Bank Earnings:Historical Results/2023 Q2

Big Banks

Bank	Key Items	Estimate	Actual	Remarks from bank heads
JP Morgan Chase	Revenue	$38.96 billion	$42.4 billion	CEO Jamie Dimon: “The U.S. economy continues to be resilient. Consumer balance sheets remain healthy, and consumers are spending, albeit a little more slowly. Labor markets have softened somewhat, but job growth remains strong. That being said, there are still salient risks in the immediate view—many of which I have written about over the past year. Consumers are slowly using up their cash buffers, core inflation has been stubbornly high (increasing the risk that interest rates go higher, and stay higher for longer), quantitative tightening of this scale has never occurred, fiscal deficits are large, and the war in Ukraine continues, which in addition to the huge humanitarian crisis for Ukrainians, has large potential effects on geopolitics and the global economy."
	Adjusted EPS	$4.00 per share	$4.37 per share
	Provision for credit losses	$2.72 billion	$2.899 billion(+27.4% Q/Q and +163% Y/Y).
	Net interest income		$14.5 billion(+67% Y/Y), excluding First Republic bank it was up 40% Y/Y.
	Average deposits		-6% Y/Y and +3% Q/Q
	Average Loans		+13% Y/Y and +10% Q/Q
	Debit and credit card sales volume		+7% Y/Y
Wells Fargo	Revenue	$20.12 billion	$20.53 billion	“Our company remains strong and we have significant opportunities to continue to improve how we serve our customers. The U.S. economy continues to perform better than many had expected, and although there will likely be continued economic slowing and uncertainty remains, it is quite possible the range of scenarios will narrow over the next few quarters. We remain prepared for a variety of scenarios and our steadfast commitment to our risk and control buildout coupled with our continued focus on financial and credit risk management allows us to support our customers throughout economic cycles,” CEO Charlie Scharf concluded.
	Adjusted EPS	$1.16	$1.25
	Provision for credit losses		$1.71 billion(+195% Y/Y and +46% Q/Q).
	Net interest income		$13.2 billion(+29% Y/Y), but was down 1% Q/Q. The company said it expects it to rise 14% in 2023 instead of its earlier projection for 10% growth.
	Net interest margin		3.09% versus 3.20% in Q1 2023 and 2.39% in Q1 2022
	Average deposits		$1,347.4 billion(-6.8% Y/Y)
	Average Loans		$ 945.9 billion (+2% Y/Y)
	Net loan charge-offs		$764(+122% Y/Y and 26% Q/Q).	"As expected, net loan charge-offs increased from the first quarter. Consumer charge-offs continued to deteriorate modestly. Commercial charge-offs increased driven by a small number of borrowers in Commercial Banking, with little signs of systemic weakness across the portfolio, and higher losses in commercial real estate, primarily in the office portfolio." CEO Charlie Scharf said.
Citi Group	Revenue	$19.29 billion	$19.44 billion	“Amid a challenging macroeconomic backdrop, we continued to see the benefits of our diversified business model and strong balance sheet,” CEO Jane Fraser said in the press release.
	Adjusted EPS	$1.30	$1.33
	Provision for credit losses		$161 million( -57% Y/Y and -33% Q/Q)
	Net interest income		$13.90 billion (+16.2% Y/Y and +4.1% Q/Q)
	Net interest margin		2.48% versus 2.41% in Q1 2023 and 2.24% in Q2 2022.
	Deposits		$1.32 billion(-1% Q/Q).
	Loans		$661 billion(+1% Q/Q).
	Net credit losses		$1.5 billion(+77% Y/Y and 16% Q/Q).
Bank of America	Revenue	$25.05 billion	$25.33 billion	“We continue to see a healthy U.S. economy that is growing at a slower pace, with a resilient job market,” CEO Brian Moynihan said in the press release.
	Adjusted EPS	84 cents	88 cents
	Provision for credit losses		$1.1 billion(+120% Y/Y and 22% Q/Q).
	Net interest income		$7.4 billion(+19% Y/Y).
	Deposits		$1.9 trillion(-7% Y/Y and -1% Q/Q)
	Loans		$1.05 trillion(+3% Y/Y and +0.9% Q/Q)
	Net charge-offs		$869 milion(+52% Y/Y and +7.6% Q/Q).
Morgan Stanley	Revenue	$13.08 billion	$13.46 billion	“The Firm delivered solid results in a challenging market environment. The quarter started with macroeconomic uncertainties and subdued client activity, but ended with a more constructive tone. Consistent with our strategy, we continued to attract client assets – Wealth and Investment Management added $100 billion in net new assets, bringing in over $200 billion year-to-date. Our Institutional businesses navigated the markets well through macro uncertainties. We finished the quarter in a strong capital position and raised our quarterly common dividend by 7.5 cents for the second year in a row. We remain confident in our ability to grow in various market environments while maintaining a strong capital position," CEO James P. Gorman said in the press release.
	Adjusted EPS	$1.15	$1.24
	Provision for credit losses		$161 million(+59% Y/Y and -31% Q/Q)
	Net interest income		$2.156 billion(+23% Y/Y and -0.09% Q/Q)
	Deposits		$349 billion(+0.6% Y/Y and 0.2% Q/Q)
	Loans		$224 billion(+5% Y/Y and +1% Q/Q)

Regional Banks

Summary

• EPS of State Street Bank, Bank of New York Melon, Charles Schwab, and PNC Financial, topped estimates. Only revenue of PNC Financial missed estimates.
• The four banks saw their deposits decline by an average of 2.5% Q/Q.
• Net interest margins for the four banks declined sequentially by an average of 14.5 basis points.

Bank	Key Items	Estimate	Actual	Remarks from bank heads
State Street Bank	Revenue	$3.13 billion	$3.11 billion	“Our second-quarter results reflect the strength of our business model year-over-year as strong net interest income growth, a significant expansion in front office solutions and higher securities finance revenue contributed to improved EPS and ROE. Quarter-over-quarter we saw good fee momentum across a number of our businesses, helped by accelerated onboarding of our tobe-installed AUC/A pipeline, while we continued to invest and serve our clients," CEO Ron O'Hanley said. “Our strong balance sheet and capital generation enabled us to return approximately $1.3 billion to shareholders through common share repurchases and dividends in the second quarter. We are also pleased by the results from this year's supervisory stress test, which once again confirm the resiliency and strength of our franchise. For the third consecutive year, we announced our plan to increase our per share common stock dividend by 10%, and we intend to continue to execute on our common share repurchase authorization of up to $4.5 billion during 2023, subject to market conditions and other factors.” he added.
	Adjusted EPS	$2.08	$2.17
	Provision for credit losses		-$18 million versus $44 million in Q1 2023 and $10 million in Q2 2022.
	Net interest income		Declined 10% QoQ to $691 million, but was up 18% YoY.
	Net interest margin		1.19% versus 1.31% in Q1 2023 and 0.94% in Q2 2022.
	Deposits		Declined 10% YoY and 2% QoQ to $206 billion.
	Loans		Declined 5% YoY to $34 billion, but was flat QoQ.
	Credit Charge-offs		-$8 million(+62% Y/Y)
Bank of New York Melon	Revenue	$4.37 billion	$4.45 billion	“BNY Mellon delivered good financial performance amid a very dynamic operating environment, and we continued taking actions to position the firm for higher underlying growth and enhanced operational efficiency over time," CEO Robin Vince said.
	Adjusted EPS	$1.22	$1.30
	Provision for credit losses		$5 million(-89% Y/Y and -81% Q/Q)
	Net interest margin		1.20% versus 1.29% in Q1 2023 and 0.89% in Q2 2022.
	Average Deposits		$277.2 billion(-10.8% Y/Y and +1% Q/Q)
	Loans		$63.5 million(-8% Y/Y and flat Q/Q)
	Credit Charge-offs		-$4 million(+300% y/y)
Charles Schwab	Revenue	$4.63 billion	$4.66 billion
	EPS	$0.72	$0.75
	Net interest margin		1.87% versus 2.19 in Q1 2023 and 1.62% in Q2 2022.
	Deposits	$298.4 billion(-32% Y/Y)	$304.4 billion(-31% Y/Y and -7% Q/Q).	“While anticipated client cash realignment, along with net equity buying during June, pushed cash levels lower, we observed a continued and substantial deceleration in the daily pace of cash outflows versus prior months,” Chief Financial Officer Peter Crawford said in the statement. “The continuation of this trend through the end of the quarter further strengthens our conviction that this realignment activity will inflect before the end of 2023, unlocking growth in client cash held on the balance sheet.”
	Loans		$40.1 billion(+1% Y/Y and flat Q/Q).
	Borrowings from the Federal Home Loan Bank system		-10% Q/Q
PNC Financial	Revenue	$5.45 billion	$5.29 billion	"For the second quarter, PNC delivered solid financial results and maintained strong credit quality metrics, reflecting the power of our national franchise and the competitive positioning of our balance sheet in the current environment. The Federal Reserve's annual stress test recently demonstrated PNC’s through-thecycle financial strength and stability, and starting in the fourth quarter, our stress capital buffer requirement will improve to the regulatory minimum of 2.5%. In consideration of our strong capital levels and the board's confidence in our strategy and outlook, in July the board approved a 5 cent increase to our quarterly stock dividend," CEO Bill Demchak said.
	EPS	$3.29	$3.36
	Net interest income		$3.5 billion(+15% Y/Y and -2% Q/Q). Lowered outlook for net interest income for for the year to 5-6% from 6-8% growth.
	Net interest margin		2.79% versus 2.84% in Q1 2023 and 2.50% in Q2 2022.
	Average Deposits		$425.7 billion(+4.7% Y/Y and -2% Q/Q)
	Average Loans		$324.5 billion( +6% Y/Y and flat Q/Q)
	Provision for credit losses		$146 million(+305% Y/Y and -37% Q/Q)
	Net loan charge-offs		$ 194 million(+133% Y/Y and flat Q/Q).