In this article, we discuss the 5 key quarterly reports from the financial sector. If you want to read our detailed analysis of these companies, go directly to 10 Key Quarterly Reports from The Financial Sector.
5. The Bank of New York Mellon Corporation (NYSE:BK)
Number of Hedge Fund Holders: 54
Shares of The Bank of New York Mellon Corporation (NYSE:BK) rose over three percent in the pre-market trading session on Friday, July 15, 2022, following its mixed financial performance for the second quarter.
The Bank of New York Mellon Corporation (NYSE:BK) reported earnings of $1.03 per share, missing expectations of $1.12 per share. On the positive side, revenue for the quarter increased 7 percent on a year-over-year basis to $4.3 billion, ahead of the consensus of $4.17 billion.
Commenting on the results, CEO of The Bank of New York Mellon Corporation (NYSE:BK), Todd Gibbons said:
“Our second quarter results once again demonstrated the strength and resilience of our business model, and we are pleased that our Board of Directors approved an increase of the quarterly cash dividend on our common shares by 9% to $0.37 per share.”
4. Morgan Stanley (NYSE:MS)
Number of Hedge Fund Holders: 61
Shares of Morgan Stanley (NYSE:MS) slightly moved down on Thursday, July 14, 2022, after missing financial expectations for the second quarter. The New York-based bank reported earnings of $1.39 per share, well below $1.85 per share in the comparable period of 2021.
Revenue also fell 11 percent on a year-over-year basis to $13.13 billion. Analysts were expecting Morgan Stanley (NYSE:MS) to report earnings of $1.53 per share on revenue of $13.48 billion.
Morgan Stanley (NYSE:MS) also released its segment-wise sales results. Revenue from the Institutional Securities segment decreased to $6.1 billion in the quarter, from $7.1 billion in the year-ago period. In comparison, Wealth Management revenue slipped to $5.7 billion from $6.1 billion last year, while Investment Management revenue dropped to $1.4 billion from $1.7 billion in the year-ago quarter.
Speaking on the results, CEO James P. Gorman said in a statement:
“Overall the Firm delivered a solid quarter in what was a more volatile market environment than we have seen for some time. Strong results in Equity and Fixed Income helped partially counter weaker investment banking activity.”
3. Citigroup Inc. (NYSE:C)
Number of Hedge Fund Holders: 88
Citigroup Inc. (NYSE:C) surpassed profit and revenue expectations for the second quarter. As a result, its shares rose more than four percent in the pre-market trading session on Friday, July 15, 2022.
Citigroup Inc. (NYSE:C) reported earnings of $2.19 per share, crushing analysts’ average estimate of $1.69 per share. Moreover, the quarterly revenue of $19.64 billion also exceeded the consensus of $18.12 billion
If we look at the performance of flagship segments of Citigroup Inc. (NYSE:C), revenue from the institutional clients group jumped 20 percent to $11.4 billion, while personal banking and wealth management revenue rose 6 percent to $6 billion in the quarter. On the downside, revenue from the legacy franchises declined 15 percent to $1.9 billion.
2. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 93
Shares of Wells Fargo & Company (NYSE:WFC) slightly moved down in the pre-market trading session on Friday, July 15, 2022, after the California-based bank failed to meet financial expectations for the second quarter.
The mortgage lending business of Wells Fargo & Company (NYSE:WFC) was hit by higher interest rates during the quarter. Like its peers, the bank had to trim its mortgage staff due to lower demand.
For the second quarter, Wells Fargo & Company (NYSE:WFC) earned 74 cents per share, down from $1.38 per share in the year-ago quarter. Revenue also decreased to $17.02 billion, from $20.27 billion in the second quarter of 2021. Analysts were looking for a profit of 86 cents per share on revenue of $17.6 billion.
1. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 110
Shares of JPMorgan Chase & Co. (NYSE:JPM) hit a new 52-week low of $106.06 on Thursday, July 14, 2022, after announcing weak profit and sales for the second quarter. The financial services giant earned $2.76 per share, down from $3.78 per share in the year-ago period.
In addition, JPMorgan Chase & Co. (NYSE:JPM) posted revenue of $31.6 billion, up 1 percent from the comparable quarter of 2021. The results missed the consensus of $2.91 per share for earnings and $31.95 billion for revenue.
JPMorgan Chase & Co. (NYSE:JPM) also disclosed its segment-wise sales results. Revenue from the consumer & community banking division slipped 1 percent to $12.6 billion, while corporate & investment bank revenue fell 10 percent to $11.9 billion in the quarter. On the bright side, commercial banking revenue increased 8 percent to $2.7 billion, while asset & wealth management revenue rose 5 percent to $4.3 billion.
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