Veteran banks analyst Richard Bove, discusses Q2 earnings for its US banking industry using ForexmnTV.

Victoria Scholar

Victoria Scholar @VictoriaSForexmn
Writer, London

Second quarter (Q2) sales season for its US banking industry is at full swing, even with a mixed group of results thus far. Here’s just a roundup of those banks’ Q2 scorecards to date.

JPMorgan

JPMorgan shares closed higher on Friday after reporting a beat on the top and bottom line. Revenue increased 6.5% to $28.39 billion. The bank saw Q2 profit jump 18% to hit a record $8.32 billion.

Revenues in its trading division was a bright spot, rising 13% to hit $5.4 billion and soaring past expectations. CEO, Jamie Dimon, said ‘we view good world wide economic growth, especially within the US, where consumer and small business sentiment is top ‘. Dick Bove, veteran banks analyst and chief strategist at Hilton Capital Management, toldForexmnTV that the numbers were superb.

Citigroup

Citigroup’s Q2 revenue came in at $18.47 billion, below expectations at $18.51 billion. Net income per share hit $1.63, ahead of Thomson Reuters I/B/E/S expectations for $1.56 and up from $1.28 in the same period last year.

Shares closed Friday’s session lower on the back of disappointing numbers, and the stock has sharply underperformed the wider sector year-to-date. Bove described the Citigroup results as mediocre. He said the company is ‘building a great deal of mistakes’ and the stock ‘ought to be avoided’. He argued that Citigroup could be the most impacted by trade tensions between the US and China because ‘at a point Citigroup promised itself to be the greatest trade fund business on earth ‘.

Bank of America

Shares in Bank of America (BoA) jumped after it reported revenues of $22.6 billion, topping estimates. Fixed income, currencies and commodities (FICC) trading revenue hit $2.29 billion, also ahead of forecasts.

Adjusted earnings per share (EPS) hit 64 cents, beating Bloomberg’s forecast for 57 cents. Bove said BoA is his favourite stock in the sector, and has the potential to rise to $60 a share. He also added that chief executive Brian Moynihan ‘has been demonstrated to be a specialist CEO’.