US Banking Sector: Consecutive Losses as Big Players Report Q4 Earnings

TLDR:

– The US banking sector has seen four consecutive days of losses following the release of Q4 earnings reports from JPMorgan, Bank of America, Citigroup, Wells Fargo, and Bank of New York Mellon.
– The Invesco KBW Bank ETF, which monitors the 24 largest US banking stocks, declined by 1.4% at midday trading in New York, marking its worst streak since November 2023.

The US banking sector has experienced four consecutive days of losses after the release of Q4 earnings reports from JPMorgan, Bank of America, Citigroup, Wells Fargo, and Bank of New York Mellon. The Invesco KBW Bank ETF, which monitors the 24 largest US banking stocks, declined by 1.4% at midday trading in New York, making it the sector’s worst streak since November 2023.

Among the worst performers for the day were Wells Fargo & Company, Western Alliance Bancorporation, Zions Bancorporation, and Citizens Financial Group, each experiencing declines of more than 3%. Citigroup reported adjusted earnings per share (EPS) of $0.84, surpassing estimated EPS by 3.7%. However, the bank’s revenue fell short of expectations, with a negative surprise of -6.94%. Bank of America exceeded expectations with an adjusted EPS of $0.70, beating estimated EPS by 2.9%, but missed revenue estimates by -1.03%. JPMorgan Chase reported a significant positive surprise in adjusted EPS, with $3.97 compared to an estimated $3.32, representing a 19.6% surprise. Wells Fargo reported adjusted EPS of $0.86, falling significantly short of the estimated EPS of $1.17, resulting in a -26.5% surprise. Bank of New York Mellon outperformed in terms of adjusted EPS, beating expectations by 13.3%, and revenue, surpassing estimates with a positive surprise of 3.9%.