Balance sheet season opened in big banks in the USA

US investment banks JPMorgan Chase, Citigroup and Wells Fargo announced their balance sheets for the second quarter of the year.

According to the statement made by JPMorgan Chase, the bank’s net profit in the second quarter of the year increased by approximately 67 percent compared to the same period last year, reaching $14.5 billion. JPMorgan Chase posted a net profit of $8.6 billion in the second quarter of 2022.

The company’s earnings per share also rose to $4.75 in the second quarter of this year. Earnings per share of the bank was $2.76 in the same period last year.

JPMorgan Chase’s second-quarter revenue also rose 34 percent year-on-year to $41.3 billion. The bank had a revenue of $30.7 billion in the same period of 2022.

JPMorgan Chase Chief Executive Officer (CEO), Jamie Dimon, stated in the statement, pointing out that they will meet possible new requirements in capital and bank liquidity as in the past, “However, we warn that significant regulatory changes will likely have consequences for markets and end users.”

Emphasizing that almost all business lines continued to grow in the second quarter, Dimon stated that the US economy continues to be resilient, consumer balance sheets are in a healthy state, and consumers are spending, albeit at a slower pace.

Referring to the risks he sees in the near future, Dimon noted that although they cannot predict exactly how these factors will result, they manage the Bank in a way that will reliably meet the needs of its customers in all environments.

Decline in Citigroup’s profits

According to the statement made by Citigroup, the net profit of the bank in the second quarter of this year decreased by 36 percent compared to the same period of last year and decreased to $ 2.9 billion. The bank had a net profit of $ 4.5 billion in the second quarter of 2022.

Earnings per share of the corporation was recorded as $1.33 in the second quarter of this year. Citigroup’s earnings per share was $2.19 in the same period of 2022.

The bank’s revenue in the second quarter of this year, on the other hand, decreased by 1 percent compared to the same period of the previous year, to $ 19.4 billion. Citigroup announced that its revenue in the same period of 2022 was $ 19.6 billion.​​

Citigroup CEO Jane Fraser, whose views were given in the statement, stated that revenues fell compared to last year’s strong second quarter due to customers’ waiting while the debt limit in the USA expires.

Noting that the long-awaited recovery in investment banking has not yet materialized and it has been a disappointing quarter, Fraser noted that they are proceeding in line with their plan and that they are continuing their commitment to reach their medium-term return targets.

Wells Fargo profits up 57 percent

According to the statement made by Wells Fargo, the institution’s net profit in the second quarter of this year increased by 57 percent compared to the same period last year, reaching $ 4.9 billion. The bank had a profit of $3.1 billion in the same quarter of 2022.

The corporation’s earnings per share rose to $1.25 in the second quarter of the year. Earnings per share of the bank was 75 cents in the same period of 2022.

Wells Fargo’s revenue in the second quarter of 2023 increased by 20 percent compared to the same period last year, reaching $20.5 billion. The bank had revenue of $17 billion in the same period of 2022.

Assets managed by Blackrock reach $9.4 trillion

Management of Blackrock company underTwo assets reached $9.4 trillion as the stock market rally and investors turned to exchange-traded funds and cash management products.

According to the company’s financials released on Friday, flow to its long-term products reached $57 billion in the second quarter, while net flow to all its funds was $80 billion. The median estimate of analysts surveyed by Bloomberg was that this figure would be $81 billion.

Blackrock’s adjusted net income increased 25 percent from the prior year to $1.4 billion, or $9.28 per share, beating Wall Street’s expectations of $8.45. The company’s second-quarter revenue fell 1 percent to $4.5 billion.