FILE – In this May 5, 2015, file photo, a downtown building is reflected in the windows of a Wells Fargo Bank in Los Angeles. Wells Fargo reports financial results on Friday, July 15, 2016. (AP Photo/Richard Vogel, File) Wells Fargo profits slip as interest rates decline
Consumer banking giant Wells Fargo said its second-quarter earnings fell 3 percent from a year ago as the bank continues to feel pressure from low interest rates.
Wells Fargo on Friday reported second-quarter earnings of $5.56 billion, down from $5.72 billion in the same period a year earlier. On a per share basis, the San Francisco-based bank earned $1.01 per share, down from $1.03 per share a year earlier.
The results mostly met analysts’ expectations. Analysts surveyed by FactSet expected $1.01 per share, while 12 analysts surveyed by Zacks Investment Research were looking for $1.02 per share.
“Wells Fargo’s second quarter results demonstrated our ability to generate consistent performance during periods of economic, capital markets and interest rate uncertainty,” said Wells Fargo CEO and Chairman John Stumpf in prepared remarks.
Wells Fargo continued to grow aggressively and expand its lending in all of its businesses, from industrial and commercial loans to credit cards and auto lending. Total loans were up 8 percent to $957.2 billion.
The nation’s historically low interest rates continue to pressure the bank. Wells is particularly affected by low rates because it makes much of its profit from making loans to individuals and businesses and does not have a significant trading or investment banking operation, unlike other major U.S. banks such as JPMorgan Chase.
The First Tennessee Bank building is located between Market and Broad Streets in downtown Chattanooga.First Tennessee profits up on higher loan demand
The parent company of Chattanooga’s biggest bank boosted its second quarter profits by nearly 13 percent to $56.8 million, or 24 cents per share.
First Horizon Corp., the parent company of First Tennessee Bank, exceeded earnings expectations for second-quarter profits by 2 cents per share. Shares of First Horizon rose Friday by 8 cents per share, or 0.55 percent, to $14.57 per share.
“Our performance remained strong in the second quarter, with good numbers across the board,” First Horizon CEO Bryan Jordan said. “The customer-focused work of our people continues to drive strong loan growth, deposit growth and revenue growth.”
Net interest income increased 6 percent to $176 million. First Horizon posted double-digit increases in loans, which totaled $18.6 billion.
First Tennessee is Chattanooga’s biggest bank with more than $2 billion in deposits in the Chattanooga market. Jeff Jackson, Chattanooga market president for First Tennessee, said the bank is enjoying double-digit loan and deposit growth this year, especially in its commercial lines of business.
“The Chattanooga economy is doing well with many businesses relocating to our city,” Jackson said. “We expect the (growing loan) demand to continue through the rest of the year.”
FILE – In this Jan. 15, 2015, file photo, a Citibank sign hangs above a branch office in New York. On Friday, July 15, 2016, Citigroup reports financial results. (AP Photo/Mark Lennihan, File) Citigroup’s profits fall 17 percent in quarter
Citigroup’s earnings fell 17 percent in the second quarter, hurt by weak results in consumer banking as interest rates remain extremely low, making lending less profitable. The results still beat analysts’ forecasts, however.
The New York-based financial conglomerate said it earned net income of $4 billion on Friday, or $1.25 per share, compared with $4.85 billion, or $1.51 per share, in the same period the year earlier. The results beat the $1.10 per share analysts had expected, according to FactSet.
Revenue fell 10 percent to $17.54 billion, beating the $17.52 billion analysts expected.
“These results demonstrate our ability to generate solid earnings in a challenging and volatile environment, again highlighting the resilience of our institution,” said Citigroup CEO Michael Corbat in prepared remarks.
FILE – In this Monday, Oct. 21, 2013, file photo, the JPMorgan Chase logo is displayed at their headquarters in New York. JPMorgan Chase reports financial results Thursday, July 14, 2016. (AP Photo/Seth Wenig, File) JPMorgan posts profit that beats estimates
JPMorgan Chase reported better-than-expected financial results Thursday and gave credit to improvement in the U.S. economy.
The bank, the nation’s largest, said it was seeing broad demand for loans from consumers and businesses in the United States. JPMorgan’s loan portfolio in the second quarter grew 16 percent from a year earlier and 3 percent from the previous quarter.
“That speaks well for the U.S. economy and the consumer in particular,” said JPMorgan’s chief financial officer, Marianne Lake. “We’re expecting continuing moderate growth and demand in the U.S.”
For the second quarter, earnings at JPMorgan slipped to $6.20 billion, or $1.55 a share, from $6.29 billion, or $1.54 a share. Wall Street had been expecting earnings of $1.43 a share, according to a survey of analysts by Thomson Reuters.
Improving results from its Main Street and Wall Street divisions helped push up the firm’s overall revenue 3 percent, to $25.2 billion, from a year earlier.