Core Viewpoint - First Horizon reported a strong finish to 2025, highlighting improved profitability metrics, solid loan and deposit trends, and substantial capital returns, while providing an optimistic outlook for 2026 with expected revenue growth and expense discipline [4]. Financial Performance - The company ended Q4 with earnings per share of $0.52, a net interest margin (NIM) of 3.51%, and 2% loan growth, benefiting from deposit pricing and loan growth in certain categories [3][6]. - Net interest income increased by approximately $2 million compared to the prior quarter, although NIM compressed by four basis points [2]. - The average interest-bearing deposit cost declined by 25 basis points to 2.53% [1]. Loan and Deposit Trends - Period-end loans increased by $1.1 billion, or 2%, from the prior quarter, with significant growth in loans to mortgage companies, which rose by $776 million [7]. - The company also reported broad-based strength in commercial and industrial lending, with a $727 million increase in the C&I portfolio [8]. Fee Income and Expenses - Fee income rose by $3 million from the prior quarter, primarily driven by service charges and elevated activity in the equipment finance lease business [9]. - Adjusted expenses increased by $4 million, with personnel expenses rising by $12 million due to annual bonus adjustments [10][11]. Credit Trends and Capital Return - Credit results remained stable, with net charge-offs increasing by $4 million to $30 million, and the net charge-off ratio at 19 basis points [14]. - The company ended the quarter with a Common Equity Tier 1 (CET1) ratio of 10.64%, having repurchased nearly $335 million of common shares in Q4 and a total of $894 million for 2025 [16][17]. 2026 Outlook - For 2026, management expects PPNR-driven revenue growth of 3%–7%, with NIM around the mid-340s and net charge-offs projected at 15–25 basis points [5][20]. - The company aims to deepen client relationships and invest in technology while maintaining efficiency and discipline [13][19].

Core Insights - The company reported a strong fourth quarter with earnings per share of $0.52 and a net interest margin (NIM) of 3.512%, despite a four basis point compression in margin [2] - The company is optimistic about improving profitability and growth in 2026, with a focus on returning capital to shareholders while investing in growth opportunities [3][4] Financial Performance - Net interest income (NII) grew by approximately $2 million, driven by deposit pricing and strong loan growth, particularly in loans to mortgage companies, which increased by $767 million [2][5] - Average interest-bearing deposits decreased to 2.53% from 2.78%, with period-end balances increasing by $2 billion compared to the prior quarter [1][5] - The company returned nearly $900 million in stock repurchases and over $300 million in dividends in 2025 [4] Loan and Deposit Trends - Period-end loans increased by $1.1 billion or 2% from the prior quarter, with significant growth in the mortgage sector due to a pickup in refinancing activity [5][6] - The commercial real estate (CRE) portfolio saw a slight reduction in balances but an increase in commitments, indicating positive momentum entering 2026 [6] Expense Management - Adjusted expenses, excluding deferred compensation, increased by $4 million, with personnel expenses rising due to incentives and commissions [7] - The company expects expenses to remain flat in 2026, with a focus on managing costs while investing in technology and personnel [10][61] Credit Quality - Net charge-offs increased to $30 million, with a net charge-off ratio of 19 basis points, aligning with expectations [8] - The allowance for credit losses (ACL) to loan ratio declined to 1.31%, reflecting improvements across the commercial portfolio [8] Capital Management - The company ended the quarter with a Common Equity Tier 1 (CET1) ratio of 10.64%, with plans to maintain a target range of 10.5% to 10.75% [8][12] - A new repurchase program of $1.2 billion was announced, with nearly $1 billion of authorization remaining [10][9] Outlook and Growth Strategy - The company anticipates year-over-year PPNR growth with total revenue expectations ranging from 3% to 7% in 2026 [10] - Continued improvements in market conditions for fixed income and mortgage lines of business are expected to drive higher revenues [11] - The company is focused on deepening client relationships and enhancing product offerings to achieve sustainable growth [16]

Expense management remained a central theme. Scharf noted the company generated positive operating leverage and said Wells Fargo has reduced headcount for 22 consecutive quarters, with headcount down more than 25% since the second quarter of 2020. The company returned $23 billion of capital to shareholders in 2025, including a 13% increase in the common dividend per share and $18 billion of common stock repurchases. Scharf said the bank expects share repurchases to be lower in 2026 given opportunities for o ...

Bloomberg Wells Fargo & Co. missed analysts’ profit estimates as severance costs drove up expenses. Shares of the company fell by the most in six months. The bank spent $612 million on severance as part of a plan designed to cut costs. Expenses were $13.7 billion, compared with the $13.6 billion predicted by analysts in a Bloomberg survey, according to a statement Wednesday. Most Read from Bloomberg “We have built a strong foundation and have made great progress in improving growth and returns, though ...

Core Insights - Bank of America exceeded Wall Street's expectations in Q4 2025, driven by increased net interest income and asset management fees [1][2][3] - The bank reported earnings per share of $0.98, surpassing the consensus estimate of $0.96, and net income of $7.65 billion, which is a 12% increase from the same period in 2024 [1][2] Financial Performance - Revenue for Q4 was $28.37 billion, a 7% year-over-year increase, exceeding analysts' forecasts of $27.74 billion [2] - Net interest income rose by 10% year-over-year to $15.75 billion, while asset management fees increased by 13% to $4.19 billion [3] Management Commentary - CEO Brian Moynihan expressed optimism about the macroeconomic environment for 2026, citing resilience among consumers and businesses, as well as a clearer regulatory environment [4][5] - The bank's recent investor day set ambitious medium-term financial targets, including a return on tangible common equity (ROTCE) goal of 16% to 18% and an expected EPS growth of 12% or more over the next three to five years [6]

Core Viewpoint - JPMorgan is expected to report strong fourth-quarter and full-year 2025 earnings, with significant attention on its performance as a bellwether for the financial sector [1] Group 1: Earnings Performance - JPMorgan's nine-month performance was driven by strong investment banking and trading, with a projected revenue of $45.71 billion for Q4, indicating a 6.9% year-over-year rise [2] - The consensus estimate for fourth-quarter earnings has increased to $5.01, reflecting a 4.2% rise from the previous year [3] - The company has a history of exceeding earnings estimates, with an average surprise of 11.01% over the last four quarters [5] Group 2: Revenue Drivers - Net Interest Income (NII) is expected to reach nearly $25 billion in Q4, with a full-year estimate of approximately $95.8 billion, suggesting a 6.8% year-over-year increase [8] - Investment Banking (IB) revenues are projected to rise 4.2% year-over-year, with a consensus estimate of $2.71 billion [11] - Markets revenues are anticipated to grow at a low-teens percentage rate year-over-year, with equity markets revenues expected to jump 38.2% [13] Group 3: Expenses and Asset Quality - Operating expenses are projected to increase by 7.2% year-over-year to $24.4 billion due to expansion efforts and technology investments [16] - The provision for credit losses is estimated at $1.66 billion, down 36.7% year-over-year, excluding provisions related to the Apple Card acquisition [18] - Non-performing loans (NPLs) are expected to rise by 19.4% year-over-year, indicating potential asset quality pressures [18] Group 4: Market Position and Valuation - JPMorgan's shares have underperformed compared to the S&P 500 and peers like Citigroup and Bank of America, with a forward P/E of 15.67X, above the industry average [21][24] - The company benefits from its scale and diversified operations, with ongoing initiatives expected to drive growth despite elevated expenses [28] - Investors are advised to monitor management's guidance on NII and IB outlook during the upcoming earnings call [29]

Danske Bank Q4 2025 Pre-Close Call Summary Company Overview - **Company**: Danske Bank (OTCPK:DNKE.Y) - **Date of Call**: January 08, 2026 Key Points Macroeconomic Environment - Euro area growth prospects for 2025 are better than expected despite tariff announcements and geopolitical uncertainty [2] - Nordic economies are expected to improve in 2026, driven by rising real incomes and investments [2] - Danish economy shows solid Q4 performance with low unemployment and growing real wages, but low consumer confidence may dampen spending [3] Financial Performance - **Net Interest Income (NII)**: A non-recurring benefit of approximately DKK 0.2 billion is expected to be booked in Q4 due to tax assessments [3] - **Central Bank Policy Rates**: ECB expected to maintain a policy rate of 2% in 2026; Riksbanken and Norway's bank also expected to keep rates unchanged [4] - **Lending Volumes**: Overall credit demand remained stable in Q4, with a day effect estimated at DKK 65-DKK 70 million [4] Currency and Funding - Currency fluctuations noted: Swedish krona appreciated by 2% against Danish krona; Norwegian krona depreciated by 1% [5] - Wholesale funding issuance reached DKK 90 billion, exceeding the full-year plan of DKK 60 billion-DKK 80 billion [5] Fee Income and Trading - Fee income diversified, benefiting from healthy corporate activity; performance fees in Q4 2024 were DKK 0.7 billion [7] - Trading income expected to be lower due to typical year-end customer activity [8] Insurance Activities - A net negative P&L effect of around DKK 200 million expected in Q4 due to model calibration for health and accident claims [9] - Full-year income expectations for normalized net insurance income revised below guidance of DKK 1.4 billion-DKK 1.6 billion [9] Costs and Impairments - Total costs for the year expected to be just shy of DKK 26 billion; loan impairment guidance remains at no more than DKK 600 million [10] Capital and Risk Management - Temporary CT1 reduction of around 40 basis points expected to continue reflecting in Q4 numbers [11] - Market risk remains subject to volatility; growing lending volumes may increase credit risk [12] Regulatory and Political Environment - Discussions around potential fee gaps and overcharging by banks noted, especially in light of upcoming elections in 2026 [17][18] - No immediate decisions on government proposals regarding CRE risk rates in Denmark [15] Upcoming Events - Silent period begins on January 15; annual report to be published on February 5, 2026 [13] Additional Insights - Pre-funding for 2026 wholesale funding is a standard procedure to capitalize on market opportunities [19]

Core Viewpoint - The pre-close call for DNB's fourth quarter highlights the stability in lending volumes and the minor expected impact on net interest income (NII) due to foreign exchange (FX) developments and interest rate adjustments. Group 1: Net Interest Income (NII) and Capital - The number of interest days in the fourth quarter remains the same as in the third quarter, indicating no impact on Q4 NII from day counts [2] - Minor FX developments are anticipated to have a limited effect on NII, with the FX split in the loan portfolio for Q3 being 8% in U.S. dollars, 7% in euros, and 6% in Swedish kroner [4] Group 2: Lending Volume and Credit Demand - Q3 lending volume growth was reported at 0.3% when adjusted for FX, with stable credit demand observed since the end of Q3 for both households and corporates [3] - For the last 12 months, household credit growth was 4.5%, while corporate credit growth was 1.8% as reported by Statistics Norway [3]

Group 1 - Goldman Sachs analyst Ryan Nash raised the price target on Enact Holdings (ACT) to $45 from $41 while maintaining a Neutral rating on the shares [1] - Regional banks underperformed the market by 200-300 basis points in 2025 due to macro concerns and credit worries, although stocks rallied 13% late in the year [1] - For 2026, factors such as solid loan growth, net interest income momentum, positive operating leverage, and improving returns are expected to support continued multi-year fundamental improvement, with credit risk identified as the main wildcard [1]

Core Viewpoint - Goldman Sachs has raised the price target for First Horizon (FHN) to $27 from $24 while maintaining a Neutral rating on the shares [1] Group 1: Market Performance - Regional banks underperformed the market by 200-300 basis points in 2025 due to macro concerns and credit worries [1] - Despite the underperformance, stocks rallied 13% late in the year [1] Group 2: Future Outlook - For 2026, solid loan growth, net interest income momentum, positive operating leverage, and improving returns are expected to support continued multi-year fundamental improvement [1] - Credit risk is identified as the main wildcard affecting future performance [1]