Wednesday, May 30, 2012

Big Banks Earnings Increase: JPMorgan, Wells Fargo, Citigroup Most Profitable



9 of the 10 Largest USA Banks reported net income for the QE 3-31-12, with only Morgan Stanley reported a net loss. Aggregate quarterly net income for the Big Banks was $19.4 billion, which was +$5.1 billion and +36% from the prior QE 12-31-11 ($14.3 billion). Citigroup (+$1.98 billion), JPMorgan (+$1.66 billion), and Goldman Sachs (+$1.10 billion) reported the largest sequential QoQ increases. Bank of America (-$1.34 billion) reported the largest sequential QoQ decrease.

Regardless of the recent minimum $2 billion in trading losses incurred by JPMorgan Chase & Co., that is less than half of their most recent quarterly net income ($5.38 billion). No doubt this misstep materially impacts JPMorgan's financial performance for the current quarter, but to-date the losses do not appear life-threatening. See my recent post Too Big To Fail: JPMorgan Rolls the Dice, Loses $2 Billion.

The Billion Dollar Club: JPMorgan Chase led the way at #1 with $5.38 billion in quarterly net income. Wells Fargo was #2 at $4.25 billion. Citigroup ($2.93 billion) and Goldman Sachs ($2.11 billion) were next. Capital One ($1.40 billion) and U.S. Bancorp ($1.34 billion) followed. Below $1 billion in quarterly net income were #7 PNC Financial Services ($811 million), #8 Bank of America ($653 million), and #9 BNY Mellon ($631 million). Morgan Stanley was last and #10 with a net loss of -$94 million.



The 10 Largest USA Banks reported an average return on assets of +0.78% for the QE 3-31-12, which was a small decrease -0.03% from the prior QE 12-31-11 of +0.81%. The 1%+ Club: Capital One and U.S. Bancorp were the clear leaders with an ROA of +1.61% and +1.57%, respectively. Wells Fargo at 1.27% and PNC Financial Services at 1.12% were #3 and #4. BNY Mellon and JPMorgan Chase were next at +0.83%. Trailing were Citigroup +0.57%, Goldman Sachs +0.41%, and Morgan Stanley +0.38%. Finally Bank of America continues last at #10 at 0.00%, a decrease from the QE 12-31-11 of +0.06%.



Too Big To Stop Growing: Largest USA Banks Get Bigger

Largest USA Banks Ratings: U.S. Bancorp Tops, Goldman Sachs Last

Big Banks Profits Slow: Capital One, US Bancorp, Wells Fargo Shine

$XLF $USB $PNC $WFC $BK $BAC $JPM $C $MS $GS $COF

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