Bank of America profits jump 18% Goldman Sachs announces mixed results. Morgan Stanley en deck

Banks continue to stream earnings reports this week as investors cautiously eye the results after March’s rout of bank stocks. Bank of America beat expectations with a big surprise earnings early Tuesday. Goldman Sachs posted mixed results while Bank of New York Mellon was in line with expectations. Morgan Stanley and US Bancorp reported earnings on Wednesday.

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JPMorgan (JPM), Wells Fargo (WFC) And Citigroup (c) last week with significant profits for major banks, driven by higher net interest income. However, analysts expect the decline in investment banking revenue to impact results.

American bank

resultsBank of America earnings jumped 17.5% to 94 cents a share, with revenue up 13.4% to $26.3 billion.

expectations: Analysts polled predict FactSet American bank (Buck) increased earnings 2 cents to 82 cents per share on revenue growth of 8.3% to $25.16 billion.

Average deposits decreased to $1.91 trillion, down from $1.93 trillion at the end of the year, and from $2.07 trillion in the first quarter of 2022, respectively.

Net interest income rose about 25% to $14.45 billion. Investment banking revenue fell 20% to $1.2 billion, but was slightly better than FactSet’s forecast of $1.02 billion.

prospectsFactSet analysts expect adjusted earnings to rise approximately 5% to $3.39 per share for fiscal year 2023 with revenue growing 5.2% to $99.845 billion.

BAC stock fell at the open Tuesday, after gaining 2.1% pre-market following the results. The shares have collapsed nearly 14% over the past three months. Bank of America stock is up more than 15% from its March low, but is still down 8.3% this year.

Goldman Sachs

resultsEarnings: Goldman Sachs fell 18% to $8.79 per share on the back of revenue falling 5% to $12.22 billion.

expectations: Wall Street predicted Goldman Sachs (pEarnings declined for the fifth consecutive quarter, declining 24% to $8.14 per share, while revenue decreased 1.3% to $12.76 billion.

Investment banking revenue fell 26% to $1.58 billion, slightly more than the expected decline to $1.2 billion. Net interest income fell 3% during the year to $1.78 billion.

prospectsAnalysts expect Goldman Sachs’ full-year earnings to rise 7% to $32.26 per share on revenue growth of 4.2% to $49.39 billion.

GS stock fell 2.8% early Tuesday after earnings. Shares are down 6% from their price over the past three months and are down 4% so far this year.

Bank of New York Mellon

resultsBank of New York Mellon’s earnings rose 30% to $1.12 per share on revenue growing 11% to $4.36 billion.

Average bank deposits decreased to $274 billion, down 3% from the previous quarter and 13% from the first quarter of 2022. Net interest income jumped 62% during the year to $1.13 billion

expectationsBank of New York Mellon (BK) to report a 30% increase to $1.12 per share as revenue jumped 12% to $4.4 billion.

prospectsBank of New York Mellon earnings are expected to rise 68.6% to $4.89 per share on revenue growth of 8.3% to $17.74 billion.

BK stock fell early Tuesday after the results. Shares are down 11.2% over the past three months and are down 3% in 2023.

Morgan Stanley

expectations: Wall Street Outlook Morgan Stanley (MsEarnings fell 18.5% to $1.68 per share while revenue fell 5.6% to $13.97 billion.

Analysts expect a 10% jump in net interest income to $2.4 billion, which was erased by the 33% drop in investment banking revenue to $1.13 billion. Analysts expect average deposits to rise for the second consecutive quarter, reaching $347.7 billion.

prospects: FactSet expects Morgan Stanley’s dividend to rise 6% in fiscal 2023 to $6.75 per share. The consensus expects revenue to increase 4% to $55.87 billion.

MS stock has stumbled 2.6% over the past three months but is up 5% this year.

US Bancorp

expectations: sees Wall Street US Bancorp (USBEarnings rose 11% to $1.10 a share. The consensus is that revenue increased 27.5% to $7.14 billion.

Experts expect average bank deposits to rise to $515 billion, up only slightly on a quarterly basis, but a 13% jump from a year ago.

prospectsAnalysts expect Bancorp US fiscal 2023 earnings to rise approximately 29% to $4.75 per share. Revenue is expected to increase by 20% to $29.23 billion.

USB stocks are down about 25% over the past three months and are down 18.4% this year.

You can follow Harrison Miller for more stock news and updates on Twitter @employee

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