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Bank Earnings:Historical Results/2022 Q4: Difference between revisions
Bank Earnings:Historical Results/2022 Q4 (view source)
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''Return to: [[Bank Earnings]] | [[Bank Earnings:Historical Results]]'' | ''Return to: [[Bank Earnings]] | [[Bank Earnings:Historical Results]]'' | ||
On January 13, 2023, major banks reported their Q4 2022 financial results. Here is a summary of their performance and remarks touching on the economy<ref>https://www.jpmorganchase.com/content/dam/jpmc/jpmorgan-chase-and-co/investor-relations/documents/quarterly-earnings/2022/4th-quarter/3958ba8d-cf62-4c8e-a06b-b28ed286df8e.pdf | On January 13 and 17, 2023, major banks reported their Q4 2022 financial results. Here is a summary of their performance and remarks touching on the economy<ref>https://www.jpmorganchase.com/content/dam/jpmc/jpmorgan-chase-and-co/investor-relations/documents/quarterly-earnings/2022/4th-quarter/3958ba8d-cf62-4c8e-a06b-b28ed286df8e.pdf | ||
https://d1io3yog0oux5.cloudfront.net/_be62467122df7498b6555528a17a1296/bankofamerica/db/806/9782/earnings_release/The+Press+Release.pdf | https://d1io3yog0oux5.cloudfront.net/_be62467122df7498b6555528a17a1296/bankofamerica/db/806/9782/earnings_release/The+Press+Release.pdf | ||
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https://seekingalpha.com/article/4569826-bank-of-america-corporation-bac-q4-2022-earnings-call-transcript | https://seekingalpha.com/article/4569826-bank-of-america-corporation-bac-q4-2022-earnings-call-transcript | ||
https://www.cnbc.com/2023/01/17/morgan-stanley-ms-earnings-q4-2022.html | |||
https://www.cnbc.com/2023/01/17/morgan-stanley-ceo-gorman-says-deal-activity-will-return-once-the-fed-pauses.html?__source=google%7Ceditorspicks%7C&par=google | |||
</ref>. | </ref>. | ||
{| class="wikitable" | {| class="wikitable" | ||
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!Estimate | !Estimate | ||
!Actual | !Actual | ||
!Remarks touching on the economy | ! Remarks touching on the economy | ||
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|JPMorgan Chase | |JPMorgan Chase | ||
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spending excess cash and businesses healthy. However, we still do not know the ultimate effect of the headwinds coming from geopolitical tensions including the war in Ukraine, the vulnerable state of energy and food supplies, persistent inflation that is eroding purchasing power and has pushed interest rates higher, and the unprecedented quantitative tightening.” | spending excess cash and businesses healthy. However, we still do not know the ultimate effect of the headwinds coming from geopolitical tensions including the war in Ukraine, the vulnerable state of energy and food supplies, persistent inflation that is eroding purchasing power and has pushed interest rates higher, and the unprecedented quantitative tightening.” | ||
|- | |- | ||
|Bank of America | | Bank of America | ||
|Revenue: $24.3 billion | |Revenue: $24.3 billion | ||
Earnings: 0.77 per share | Earnings: 0.77 per share | ||
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Scharf added: “As we look forward, we are carefully watching the impact of higher rates on our customers and expect to see deposit balances and credit quality continue to return toward pre-pandemic levels.” | Scharf added: “As we look forward, we are carefully watching the impact of higher rates on our customers and expect to see deposit balances and credit quality continue to return toward pre-pandemic levels.” | ||
|- | |||
|Morgan Stanley | |||
|Revenue: $12.64 billion | |||
Earnings: $1.28 per share | |||
|Revenue: $12.75 billion | |||
Earnings: $1.31 per share | |||
|CEO James Gorman said: "We're not of the view that we're heading into a dark period. Whatever negativity in the world out there. That's not our house view." | |||
He added: "I'm a little more confident about the medium-term outlook for the markets." | |||
|} | |} | ||
=== Assessment of the banks earning session === | ===Assessment of the banks earning session=== | ||
The earnings results from the four major banks above were mixed. Some reported better-than-expected earning results, while others, such as Wells Fargo, were slapped with disappointing results. But one thing was clear: The US economy is drifting towards a recession this year. This was showcased by the huge loss provisions put aside by the banks. However, these bank executives' comments indicate that the recession is likely to be mild. | The earnings results from the four major banks above were mixed. Some reported better-than-expected earning results, while others, such as Wells Fargo, were slapped with disappointing results. But one thing was clear: The US economy is drifting towards a recession this year. This was showcased by the huge loss provisions put aside by the banks. However, these bank executives' comments indicate that the recession is likely to be mild. | ||
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