* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Thursday, July 17, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    B&B Theatres will open massive entertainment complex in Texas – The Business Journals

    B&B Theatres will open massive entertainment complex in Texas – The Business Journals

    Rough times for broadcast networks illustrate changing media landscape – New Haven Register

    Broadcast Networks Confront Turbulent Times in a Rapidly Changing Media Landscape

    Black River Entertainment Adds Traci Hite As Director Of Promotion, Southeast – MusicRow.com

    Black River Entertainment Welcomes Traci Hite as New Director of Southeast Promotion

    Entertainment Business Master’s Grad Launched Nonprofit to Nurture Emerging Artists – Full Sail University

    Entertainment Business Master’s Grad Launched Nonprofit to Nurture Emerging Artists – Full Sail University

    Review: At the Huntington, the New Hollywood String Quartet recalls legendary studio musicians – Los Angeles Times

    Review: At the Huntington, the New Hollywood String Quartet recalls legendary studio musicians – Los Angeles Times

    Kehoe repeals paid sick leave, allows several counties in the Ozarks to have entertainment districts in bill signings – KY3

    Kehoe repeals paid sick leave, allows several counties in the Ozarks to have entertainment districts in bill signings – KY3

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    SailGP Technologies officially launches new center of excellence in technology & innovation – Sail-World.com

    SailGP Technologies officially launches new center of excellence in technology & innovation – Sail-World.com

    Victorville’s new gunfire-detecting technology already making strides, city says – NBC Los Angeles

    Victorville’s New Gunfire-Detecting Technology Is Already Making a Difference, City Officials Say

    Guest columnist: China cutting corners on technology – The State Journal

    China’s Rapid Tech Advances Spark Worries About Cutting Corners

    Sentrycs’ Cyber Over RF technology integrated into Rafael’s combat-proven Drone Dome system – Defence Industry Europe

    Sentrycs’ Cyber Over RF Technology Boosts Rafael’s Battle-Tested Drone Dome System

    Nordic Air Defence raises $3 million to expand operations and advance drone defence technology – Defence Industry Europe

    Nordic Air Defence Lands $3 Million to Transform Drone Defense and Supercharge Operations

    China’s energy dominance in three charts – MIT Technology Review

    How China Is Powering Its Energy Dominance: A Visual Breakdown

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    B&B Theatres will open massive entertainment complex in Texas – The Business Journals

    B&B Theatres will open massive entertainment complex in Texas – The Business Journals

    Rough times for broadcast networks illustrate changing media landscape – New Haven Register

    Broadcast Networks Confront Turbulent Times in a Rapidly Changing Media Landscape

    Black River Entertainment Adds Traci Hite As Director Of Promotion, Southeast – MusicRow.com

    Black River Entertainment Welcomes Traci Hite as New Director of Southeast Promotion

    Entertainment Business Master’s Grad Launched Nonprofit to Nurture Emerging Artists – Full Sail University

    Entertainment Business Master’s Grad Launched Nonprofit to Nurture Emerging Artists – Full Sail University

    Review: At the Huntington, the New Hollywood String Quartet recalls legendary studio musicians – Los Angeles Times

    Review: At the Huntington, the New Hollywood String Quartet recalls legendary studio musicians – Los Angeles Times

    Kehoe repeals paid sick leave, allows several counties in the Ozarks to have entertainment districts in bill signings – KY3

    Kehoe repeals paid sick leave, allows several counties in the Ozarks to have entertainment districts in bill signings – KY3

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    SailGP Technologies officially launches new center of excellence in technology & innovation – Sail-World.com

    SailGP Technologies officially launches new center of excellence in technology & innovation – Sail-World.com

    Victorville’s new gunfire-detecting technology already making strides, city says – NBC Los Angeles

    Victorville’s New Gunfire-Detecting Technology Is Already Making a Difference, City Officials Say

    Guest columnist: China cutting corners on technology – The State Journal

    China’s Rapid Tech Advances Spark Worries About Cutting Corners

    Sentrycs’ Cyber Over RF technology integrated into Rafael’s combat-proven Drone Dome system – Defence Industry Europe

    Sentrycs’ Cyber Over RF Technology Boosts Rafael’s Battle-Tested Drone Dome System

    Nordic Air Defence raises $3 million to expand operations and advance drone defence technology – Defence Industry Europe

    Nordic Air Defence Lands $3 Million to Transform Drone Defense and Supercharge Operations

    China’s energy dominance in three charts – MIT Technology Review

    How China Is Powering Its Energy Dominance: A Visual Breakdown

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Business

JP Morgan fails to shine, as Citi bounces back

April 13, 2024
in Business
JP Morgan fails to shine, as Citi bounces back
Share on FacebookShare on Twitter

After the US CPI print on Wednesday, the market’s attention is now on the first quarter earnings season. The focus is on JP Morgan, as it is the biggest bank in the US. After reporting Q1 results earlier, its stock price is lower by 3% in pre-market trading. The reason for the decline is a small miss in net interest income along with a rise in its expenditure guidance, although Q1 adjusted revenue was $42.55bn, easily beating estimates of $41.6bn.

No bad loan concerns at JP Morgan

JP Morgan is a victim of its own success, and the bar was high for these results. The market is nervous, since the next leg of the global stock market rally is hinging on whether corporations can deliver on profit growth. Today’s results from JPM suggest that nothing less than perfect will do, even though there was some promising news around charge offs and credit loss provisions. JPM, a notoriously conservative bank, set aside fewer reserves for loan losses than the market expected. The provision for credit loss was $1.88bn, vs. estimates of $2.78bn.  Charge offs were also lower than expected, at $1.96bn, vs the $2.2bn expected. This is good news that the market seems to be ignoring. JPM is not holding less money back for bad loans because they are being reckless, it is a sign of US economic strength. They are not seeing a surge in bad loans and so they do not need to keep so much money in reserve.

Return on equity hit 17% for the quarter, and their CET 1 Capital ratio was 15%. Revenues from both equities and fixed income trading beat expectations for the quarter and trading revenue was $7.9bn, beating the $7.71bn expected. Jamie Dimon boosted the dividend by 10% last month and has said that the Q1 performance gives the bank more scope to return more capital to investors. What is not to like!  

The NII bar was too high for JPM

The glitch in these earnings was the net interest income estimate for 2024. The bank still expects to make $90bn in net interest income, this was less than the $90.72bn the market had expected. Why is the market treating these results as a mini disaster, when the difference between net interest income forecasts is within the margin of error? This is where psychology comes in. The market is getting used to seeing blowout earnings and nice upside surprises, after the likes of Nvidia and JPM have posted amazing results in recent quarters. Anything less than a blow out quarter is a disappointment, even though JP Morgan has once again showed its prowess in generating revenue and still has a ‘fortress balance sheet’.

Jamie Dimon explained the lower net interest income (NII) forecast vs. the street’s as a sign of normalization in NII. However, if the Fed keeps interest rates higher for longer, and if this does not break the US economy, then JPM’s NII could easily be revised higher for 2024. However, the market is not focused on this right now.

Citi’s turnaround in Q1

In contrast to JPM’s share price, which is falling ahead of the US stock market open, Citi reported profit that beat estimates and its share price is expected to open up by more than 1.2% later on Friday. Net income was $3.4bn for Q1, EPS was $1.58 per share, easily beating the $1.23 per share expected by analysts.

Citi also benefitted from a surge in corporate bond sales in Q1, and consumers spending more on credit cards. The prospect of the Fed remaining on hold for longer before cutting rates could be positive for Citi if these trends continue. Overall revenue was $21.1bn in Q1, vs. the $20.4bn expected. This is 3% higher than revenues in Q1 2023. In contrast to JPM, net interest income beat estimates at $13.5bn. Wells Fargo also saw net interest income fall relative to a year ago, which leaves Citi as an outlier for strong NII gains in Q1.

Citi takes advantage of higher interest rates

The market is clearly focused on NII rather than other revenue streams from US banks. Citi’s share price is rising even though trading revenue fell by 7%. This was better than the 8-12% decline in trading revenue the bank had forecast earlier this year. Its wealth unit also registered a 4% decline vs. a year ago.

Why the sell off in JPM may not last

This is a turnaround for Citi, which registered one of its worst quarters for earnings in Q4 2023, which sent the stock price tumbling. The market is clearly favoring Citi’s turnaround efforts, its lower valuation and its strong net interest income that beat forecasts. However, it is still hard to see a sustained selloff in JPM shares, as its earnings report was generally strong and its forward price to earnings is only 11.57 for 2024, vs. a P/E ratio of 24 for the S&P 500 as a whole.

What can US banks tell us about the future of earnings season?

The start of earnings season could be a sign of what is to come. The market has been focused on the biggest companies that posted the biggest earnings in recent quarters, if they deliver anything that is less than perfect, their stock is sold off. For Citi, the bar was lower than it was for JPM, so when they did better than estimates the market pounced. Thus, the Q1 earnings season could see the focus shift to smaller underperformers this earnings season, who have the opportunity to play catch up if they are able to beat earnings estimates.

CFD’s, Options and Forex are leveraged products which can result in losses that exceed your initial deposit. These products may not be suitable for all investors and you should seek independent advice if necessary.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXStreet – https://www.fxstreet.com/news/jp-morgan-fails-to-shine-as-citi-bounces-back-202404121343

Tags: businessFailsMorgan
Previous Post

US Dollar sprints higher on trifecta of drivers

Next Post

Atlanta Fed’s Bostic: ‘Housing is unaffordable for far too many’

SailGP Technologies officially launches new center of excellence in technology & innovation – Sail-World.com

SailGP Technologies officially launches new center of excellence in technology & innovation – Sail-World.com

July 17, 2025
CNBC Sport: MLB Commissioner says Sunday media rights could go to NBC, Apple — or back to ESPN – CNBC

MLB Commissioner Hints Sunday Media Rights Could Land with NBC, Apple, or ESPN

July 17, 2025
Gary Ades speaks on animal conservation and ecology in Hong Kong – South China Morning Post

Gary Ades Shares Eye-Opening Insights on Animal Conservation and Ecology in Hong Kong

July 17, 2025
Outdoors calendar: Great Lakes research vessel hosts science events – Duluth News Tribune

Explore Science on the Great Lakes: Exciting Research Vessel Events You Can’t Miss

July 17, 2025
Tell City High School Senior Jazlyn Mahaney Receives Prestigious Math or Science Educator Scholarship – Dubois County Herald

Tell City High School Senior Jazlyn Mahaney Honored with Prestigious Math and Science Educator Scholarship

July 17, 2025
2Baba, Annie’s marriage collapsed due to lifestyle clash – Baba Fryo – Punch Newspapers

The Untold Story Behind 2Baba and Annie’s Divorce: Lifestyle Differences Exposed

July 17, 2025
Two black holes collide, lab-grown organs, world’s first climate visa – podcast – The Guardian

Two black holes collide, lab-grown organs, world’s first climate visa – podcast – The Guardian

July 17, 2025
Contributor: ICE raids are cruel, but so is an economy built on undocumented labor – Los Angeles Times

Contributor: ICE raids are cruel, but so is an economy built on undocumented labor – Los Angeles Times

July 17, 2025
B&B Theatres will open massive entertainment complex in Texas – The Business Journals

B&B Theatres will open massive entertainment complex in Texas – The Business Journals

July 17, 2025
Moorhead police arrest Moorhead man after threat of violence at Essentia Health in Fargo – InForum

Moorhead police arrest Moorhead man after threat of violence at Essentia Health in Fargo – InForum

July 17, 2025

Categories

Archives

July 2025
MTWTFSS
 123456
78910111213
14151617181920
21222324252627
28293031 
« Jun    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (725)
  • Economy (748)
  • Entertainment (21,634)
  • General (15,948)
  • Health (9,786)
  • Lifestyle (756)
  • News (22,149)
  • People (750)
  • Politics (759)
  • Science (15,966)
  • Sports (21,246)
  • Technology (15,731)
  • World (732)

Recent News

SailGP Technologies officially launches new center of excellence in technology & innovation – Sail-World.com

SailGP Technologies officially launches new center of excellence in technology & innovation – Sail-World.com

July 17, 2025
CNBC Sport: MLB Commissioner says Sunday media rights could go to NBC, Apple — or back to ESPN – CNBC

MLB Commissioner Hints Sunday Media Rights Could Land with NBC, Apple, or ESPN

July 17, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version