Markets

USA investment banks post first quarter earnings

USA investment banks post first quarter earnings

Wells Fargo's earnings report came just days after the bank's independent directors chose to claw back an additional $75 million in compensation from executives, following a six-month investigation into the scrutinized institution's retail banking sales practices. The bank's net interest margin, a key measure of lending profitability, remained unchanged from the fourth quarter at 2.87%. On average, equities analysts predict that Wells Fargo & Co will post $4.21 earnings per share for the current year.

The results underscored concerns expressed recently by analysts and investors that higher interest rates, combined with uncertainty about geopolitical events, could hurt economic growth - and therefore crimp lenders' bottom lines. They were $7.7 billion lower than last quarter and down $5.7 billion year over year.

On Wednesday analysts at Sandler ONeill maintained Wells Fargo & Company's (NYSE:WFC) shares as "Hold" in a research note issued to investors.

Shares of Wells Fargo & Co (NYSE:WFC) traded down 2.3501% during mid-day trading on Thursday, reaching $51.8716. That represented the bank's seventh straight month of declines.Credit card applications also fell 42% during the quarter. That means the bank could spend as much as $240 million this year due to its transgressions, bringing its total bill for the fake accounts as high as $425 million.

The consumer loan is an imminent threat for Wells Fargo, it declined by a whopping $5.7 billion in the same quarter a year ago, while the commercial and industrial loans lose an estimated amount of $1.6 billion compared to the previous quarter.

Profit from community banking dropped 8.7 percent to $3 billion on $521 million less revenue and $385 million more expenses.

The comments came after JPMorgan reported a 17 percent rise in profit for its first quarter, driven primarily by more trading.

That's on top of the $185 million fine Wells Fargo paid a year ago when news of the scandal first broke, and much more than the $40 million to $50 million the bank had expected to spend on those costs for the quarter when it last reported earnings in January.

Wells Fargo, led by Chief Executive Timothy Sloan, had been one of the most consistent big banks at growing earnings and revenue in recent years. Under Federal Reserve rules, an ownership interest above 10 percent "would materially restrict our commercial activity with Wells Fargo", Berkshire said in a press release.

What these number disturbingly reveal, is that the average USA consumer cannot afford to take out mortgages at a time when rates rise by as little as 1% or so, which is where they peaked in the first quarter.

In this April 11, 2017, photo, a customer uses a drive-thru ATM at a Wells Fargo bank in northeast Jackson, Miss.

"Wells Fargo continued to make meaningful progress in the first quarter in rebuilding trust with customers and other important stakeholders, while producing solid financial results", said Well Fargo chief executive officer Tim Sloan in the earnings report.


  • Janet Jackson Singer spotted 1st time since marriage breakup

    Janet Jackson Singer spotted 1st time since marriage breakup

    Wissam Al Mana or being the obedient Muslim wife". "They come from very different worlds", another insider told PEOPLE . The assumption is Jackson and Al Mana signed a prenup, given their ages and the amount of money at stake.
    Arrow spoilers: Multiple villains returning for season 5 finale

    Arrow spoilers: Multiple villains returning for season 5 finale

    He was introduced during the season 1 flashbacks, befriending Oliver while the billionaire was stranded on the island Lian Yu . It'll be interesting for fans to see Oliver team up with Deathstroke but painful for Oliver.

    Churches in southern Egypt will not celebrate Easter

    With nowhere else to turn, Egyptians - and Christians in particular - will continue to turn to el-Sisi for protection and support. The shoot-out takes place one day after twin bombings at Coptic Christian churches in two cities left at least 45 people killed.
  • Mahmoud Ahmadinejad makes surprise bid to run for Iran's presidency

    On Sunday, Ebrahim Raisi, a conservative cleric close to Khamenei, announced he would put his name on the list. Iran agreed to limit its enrichment of uranium in exchange for the lifting of some economic sanctions.

    Seoul responds to N.Korean threats with missile test

    In Tuesday's launch, the missile flew about 60 km before crashing into the East Sea. Both agreed to push forward the deployment of THAAD by US forces in Korea", it said.
    Watch The April's 'Pink Moon' That Will Gleam Gracefully This Week

    Watch The April's 'Pink Moon' That Will Gleam Gracefully This Week

    Time and Date Moonrise Calculator is a handy resource to figure out when exactly the Moon will be visible at your location. The appearance of the pink moon marks the beginnings of festivals and celebrations in many cultures around the world.
  • Star Wars Battlefront II trailer leaks

    A galaxy far, far away and Omaze are teaming up to help children around the world with the new "Force for Change" campaign . This Thursday will be huge for Star Wars fans as 2017's four-day Star Wars Celebration kicks off in Orlando, Florida.
    Raider Nation Officially Calls Las Vegas Home

    Raider Nation Officially Calls Las Vegas Home

    Moving the Raiders? You can move a lot of teams but not many fan bases like the Raiders fan base. I feel like all fans should feel that way.

    Total annihilation as Crystal Palace routs Arsenal 3-0

    He said: "That's two great victories in such a short space of time which you don't expect". It's very worrying and disappointing the way we lost the game.
  • Tillerson arrives in Moscow for potentially heated Russian Federation  talks

    Tillerson arrives in Moscow for potentially heated Russian Federation talks

    Tillerson accompanied Alfano to Santa'Anna di Stazzema, where 560 civilians, including some 130 children, were killed in 1944. And so Russian Federation can be a part of that future and play an important role.
    Child Abuse Awareness Month Ceremony Set for April 21

    Child Abuse Awareness Month Ceremony Set for April 21

    Established in 1987 when the Kentucky Chapter of Prevent Child Abuse America merged with Parent's Anonymous of Kentucky. Mid-Valley Parenting offers classes based on your child's age and in communities around the county.
    Malala Yousafzai Just Became the Youngest UN Messenger of Peace

    Malala Yousafzai Just Became the Youngest UN Messenger of Peace

    UN Messengers of Peace are chosen from the fields of art, literature, science, entertainment, sports or other fields of public life.