Net interest income (NII)

Search documents
JP Morgan, Wells Fargo Post Strong Beats: Bank Earnings Wrap - Citigroup (NYSE:C), Goldman Sachs Group (NYSE:GS)
Benzinga· 2025-10-14 13:52
U.S. banks kicked off the third-quarter earnings season with a wave of upside surprises, as JPMorgan Chase & Co. (NYSE:JPM), Goldman Sachs Group Inc. (NYSE:GS), Wells Fargo & Co. (NYSE:WFC), and Citigroup Inc. (NYSE:C) all topped Wall Street expectations, signaling continued strength across lending, trading, and consumer banking.CompanyEPSEPS SurpriseRevenue (B)Revenue SurpriseJPMorgan Chase & Co. $5.07+4.84%$47.12+3.82%Citigroup Inc.$2.24+17.89%$22.09+4.76%Wells Fargo & Co. $1.66+7.44%$21.44+1.37%Goldman S ...
Higher NII & Non-Interest Income to Aid U.S. Bancorp's Q2 Earnings
ZACKS· 2025-07-15 13:46
Core Viewpoint - U.S. Bancorp (USB) is expected to report year-over-year increases in revenues and earnings for Q2 2025, benefiting from lower expenses and higher non-interest income [1] Group 1: Financial Performance Expectations - The company anticipates net interest income (NII) for Q2 2025 to be between $4.1 billion and $4.2 billion, with a consensus estimate of $4.01 billion, reflecting a marginal increase from the previous quarter [2][8] - The consensus estimate for total revenues in Q2 2025 is $7.06 billion, indicating a rise of 3.3% from the year-ago figure [13] - The Zacks Consensus Estimate for average earning assets is $611.2 million, suggesting a slight sequential increase [4] Group 2: Non-Interest Income and Trading Activity - Non-interest income is projected to rise by 3.3% due to gains in trading, mortgage, and card revenues, with total non-interest income estimated at $2.93 billion [9][8] - Trading volumes in equity derivatives and corporate bonds have increased, with the consensus estimate for commercial product revenues at $391 million, reflecting a 2.4% increase from the prior quarter [5] Group 3: Loan Activity and Market Conditions - Lending activity remained strong in Q2 2025, supported by a resilient labor market and easing inflation, with notable demand for commercial and industrial loans [3] - Mortgage banking revenues are expected to reach $179.6 million, indicating a 3.8% increase from the previous quarter, despite mortgage rates fluctuating in the mid-to-upper 6% range [6] Group 4: Expense Management and Asset Quality - The company aims to keep non-interest expenses at or below $4.2 billion in Q2 2025, despite higher costs related to compensation and employee benefits [10][9] - The Zacks Consensus Estimate for non-performing loans is $1.72 billion, indicating a rise of 1.8% from the prior quarter [10] Group 5: Earnings Expectations - U.S. Bancorp has a positive Earnings ESP of +0.21%, indicating a high likelihood of beating earnings estimates [11] - The consensus estimate for Q2 earnings is $1.07, reflecting a 9.2% increase from the year-ago reported number [12]
These 3 Big Banks Are Set to Gain as Consumers Stash More Cash
MarketBeat· 2025-03-07 13:00
Core Viewpoint - Recent volatility in the S&P 500 has led some investors to retreat from consumer discretionary stocks, but positive developments in the macroeconomic landscape may present investment opportunities for those willing to look beyond the surface [1] Consumer Spending and Savings - Consumer spending in the U.S. has declined for the first time since 2021, indicating growing concerns about personal financial stability [2] - The decline in spending has resulted in an increase in the personal savings rate, suggesting that consumers are holding more cash, which may seek investment opportunities [2] Banking Sector Insights - Increased savings may lead consumers to either pay down debts or leave funds idle in banks, potentially benefiting financial institutions [5] - Idle deposits can be used by banks to collateralize new products and generate net interest income (NII), which is crucial for bank earnings [6] Earnings Per Share (EPS) Forecasts - Bank of America is projected to see EPS rise to $0.96 for Q4 2025, up from $0.82, indicating potential stock price increases [8] - Citigroup's EPS is expected to grow to $1.85 for Q4 2025, reflecting a 38% increase from the current $1.34 [10] - Wells Fargo's EPS forecast for Q4 2025 is $1.60, a 12% increase from the current $1.43 [11] Market Sentiment and Price Targets - Current trading prices for Bank of America, Citigroup, and Wells Fargo are near 90% of their 52-week highs, suggesting optimism in the market [14] - Analysts project significant upside potential for these banks, with price targets indicating potential increases of 32% for Bank of America, 50.8% for Citigroup, and 26% for Wells Fargo [16][17]