Investors sent shares higher for several banks reporting before markets opened on Oct. 15.
First Republic Bank shares rose the most, up 6.59% as of 1:05 p.m. ET after the bank reported its third-quarter earnings. The San Francisco-based company reported EPS of $1.31, an increase from $1.19 in the year-ago period and beating S&P Global Market Intelligence consensus estimates of $1.21.
Net interest income grew to $695 million from $634.5 million, but First Republic saw pressure on its net interest margin. Its third-quarter NIM of 2.80% was a decrease from 2.85% in the previous quarter and 2.94% in the year-ago period.
Markets also rewarded JPMorgan Chase & Co.'s third-quarter earnings results, with shares up 4.01% as of 1:07 p.m. ET. The bank posted EPS of $2.68, ahead of estimates of $2.45.
Bank management presented slightly improved guidance for full-year net interest income to reflect a rebound in 10-year U.S. Treasury yields during an earnings call.
Citigroup Inc. and Wells Fargo & Co. shares also rose after reporting earnings, with shares up 1.92% and 3.52%, respectively, as of 1:10 p.m. ET. Citi's third quarter EPS of $2.07 beat estimates of $1.95 but Wells Fargo missed expectations of $1.22 with its reported EPS of 92 cents.
Wells Fargo's quarterly results include adding $1.6 billion to legal reserves related to its retail sales practices, which dragged down EPS by 35 cents.
Both banks saw continued pressure on their NIM. Citi's third-quarter NIM was 2.56%, a decrease from 2.65% in the previous quarter and 2.70% in the year-ago period, while Wells Fargo's NIM of 2.66% represented a 16-basis-point decline from the previous quarter and a 28-basis point decline from the year-ago period. A lower interest rate environment has resulted to Citi and Wells cutting their net interest revenue growth and net interest income projections, respectively.
Elsewhere, Goldman Sachs Group Inc.'s shares opened with a drop of almost 3% before the stock regained most of the losses. The company reported a 27% drop in net income from the prior-year period.
As of 1:07 p.m. ET, the SNL U.S. Bank Index was up 2.60% to 592.63. The S&P 500 was up 1.14% to 3,000.05.
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