: $1.38 per share (diluted) 

“Wells Fargo benefited from the continued economic recovery, strong markets that helped drive gains in our affiliated venture capital businesses, and our progress on improving efficiency, but the headwinds of low interest rates and tepid loan demand remained,” commented Charlie Scharf, CEO. 

Morgan Stanley 

Revenue: 

Q1: $15.7 billion 

Q2: $14.8 billion 

Net Income: 

Q1: $4.1 billion 

Q2: $3.5 billion 

Earnings Per Share: 

Q1: $2.19 per share (diluted) 

Q2: $1.85 per share (diluted) 

Goldman Sachs 

Revenue: 

Q1: $17.7 billion 

Q2: $15.4 billion 

Net Income: 

Q1: $6.8 billion 

Q2: $5.5 billion 

Earnings Per Share: 

Q1: $18.60 per share (diluted) 

Q2: $15.02 per share (diluted) 

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