hogged the second-quarterspotlight — and that after a rough start to the year and another delay in . Yet the largest U.S.banks performed well enough during the period to leave industry observersfeeling "really good," as Lisa Kwasnowski of DBRS put it, especiallyabout their survival skills amid global uncertainty.
The full effect of a U.K. outsidethe EU has yet to be determined, but, in these early days at least, it hasresulted in a spike in trading. RBC Capital Markets' analysts calculate thatrevenues from fixed income, currencies and commodities jumped year over year by14% for
Bottom lines were down, nonetheless. Citi and BofA, inparticular, saw year-over-year drops in EPS and operating revenue. The two havestruggled to right their ships post-crisis, though Kwasnowski said in aninterview that both have made headway. Citi still has its bad bank, CitiHoldings, which has shrank to $66billion in assets.
At BofA, legacy assets were finally small enough not tomerit separate reporting, and the company announced it has found evenmore . The bank reportednoninterest expenses of $13.49 billion, a drop of 8% from the linked quarter.Rafferty Capital Markets' Dick Bove pointed out in a note: "It isoften forgotten how big and successful Bank of America has been of late." Oppenheimer's Chris Kotowskicommented in a note that "the noise is
Based on the 2016 stresstest and
|
Meanwhile, JPMorgan and Wells Fargo & Co.
Underwriting has stayed tight and overall loan lossprovisions have declined. At Citigroup, it tumbled 38% from a high of $2.26billion in the last quarter of 2015. The other three saw quarter-over-quarterdecreases, and JPMorgan's and Wells' were well above their net charge-offs.
"Whenone considers how massive the dislocation in energy and metals markets
Click here for a template that compares the market performance for a portfolio of companies. Click here to view a webinar on SNL's Peer Analytics tool to learn how to run a custom peer analysis for SNL-covered public companies. |