Pages

Showing posts with label Earnings. Show all posts
Showing posts with label Earnings. Show all posts

Sunday, May 28, 2017

Banks Earn $44 Billion in First Quarter 2017







First Quarter Net Income of $44 Billion Is 12.7 Percent Higher Than a Year Ago Higher net operating revenue helped lift quarterly earnings of FDIC-insured institutions to $44 billion in the first quarter of 2017. First quarter net income was $5 billion (12.7 percent) higher than the year-earlier total. More than 57 percent of all banks reported year-over-year increases in quarterly earnings, while only 4.1 percent reported negative net income for the quarter. In the first quarter of 2016, 5.1 percent of banks were unprofitable. The average return on assets (ROA) rose to 1.04 percent, from 0.97 percent a year ago.

Quarterly Net Income

Banks Post 6.3 Percent Year-Over-Year Growth in Net Operating Revenue Net operating revenue - the sum of net interest income and total noninterest income - totaled $183.6 billion, an increase of $10.9 billion (6.3 percent) from a year ago. More than two out of three banks - 69.7 percent - reported year-over-year growth in net operating revenue. Noninterest income increased $2.1 billion (3.4 percent) over first quarter 2016, as trading income rose by $1.5 billion (26 percent), and servicing income increased by $1.9 billion (220.6 percent). Net interest income was $8.8 billion (7.8 percent) higher, as average interest-bearing assets rose 4.9 percent, and the average net interest margin (NIM) improved to 3.19 percent from 3.10 percent a year ago. Much of the NIM improvement occurred at large banks, as higher short-term interest rates lifted average asset yields. Smaller banks, which have a larger share of their assets in longer-term investments, did not see their NIMs benefit from the rise in short-term rates. More than half of all banks - 53.7 percent - reported lower NIMs than a year ago. Noninterest expenses were $4.5 billion (4.3 percent) higher than a year ago. Salary and employee benefits costs rose $3.3 billion (6.6 percent), as FDIC-insured institutions reported 41,469 more employees than a year ago, a 2 percent increase. Expenses for premises and fixed assets increased by $435 million (3.9 percent) compared to first quarter 2016.

Quarterly Net Operating Revenue

Provisions Register First Decline in Almost Three Years Banks set aside $12 billion in provisions for loan losses in the first quarter, a decline of $541 million (4.3 percent) from a year earlier. This is the first time in the past 11 quarters that loss provisions have fallen. A slightly larger proportion of banks reported higher provision expenses - 34.8 percent - compared to the 31.5 percent who had lower quarterly provisions.

Banks Report Higher Charge-Offs on Loans to Individuals During the first quarter, banks charged-off $11.5 billion in loans, an increase of $1.4 billion (13.4 percent) over the total for first quarter 2016. This is the sixth consecutive quarter that charge-offs have posted a year-over-year increase. Most of the increase consisted of higher losses on loans to individuals. Net charge-offs of credit card balances were up $1.3 billion (22.1 percent), while auto loan charge-offs increased $199 million (27.7 percent), and charge-offs of other loans to individuals rose by $474 million (66.4 percent). In contrast, charge-offs on loans to commercial and industrial (C&I) borrowers were $291 million (15.7 percent) lower than a year ago, while residential mortgage charge-offs were $221 million (52.5 percent) lower. The average net charge-off rate in the first quarter was 0.49 percent, compared to 0.46 percent a year earlier.

Noncurrent Loan Balances Continue to Decline The amount of loans and leases that were noncurrent - 90 days or more past due or in nonaccrual status - fell for the 27th time in the last 28 quarters. In the first three months of 2017, noncurrent loan balances declined by $7 billion (5.3 percent). All major loan categories saw noncurrent balances fall during the quarter. Noncurrent residential mortgage loans declined by $5.3 billion (8.2 percent), while noncurrent C&I loans fell by $1.2 billion (4.6 percent). The average noncurrent loan rate improved from 1.42 percent at year-end 2016 to 1.34 percent at the end of March. This is the lowest average noncurrent rate for the industry since third quarter 2007.

Noncurrent Loan Rate and Quarterly Net Charge-Off Rate

Equity Capital Posts Relatively Strong Increase Equity capital increased by $28.6 billion (1.5 percent) during the quarter. Retained earnings contributed $16.7 billion to equity growth in the quarter. This is $1.6 billion (8.9 percent) less than a year ago, as first quarter dividends were $6.6 billion (31.7 percent) higher. Accumulated other comprehensive income posted a $3.3 billion improvement, as a slight decline in long-term interest rates caused a reduction in unrealized losses in securities portfolios.

Pace of Loan Growth Slows Total loans and leases declined by $8.1 billion (0.1 percent) during the three months ended March 31. This is the first quarterly decline in loan balances since first quarter 2013. Credit card loans posted a seasonal decline of $43.7 billion (5.5 percent), as cardholders paid down outstanding balances. Residential mortgage loans fell by $10.2 billion (0.5 percent), reflecting increased loan sales activity. C&I loans increased by $25.6 billion (1.3 percent), while real estate loans secured by nonfarm nonresidential properties rose by $22.5 billion (1.7 percent). Unused loan commitments increased by $119.3 billion (1.7 percent) during the quarter. The slowing in loan growth that began in the second half of last year continued through the first quarter. The 12-month loan growth rate slowed to 4 percent, down from 5.3 percent in calendar year 2016. While all major loan categories saw balances rise over the past 12 months, annual growth rates are now lower than they were in the previous quarter and a year ago. The rate of loan growth remains above the nominal GDP growth rate.

Number and Assets of Banks on the 'Problem Bank' List

FDIC Quarterly Banking Profile

Saturday, May 6, 2017

A Long-Term View Of AIG Earnings

۩ ۩ ۩


AIG reported QE March 2017 financial results on May 3




Summary

● Non-GAAP earnings per share of +$1.36 reverse the prior quarter loss of -$2.72 and soundly beats the analysts’ average estimate of +$1.08. Likewise, GAAP EPS returned to a positive +$1.18.

● The current QE 3-31-17 earnings rebound is likely more cyclical and a similar financial performance expected for QE 6-30-17.

● AIG has a number of corporate issues, including restructuring and hiring a new CEO. Investors await the announcement of a replacement for CEO Peter Hancock.


Read more analysis and see the financial charts at Seeking Alpha!


About AIG

American International Group, Inc. (AIG) is a leading global insurance organization. Founded in 1919, today AIG member companies provide a wide range of property casualty insurance, life insurance, retirement products, and other financial services to customers in more than 80 countries and jurisdictions. These diverse offerings include products and services that help businesses and individuals protect their assets, manage risks and provide for retirement security. AIG’s core businesses include Commercial Insurance and Consumer Insurance, as well as Other Operations. Commercial Insurance comprises two modules – Liability and Financial Lines, and Property and Special Risks. Consumer Insurance comprises four modules – Individual Retirement, Group Retirement, Life Insurance and Personal Insurance. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.


۩ ۩ ۩

Thursday, May 4, 2017

MetLife Earnings Improve, Uptrend Begins?

۩ ۩ ۩


MetLife reported QE March 2017 financial results on May 3




Summary

● Non-GAAP earnings per share of $1.41 solidly beat the analysts’ estimate of $1.27. GAAP EPS returned to a positive +$0.75, after the prior quarter disastrous loss of -$1.94.

● MET stock reached a closing high of $57.39 on December 9, 2016, has declined almost 10% subsequently, and is negative for 2017. Will this positive earnings report reverse the downtrend?

● Additional solid quarterly financial performances are needed, but a base and possibly an uptrend has been established for the stock price.


Read more analysis and see the financial charts at Seeking Alpha!


About MetLife

MetLife, Inc. is a leading global provider of insurance, annuities, employee benefits and asset management, serving approximately 100 million customers and more than 90 of the top one hundred FORTUNE 500® companies. Through its subsidiaries and affiliates, MetLife has operations in nearly 50 countries and holds leading market positions in the United States, Japan, Latin America, Asia, Europe and the Middle East.


۩ ۩ ۩

Monday, May 1, 2017

MetLife Earnings Preview: A Tale Of Two Companies

۩ ۩ ۩


MetLife reports QE March 2017 financial results on May 3




Summary

● Another average financial performance of $1.27 Non-GAAP earnings per share is expected by MetLife for the quarter ended March 2017. GAAP financial performance has been volatile and created investor uncertainty.

● MET stock reached a closing high of $57.39 on December 9, 2016, has declined almost 10% subsequently, and is negative for 2017.

● CEO Steven Kandarian continues as Chairman and CEO after his mandatory retirement was waived by the Board of Directors in 2016.


Read more and see the charts at Seeking Alpha!


About MetLife

MetLife, Inc. is a leading global provider of insurance, annuities, employee benefits and asset management, serving approximately 100 million customers and more than 90 of the top one hundred FORTUNE 500® companies. Through its subsidiaries and affiliates, MetLife has operations in nearly 50 countries and holds leading market positions in the United States, Japan, Latin America, Asia, Europe and the Middle East.


۩ ۩ ۩

Wednesday, April 19, 2017

U.S. Bancorp Earnings Review: Exceptional, Not Typical

۩ ۩ ۩


US Bancorp reported QE March 2017 financial results on April 19




Summary

● U.S. Bancorp reported $0.82 earnings per share, beating analysts’ estimates by $0.02 with an excellent 7.9% EPS increase year over year.

● Earnings performance continues at exceptional levels as outgoing CEO Richard Davis has posted quarter after quarter of maximizing shareholder wealth.

● Andrew Cecere begins his tenure as CEO with this new quarter ending June 2017.


Read more and see the charts at Seeking Alpha!


About US Bancorp

Minneapolis-based U.S. Bancorp (NYSE: USB), with $446 billion in assets as of December 31, 2016, is the parent company of U.S. Bank National Association, the fifth largest commercial bank in the United States. The Company operates 3,106 banking offices in 25 states and 4,842 ATMs and provides a comprehensive line of banking, investment, mortgage, trust and payment services products to consumers, businesses and institutions.

۩ ۩ ۩

Tuesday, April 18, 2017

US Bancorp Earnings Preview: Diminishing Returns

۩ ۩ ۩


US Bancorp reports QE March 2017 financial results on April 19




Summary

● US Bancorp has posted solid quarterly financial position and performance since the 2008 - 2009 financial crisis.

● Andrew Cecere, President and Chief Operating Officer, succeeds Richard Davis as Chief Executive Officer on Tuesday, April 18 at the annual shareholders’ meeting.

● The financial statements show a conservative, traditional banking approach, which has been called “cautious, plain vanilla banking.

Read more and see charts at Seeking Alpha!


About US Bancorp

Minneapolis-based U.S. Bancorp (NYSE: USB), with $446 billion in assets as of December 31, 2016, is the parent company of U.S. Bank National Association, the fifth largest commercial bank in the United States. The Company operates 3,106 banking offices in 25 states and 4,842 ATMs and provides a comprehensive line of banking, investment, mortgage, trust and payment services products to consumers, businesses and institutions.

۩ ۩ ۩

Friday, February 22, 2013

Bank Ratings: U.S. Bancorp Tops, Morgan Stanley Last

Bank Ratings Through December 31, 2012

The 10 Largest USA Banks have reported fourth quarter 2012 financial results, i.e., financial performance for the quarter ending 12-31-12 and financial position at 12-31-12. There were several changes in the quarterly ratings: 4 upgrades and 2 downgrades. The median score is "D" and the average score for the quarter ending December 2012 is "C+", an increase from the average score of "C" for the prior quarter ending September 2012.

Largest USA Banks Rankings The 10 Largest USA Banks ratings are presented below in a percentage format. The ratings range from A+ (100%) to G- (0%).



Rating, Bank, Change
A     U.S. Bancorp
A-    Wells Fargo
A-    Capital One
A-    PNC Financial Services, upgrade from B+
B+   BNY Mellon, upgrade from B
B-    Citigroup, upgrade from E+
C+   Bank of America, downgrade from B-
D     JPMorgan Chase
D     Goldman Sachs, upgrade from F-
G     Morgan Stanley, downgrade from E-
B+   Average

Above Average U.S. Bancorp is the sole leader at "A", followed by Wells Fargo, Capital One, and PNC Financial Services at "A-". These 4 banks have moved positively beyond the 2008 financial crisis. BNY Mellon and Citigroup are next at "B+" and "B-", respectively.

Average Bank of America is at the average of "C+".

Below Average JPMorgan Chase and Goldman Sachs are next at "D", which is the median rating. Trailing the field is Morgan Stanley at a dismal "G".

Based on fundamental analysis of both financial position and performance on a short-term and long-term basis, the largest 10 USA banks rankings have been updated with a composite score. There is no subjectivity involved from quarter to quarter, just objective data. The ratings are the result of the output from a model, with the latest quarterly financial statement data input.

The score can range from a high of A+ to a low of G-, a total of 21 tiers. The median score is D in this rating system. The average score can vary each quarter.

Financial position is weighted more than financial performance. Therefore, the rating is primarily a gauge of financial position, balance sheet strength, which indicates the ability of the bank to withstand a downturn in financial performance from internal and/or external events. The rating is secondarily a gauge of financial performance, both short-term and long-term. A measure of financial safety and soundness, not future financial performance, is the predominant intent of the ratings.

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

AIG Earnings Review: Closes Door on Financial Crisis

۩ ۩ ۩

AIG reported QE December 2012 financial results on February 21

AIG Weathers Storm Sandy, Posts Profit

Self-proclaimed "leading international insurance organization" American International Group (AIG) reported a beat on Non-GAAP core operating earnings per share of $0.20 versus an expected loss of -$0.08 for the quarter ended December 2012. This is well below the prior year EPS of $0.77 (revised) but encouraging nonetheless as Hurricane Sandy losses were recognized this quarter. Non-GAAP profit was $290 million compared to $1.5 billion a year ago. Read more and see charts at Seeking Alpha.

About AIG

American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide propertycasualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG Common Stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.

۩ ۩ ۩

Wednesday, February 20, 2013

AIG Earnings Preview: Slow Quarter Expected

۩ ۩ ۩

AIG reports QE December 2012 financial results on February 21

AIG Earnings Preview: Slower Quarter On Deck

Self-proclaimed "leading international insurance organization" American International Group (AIG) reports quarter ending December 2012 earnings on Thursday, February 21, after market close. CEO Robert Benmosche is expected to deliver investors a slower quarter for both GAAP and Non-GAAP earnings per share. Read more and see charts at Seeking Alpha.

About AIG

American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide propertycasualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG Common Stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.

۩ ۩ ۩

Tuesday, February 19, 2013

MetLife Reports Respectable Earnings

۩ ۩ ۩


MetLife reported QE December 2012 financial results on February 13

MetLife Earnings: Where Do We Go From Here?

Global insurance provider MetLife (MET) reported respectable Non-GAAP financial results in operating earnings per share ($1.25), net revenues ($18.36 billion), operating income ($1.97 billion), and operating earnings ($1.40 billion) for the quarter ending December 2012. This is a beat of $0.07 on Non-GAAP earnings per share. Read more and see the charts at Seeking Alpha.

About MetLife

MetLife, Inc. is a leading global provider of insurance, annuities and employee benefit programs, serving 90 million customers. Through its subsidiaries and affiliates, MetLife holds leading market positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. For more information, visit www.metlife.com.

$MET $XLF

 ۩ ۩ ۩

Friday, February 8, 2013

Visa Earnings Rise

۩ ۩ ۩

Visa reported QE December 2012 financial results on February 6

Visa Earnings Push Higher

Visa (V) reported record gross revenues ($3.399 billion), net revenues ($2.85 billion), and record operating income ($1.80 billion) for the quarter ending December 2012. Net income ($1.293 billion) was the second best ever, as was GAAP earnings per share ($1.93). However, a tax benefit of $0.11 was included in earnings per share. Margins were solid. Total transactions volume increased +6% worldwide over December 2011. Read more and see charts at Seeking Alpha.

۩ ۩ ۩

Sunday, January 27, 2013

Morgan Stanley Earnings Review: Up and Down They Go


Morgan Stanley reported QE December 2012 financial results on January 18

Morgan Stanley earnings per share were $0.25. Though meager, this is a major rebound of +145% from the prior quarter (-$0.55 loss per share) and whopping +267% spike from the prior year (-$0.15 loss per share). In the past 16 quarters, the average earnings per share has been $0.15, consisting of 7 quarters of losses and 9 quarters of earnings. This has ranged from a low of -$1.10 in June 2009 to a high of +$1.15 in September 2011. Therefore, from a historical perspective, Morgan Stanley actually had an above average quarter!

Financial performance, or lack thereof, is flat with a return on assets just above break-even at +0.08% for 2012. Financial position is weak and capital is marginal. Risk management has been ineffective.





Morgan Stanley does this to themselves and to their clients. CEO James Gorman noted 4 quarters ago that MS continues "addressing a number of outstanding strategic and legacy issues." I guess that's one way to say it. Another way to say it is: we lie, cheat, and steal. The general public is not as familiar with Morgan Stanley as they are Goldman Sachs, JPMorgan, Bank of America, Citigroup, et al. in the Wall Street Banksters syndicate. They are just as criminally inclined if not more so.

At QE 12-31-12, I have rated Morgan Stanley a "G" on a scale of A+ to G-. This is a downgrade from "E-" at the prior QE 9-30-12. The median rating is "D" and the average rating at QE 9-30-12 was "C". Financial position is weighted more than financial performance. The QE 9-30-12 bank ratings review is here and the QE 12-31-12 bank ratings will be posted soon.





James P. Gorman, Chairman and Chief Executive Officer, said, "After a year of significant challenges, Morgan Stanley has reached a pivot point. We demonstrated meaningful progress in our Wealth Management Joint Venture, reaching the highest pre-tax margin since the inception of the JV. We charted a path to acquire the remainder of the JV. We are ahead of our risk-weighted asset reduction targets for Fixed Income and Commodities, while continuing to focus on our strengths within business and strategic linkages across the Firm and investing for the evolving regulatory environment. We continued to demonstrate leadership in Investment Banking and Equity sales and trading. Our Firm is now poised to reach the returns of which it is capable on behalf of our shareholders."

$MS $XLF

Capital One Earnings Review: Performance Slows


Capital One reported QE December 2012 financial results on January 17

Capital One earnings per share of $1.41 was a -30% drop from the prior quarter ($2.01) but a sizable +60% jump from the prior year ($0.88). CEO Richard Fairbank is expected to report an improved financial performance next quarter.

Financial position and capital remain very strong. Risk management appears very good. Operating expenses and losses continue somewhat high historically in relation to gross revenues.





At QE 12-31-12 I have rated Capital One an "A-" on a scale of A+ to G-. This is no change in the rating from the prior QE 9-30-12. The median rating is "D" and the average rating at QE 9-30-12 was "C". Financial position strength is weighted more than financial performance. The QE 9-30-12 bank ratings review is here.







"Capital One remains well positioned to deliver sustained shareholder value through sure-footed execution, substantial capital generation, and disciplined capital allocation for the benefit of our shareholders," said Richard D. Fairbank, Chairman and Chief Executive Officer. "As a first step, we expect to return to a meaningful dividend in 2013, following the completion of the current CCAR process."

"Seasonal expense and margin trends led to a reduction in fourth quarter earnings compared to the previous quarter," said Gary L. Perlin, Capital One's Chief Financial Officer. "With a few exceptions largely related to these seasonal patterns, fourth quarter 2012 results give us a good picture of what to expect in terms of pre-provision earnings in 2013, assuming little change in the external environment."

$COF $XLF

PNC Earnings Review: Poised to Perform


PNC Financial Services reported QE December 2012 financial results on January 17

PNC earnings performance slowed from the prior quarter yet was a solid increase from the prior year. Earnings per share of $1.24 was down -24% QoQ but up an impressive +46% YoY. CEO James Rohr overall delivered a good quarter.

Financial position continues impressive with very strong capital. Net loans are almost 60% of total assets, which should translate into ongoing profits. Risk management appears very good. Operating expenses and losses continue high historically in relation to gross revenues, mostly due to the RBC Bank (USA) acquisition and merger.





At QE 12-31-12, I have rated PNC Financial Services an "A-" on a scale of A+ to G-. This is an upgrade from "B+" at the prior QE 9-30-12. The median rating is "D" and the average rating at QE 9-30-12 was "C". Financial position is weighted more than financial performance. The QE 9-30-12 bank ratings review is here.







"PNC expanded its businesses significantly in 2012," said James E. Rohr, chairman and chief executive officer. "Our balance sheet strength along with our committed employees allowed us to grow customers, loans and deposits across our franchise and expand into Southeastern markets. While we are pleased with the progress we have made, our financial results do not yet reflect the full potential from our investments. Our commitment to revenue growth, expense reduction and efficient capital management in 2013 should position PNC to deliver even greater shareholder value."

$PNC $XLF

Saturday, January 26, 2013

Citigroup Earnings Review: Downtrend Reversed!


Citigroup reported QE December 2012 financial results on January 17

Citigroup earnings rebounded from the prior quarter and the prior year. However, current earnings per share of $0.38 is below the 16-quarter average of $0.58. Michael Corbat is now CEO, replacing Vikram Pandit, in this dawn of a new era.

Financial performance is stabilizing and slightly uptrending. Financial position is solid and capital continues strengthening. The problem is risk management has been proven incompetent over the years. Operating expenses and losses continue high historically in relation to gross revenues. Citigroup ($1.86 trillion total assets) is in the Trillion Dollar Assets Club with JPMorgan, Bank of America, and Wells Fargo.





At QE 12-31-12, I have rated Citigroup a "B-" on a scale of A+ to G-. This is an upgrade from "E+" at the prior QE 9-30-12. The median rating is "D" and the average rating at QE 9-30-12 was "C". Financial position is weighted more than financial performance. The QE 9-30-12 bank ratings review is here.







Michael Corbat, Citigroup's Chief Executive Officer, said, "Our bottom line earnings reflect an environment that remains challenging – with businesses working through issues like spread compression and regulatory changes – as well as the costs of putting legacy issues behind us. However, we did make progress on several fronts. At 8.7%, we reached the target for our year-end Basel III Tier 1 Common ratio. We continue to have a very liquid balance sheet and a high-quality credit portfolio in our core businesses. It will take some time to work through the challenges of the current environment but realizing our core earnings potential, as well as improving our returns on assets and tangible equity, are critical goals going forward."

$C $XLF

Bank of America Earnings Review: Limping Along


Bank of America reported QE December 2012 financial results on January 17

A Bank of America earnings prayer: How long oh Lord? How long, oh Lord, must this greatest banking debacle in history continue? When reviewing Bank of America, the World's Most Unstable Bank, we are talking pennies, as in pennies per share. This quarter earnings per share were $0.03, last quarter was $0.00 per share. The 18-quarter average has been a loss per share of -$0.03. Lowered expectations and a divine entreaty sum up financial performance.



CEO Brian Moynihan continues cleaning up the financial crisis carnage. Moynihan announced 2 quarters ago a Project New BAC: a multi-year, multi-billion dollar cost cutting plan which will include a workforce reduction of tens of thousands. The prior "banking" model had shattered and collapsed into rubble.

The foremost problem is contingent liabilities, ongoing legacy losses, that surface and the lawsuits and government regulatory actions that result. After reserving billions of dollars, the worst of the incredible and extraordinary losses appear accounted for. Only time and fate will tell.

The financial performance volatility has lessened in recent quarters. Risk management consists of all hands on deck searching the skies for incoming realized losses and hoping they are adequately reserved for. Financial position has stabilized and capital is actually strong. Operating expenses and losses are too high in relation to gross revenues.



At QE 12-31-12, I have rated Bank of America a "C+" on a scale of A+ to G-. This is a downgrade from "B-" at the prior QE 9-30-12. The median rating is "D" and the average rating at QE 9-30-12 was "C". Financial position is weighted more than financial performance. The QE 9-30-12 bank ratings review is here.





“We enter 2013 strong and well positioned for further growth,” said Chief Executive Officer Brian Moynihan. “Double-digit growth since last year in mortgage production, commercial lending, and Global Markets revenue demonstrates the power of deeper customer and client relationships as we intensify the focus on connecting all our capabilities.”

"We addressed significant legacy issues in 2012 and our strengths are coming through," said Chief Financial Officer Bruce Thompson. "Capital and liquidity remain strong and credit continues to improve. Our primary focus this year is to grow revenue, manage expenses and drive core earnings growth."

$BAC $XLF

Friday, January 25, 2013

BNY Mellon Earnings Review: Another Average Quarter


BNY Mellon reported QE December 2012 financial results on January 16

BNY Mellon earnings per share were about average at $0.53, compared to the 13-quarter average of $0.51. Net revenues ($3.62 billion), operating income ($853 million), and net income ($646 million) were also near the long-term averages.

CEO Gerald Hassell continues a conservative strategy and financial position which minimizes volatility and surprises in the long-run. Financial position is stable with a strong capital position. Risk management appears very good. A share repurchase program continues in effect.





At QE 12-31-12 I have rated Bank of New York Mellon a "B+" on a scale of A+ to G-. This is an upgrade from "B" at the prior QE 9-30-12. The median rating is "D" and the average rating at QE 9-30-12 was "C". Financial position strength is weighted more than financial performance. The QE 9-30-12 bank ratings review is here.







“We are pleased to report strong year-over-year growth in fees in our Investment Management, Asset Servicing, Clearing and Treasury Services businesses. We benefited from the improvement in market values and, more importantly, from our relentless focus on generating organic growth with our broad client base. We are also driving our operational excellence initiatives to improve our efficiency and help mitigate the impact on our high margin revenues due to the low interest rate environment and tepid capital markets activity. Our balance sheet and capital ratios strengthened in 2012 even after giving effect to the repurchase of approximately $1.1 billion of our common shares in 2012,” said Gerald L. Hassell, chairman and chief executive officer of BNY Mellon.

“I wish to thank all of my colleagues across the company for their tremendous dedication and ongoing focus on improving our performance, delivering excellence to our clients and creating shareholder value,” added Mr. Hassell.

$BK $XLF

Thursday, January 24, 2013

US Bancorp Earnings Review: Peaking Performance?

US Bancorp reported QE December 2012 financial results on January 16

US Bancorp earnings continue at excellent performance levels as CEO Richard Davis posts quarter after quarter of maximized profits in a difficult macroeconomic environment. In fact, 2012 was a record year. This quarter, Davis was able to maintain earnings per share, net revenues, operating income, net income, operating margin, net margin, and return on assets near last quarter's record levels. US Bancorp remains on top as the very best larger USA bank.

Diminishing returns is the uphill climb for US Bancorp. CEO Davis, through stellar performance, may have reached the summit of efficient profits. However, CEO Davis has proven me wrong in previous quarters so do not count US Bancorp out yet. There is only so high financial institution performance can reach without expansion or acquisitions. Risk management has proven excellent. Financial position and capital are very strong.





At QE 12-31-12 I have rated US Bancorp an "A" on a scale of A+ to G-. This is no change in the rating from the prior QE 9-30-12. The median rating is "D" and the average rating at QE 9-30-12 was "C". Financial position strength is weighted more than financial performance. The QE 9-30-12 bank ratings review is here.







U.S. Bancorp Chairman, President and Chief Executive Officer Richard K. Davis said, “2012 was a great year for our Company, as we achieved record annual earnings of $5.6 billion, or $2.84 per diluted common share. Further, our 2012 full year results included record total net revenue of $20.3 billion, representing growth in net interest income and fee revenues, as well as controlled expenses. Additionally, we achieved positive operating leverage for both the year-over-year quarter and full year. Our returns on average assets and average common equity for 2012 of 1.65 percent and 16.2 percent, as well as our efficiency ratio of 51.5 percent, surpassed our performance in 2011 and remain industry leading.

$USB $XLF

Goldman Sachs Earnings Review: Multi-Year High for Banksters!


Goldman Sachs reported QE December 2012 financial results on January 16

Goldman Sachs earnings have attained post-financial crisis peaks with a 12-quarter high for earnings per share ($5.60) and an 11-quarter high for net income ($2.89 billion). The World's Most Hated Banksters, led by CEO Lloyd Blankfein, have achieved redemption from shareholders, at least for now.

Financial position has been stable, but capital continues marginal. Risk management appears to be attempting to evade prosecution for criminal activities, settling without admitting guilt, and bribing Congress to keep the financial regulators away. Negative karma continues at epic levels but give the Devil his due for this quarter.





At QE 12-31-12, I have tentatively rated Goldman Sachs a "D" on a scale of A+ to G-. This is an upgrade from "F-" at the prior QE 9-30-12. The median rating is "D" and the average rating at QE 9-30-12 was "C". Financial position is weighted more than financial performance. The QE 9-30-12 bank ratings review is here.





“While economic conditions remained challenging for much of last year, the strengths of our business model and client franchise, coupled with our focus on disciplined management, delivered solid performance for our shareholders,” said Lloyd C. Blankfein, Chairman and Chief Executive Officer. “The firm’s strategic position provides a solid basis on which to grow and generate superior returns.”

$GS $XLF

Seeking Alpha

Amazon!