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☆ Bank of America or Citi? Analysts say one stock is set to soar 50%
▼ + stars: | 2023-04-21 | by ( Weizhen Tan | ) www.cnbc.com time to read: +4 min

Two of them were Citi and Bank of America , both of which exceeded forecasts on revenue and other metrics. Bank of America: 'Superior resiliency' Bank of America continues to demonstrate a "Goliath is Winning" theme, Wells Fargo said in an April 18 note. The bank's earnings came in at 94 cents per share, above Wall Street's estimate of 82 cents, according to Refinitiv. Wells Fargo gave Bank of America a price target of $45, or potential upside of nearly 50% from Wednesday's close. Wells Fargo gave Citi a price target of $62, or potential 24% upside from Wednesday's close — smaller than the upside it gave Bank of America.

☆ Morgan Stanley tops analysts’ expectations on better-than-expected trading results
▼ + stars: | 2023-04-19 | by ( Hugh Son | ) www.cnbc.com time to read: +4 min

Morgan Stanley on Wednesday topped estimates for first quarter profit and revenue on better-than-expected trading results. Under CEO James Gorman, Morgan Stanley has become a wealth management giant thanks to a string of acquisitions. The bank gets most of its revenue from wealth and investment management, steadier businesses that help to offset volatile trading and banking results. First-quarter trading revenue dipped from a year ago as Wall Street comes down from a pandemic-era boom, but Morgan Stanley's traders managed to top expectations by roughly $250 million. He added that there was "no doubt" that Morgan Stanley would acquire more companies in wealth management, though nothing was imminent.

☆ Goldman Sachs misses revenue estimates after taking $470 million hit on Marcus loans
▼ + stars: | 2023-04-18 | by ( Hugh Son | ) www.cnbc.com time to read: +3 min

Unlike its more diversified rivals, Goldman gets the majority of its revenue from Wall Street activities, primarily trading and investment banking. Bad compsFixed income trading revenue fell 17% to $3.93 billion, roughly $230 million below the StreetAccount estimate, on lower activity in currencies and commodities. Despite the decline, it was still one of the Equities trading revenue slipped 7% to $3.02 billion, edging out the $2.9 billion estimate. While investment banking revenue remained weak, falling 26% from a year earlier to $1.58 billion, that was better than the $1.44 billion estimate. The bank's platform solutions business generated $564 million in revenue, a 110% increase from a year earlier and topping the $535.1 million estimate.

☆ Earnings playbook: Netflix and Goldman Sachs headline a big week of reports
▼ + stars: | 2023-04-16 | by ( Fred Imbert | ) www.cnbc.com time to read: +14 min

Tuesday Johnson & Johnson is set to report earnings before the open, followed by a call with management at 8:30 a.m. Goldman Sachs is set to report earnings before the open, followed by a call at 9:30 a.m. What history shows: Bespoke data shows Goldman tops earnings expectations 86% of the time. Netflix is set to report earnings after the bell, followed by a call with management at 6 p.m. Friday Procter & Gamble is set to report earnings before the open, with a conference call also slated for 8:30 a.m.

Wells Fargo fared less favorably, down 0.3%, and regional banks including Zions (ZION.O) and First Republic (FRC.N) fell. Net interest income, a measure of how much a bank earns from lending, surged 49% to $20.8 billion. Meanwhile, Wells Fargo set aside $1.21 billion in the quarter to cover for potential loan losses, compared to a release of $787 million a year earlier. "While most consumers remain resilient, we've seen some consumer financial health trends gradually weakening from a year ago," Mike Santomassimo, Wells Fargo finance chief, told analysts. More banking results are due over the coming week, including Bank of America (BAC.N) and Goldman Sachs (GS.N) on Tuesday and Morgan Stanley (MS.N) on Wednesday.

[1/2] Signage is seen at the JPMorgan Chase & Co. New York Head Quarters in Manhattan, New York City, U.S., June 30, 2022. While the crisis is not over yet, CEO Jamie Dimon said he expected the tumult from bank failures in March to eventually pass. The U.S. consumer and the economy remain robust, Dimon said, while cautioning that the banking crisis could turn lenders more conservative and impact consumer spending. "However, the storm clouds that we have been monitoring for the past year remain on the horizon, and the banking industry turmoil adds to these risks." It is expected to remain flat for the rest of 2023, the executives said.

[1/2] The Citigroup Inc (Citi) logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. First-quarter 2023 earnings from JPMorgan Chase & Co (JPM.N), Citigroup Inc (C.N) and Wells Fargo & Co (WFC.N) beat Wall Street expectations on Friday as consumer and corporate spending held up in the face of rate rises, although all three saw signs of a slowdown and made provisions accordingly. Net interest income, a measure of how much a bank earns from lending, surged 49% to $20.8 billion. Meanwhile, Wells Fargo set aside $1.21 billion in the quarter to cover for potential loan losses, compared to a release of $787 million a year earlier. "While most consumers remain resilient, we've seen some consumer financial health trends gradually weakening from a year ago," Mike Santomassimo, Wells Fargo finance chief, told analysts.

☆ JPMorgan has 25 to 30% upside after earnings, says Wells Fargo's Mike Mayo
▼ + stars: | 2023-04-14 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailJPMorgan has 25 to 30% upside after earnings, says Wells Fargo's Mike MayoMike Mayo, of Well Fargo Securities, joins 'Closing Bell' to discuss JPMorgan beating earnings expectations, the payoff of national banking, and credit contractions.

☆ Watch CNBC's full interview with Mike Mayo of Well Fargo Securities on bank earnings
▼ + stars: | 2023-04-14 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Mike Mayo of Well Fargo Securities on bank earningsMike Mayo, of Well Fargo Securities, joins 'Closing Bell' to discuss JPMorgan beating earnings expectations, the payoff of national banking, and credit contractions.

☆ What JPMorgan's Jamie Dimon, BlackRock's Larry Fink, and other Wall Street CEOs are saying about the impact of the banking crisis
▼ + stars: | 2023-04-14 | by ( Carter Johnson | Rebecca Ungarino | Hayley Cuccinello | ) www.businessinsider.com time to read: +2 min

JPMorgan, BlackRock, Wells Fargo, and Citi reported earnings Friday. Top execs described their response to the banking crisis — and future opportunities. The message was clear, wrote Wells Fargo bank analyst Mike Mayo in a note to clients Friday. Quarterly earnings calls held with research analysts marked an opportunity for Wall Street's biggest executives to face questions about the impact of the March banking crisis on their firms' bottom lines. Here's what the leaders of JPMorgan, BlackRock, Wells Fargo, and Citigroup had to say about SVB.

☆ Three major risks that have the banking industry on edge
▼ + stars: | 2023-04-10 | by ( Allison Morrow | ) edition.cnn.com time to read: +6 min

The toll of the WFH eraCommercial real estate — offices, apartment complexes, warehouses and malls — has come under substantial pressure, my colleague Julia Horowitz reports. Commercial property valuations could fall by roughly 20% to 25% this year, according to Rich Hill, head of real estate strategy at Cohen & Steers. About $270 billion in commercial real estate loans held by banks will come due in 2023. The proportion of commercial office mortgages where borrowers are behind with payments is rising, according to Trepp, which provides data on commercial real estate, and high-profile defaults are making headlines. That might seem simplistic, but it’s especially relevant for an industry as uniquely reliant on trust as banking is.

☆ We are moving from a period of bank crisis to bank recession, says Wells Fargo's Mike Mayo
▼ + stars: | 2023-04-04 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe are moving from a period of bank crisis to bank recession, says Wells Fargo's Mike MayoMike Mayo, Wells Fargo Securities senior bank analyst, joins 'Squawk on the Street' to discuss his thoughts on the banking system and his top picks.

☆ JPMorgan’s Jamie Dimon warns banking crisis will be felt for ‘years to come’
▼ + stars: | 2023-04-04 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +3 min

New York CNN —The banking crisis triggered by the recent collapses of Silicon Valley Bank and Signature Bank is not over yet and will ripple through the economy for years to come, said JPMorgan Chase CEO Jamie Dimon on Tuesday. He said that SVB’s high Interest rate exposure and large amount of uninsured deposits were already well-known to both regulators and to the marketplace at large. Current regulations, he argued, could actually lull banks into complacency without actually addressing real system-wide banking issues. Lawmakers in Congress, including Democratic Sen. Sherrod Brown of Ohio, have suggested that new legislation meant to regulate banks is in the works. But, wrote Dimon, “the debate should not always be about more or less regulation but about what mix of regulations will keep America’s banking system the best in the world.”

☆ Premarket stocks: What the OPEC cuts mean for Putin and Russia
▼ + stars: | 2023-04-04 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

OPEC+ was formed in 2016 to coordinate and regulate oil production and stabilize global oil prices. What it means for Putin: OPEC+’s decision to cut oil production could have big implications for Russia. After Russia invaded Ukraine last year, the United States and United Kingdom immediately stopped purchasing oil from the country. Higher-priced oil could help Russia pay for its war on Ukraine and also boosts revenue in Saudi Arabia. Current regulations, Dimon argued, could actually lull banks into complacency without actually addressing real system-wide banking issues.

☆ Bank crisis seems over in the short term, says Wells Fargo's Mike Mayo
▼ + stars: | 2023-03-30 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBank crisis seems over in the short term, says Wells Fargo's Mike MayoMike Mayo, Wells Fargo Securities, joins 'Closing Bell' to discuss the White House calling for stricter bank rules.

☆ The Fed is providing as much liquidity as possible, says Wells Fargo's Mike Mayo
▼ + stars: | 2023-03-27 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe Fed is providing as much liquidity as possible, says Wells Fargo's Mike MayoMike Mayo, Wells Fargo senior banking analyst, joins 'Squawk Box' to discuss what First Citizens Bank's purchase of SVB's assets means, liquidity available from the Federal Reserve, and more.

☆ Top banking analyst Mike Mayo just made two regional banks his prime picks to buy
▼ + stars: | 2023-03-22 | by ( Alex Harring | ) www.cnbc.com time to read: +3 min

Regional banks PNC and U.S. Bancorp could prove smart picks in the sector while it's still feeling pressure from the latest crisis, Wells Fargo said. Investors have zeroed in on regional bank stocks in recent days while trying to decipher whether plans to help First Republic shore up liquidity are enough to keep the bank afloat. The SPDR S & P Regional Bank ETF (KRE) has risen 6% this week, regaining some of the ground lost last week, when it slid 14%. U.S. Bancorp, the parent of U.S. Bank, completed its acquisition of Union Bank's regional franchise near the end of 2022. 'Highest quality banks' Mayo called both among the "highest quality banks," noting a strong history of underwriting.

☆ UBS could see big gains after forced Credit Suisse merger. Big U.S. banks may also be winners, analysts say
▼ + stars: | 2023-03-20 | by ( Alex Harring | ) www.cnbc.com time to read: +5 min

UBS ' acquisition of Credit Suisse could lead to big gains for the Swiss bank. UBS agreed to buy Credit Suisse for 3 billion Swiss francs, or around $3.2 billion, in a forced deal announced Sunday. As part of the deal, Credit Suisse shareholders receive 1 UBS share for every 22.48 Credit Suisse shares they hold. But Barclays analyst Amit Goel wasn't so sure, cutting his view on European banks to neutral from positive on Monday. Wells Fargo's Mike Mayo, meanwhile, sees opportunity for U.S. banks coming out of the UBS takeover of Credit Suisse.

☆ Top banking analyst Mike Mayo sees this regional bank gaining deposits from the crisis
▼ + stars: | 2023-03-14 | by ( Hakyung Kim | ) www.cnbc.com time to read: +2 min

It's "business as usual" for PNC , according to Wells Fargo analyst Mike Mayo, who said after an onsite meeting with PNC's CEO that the Pittsburgh-based regional bank is well-positioned for gains. PNC should benefit from a flight to quality," Mayo wrote in a Monday client note. Wells Fargo also believes that funding is strong for PNC, and expects it to see increases in both consumer and commercial deposits. Pricing on loan and deposits may ease incrementally, Mayo adds, which would further benefit PNC. "Before recent events, PNC indicated the move from non-interest bearing to interest bearing deposits had accelerated," Mayo continued.

"You're going to see every board member tell people to keep your money in multiple bank accounts," said Wesley Chan, cofounder and managing partner at FPV Ventures. "I'm not concerned about Bank of America," one business owner said as they left a Bank of America branch on Monday. Big banks can be less competitive, for example, on interest rates because of the security they offer. I think you'll see startups, in particular, questioning moving to the big banks given just how much more expensive it is," Matheson added. "The big banks are in very good shape, and so it probably is a stabilizing decision to move those deposits.

☆ Wells Fargo upgrades JPMorgan Chase, says 'Goliath is winning' as uncertainty grows around banking
▼ + stars: | 2023-03-13 | by ( Hakyung Kim | ) www.cnbc.com time to read: +2 min

JPMorgan Chase is a source of strength during an uncertain time for the banking sector, according to Wells Fargo. Analyst Mike Mayo also raised his price target to $155 from $148, which implies 16% upside from Friday's close price. "JPM epitomizes our theme of 'Goliath is Winning,'" Mayo wrote in a client note on Monday. Mayo added that, since the 2008 financial crisis, JPMorgan Chase has effectively taken de-risking measures. JPMorgan shares were down more than 2% on Monday during premarket hours, as the broader banking sector took a hit.

London CNN —The failure of Silicon Valley Bank is rattling markets and raising uncomfortable questions: Will it undermine the broader banking system and start a new meltdown? A crucial lender to US technology startups, the bank came under pressure as Silicon Valley funding dried up, the result of an economic slowdown and rapidly rising interest rates. Bank stocks rattledFounded in 1983, SVB provided financing for almost half of US venture-backed technology and health care companies. SVB put the bonds up for sale as customers, facing leaner times, pulled their money from the bank. Silicon Valley Bank had about $209 billion in total assets and $175 billion in total deposits as of the end of last year, according to the FDIC.

☆ Shares of SVB Financial fall more than 50% as tech-focused bank looks to raise more cash
▼ + stars: | 2023-03-09 | by ( Jesse Pound | ) www.cnbc.com time to read: +2 min

In this photo illustration of the TradingView stock market chart of SVB Financial Group seen displayed on a smartphone with the SVB Financial Group logo in the background. Shares of tech-focused bank SVB Financial plunged by more than 50% on Thursday after the company announced a plan to raise more than $2 billion in capital to help offset losses on bond sales. SVB Financial fell sharply after the bank announced a plan to raise more cash. The company reported $28.8 billion in available-for-sale securities on its balance sheet at the end of December, as well as $95.3 billion held-to-maturity securities. The bank cited higher interest rates and "elevated cash burn from our clients" as reasons to raise the new capital.

☆ Since David Solomon became Goldman Sachs CEO, more than 80 partners have left. See the running list here.
▼ + stars: | 2023-03-03 | by ( Carter Johnson | Dakin Campbell | ) www.businessinsider.com time to read: +6 min

David Solomon has been Goldman Sachs' CEO for more than four years since succeeding Lloyd Blankfein. There's been a lot of talk about the morale at Goldman Sachs. In reality, Solomon said, there were fewer "partner transitions at Goldman Sachs" in 2022 than any year "going back to 2014." "At the moment, year-to-date, our turnover is at a 5-year low, not just for partners, in the whole firm," Solomon added. Here is a running list of Goldman's partners that have retired from the firm — or moved on to roles at other companies — since Solomon became CEO.

☆ Analysis: Goldman Sachs faces hard sell for its consumer assets
▼ + stars: | 2023-03-01 | by ( Saeed Azhar | ) www.reuters.com time to read: +5 min

NEW YORK, March 1 (Reuters) - Goldman Sachs Group Inc (GS.N) is embarking on a tough sales pitch to investors for assets in its troubled consumer business, which has dragged on earnings and may lack appeal for potential buyers. In an unexpected move, Chief Executive Officer David Solomon said on Tuesday the bank is looking at 'strategic alternatives' for the consumer business, a signal of a possible sale. Solomon had championed Goldman's foray into consumer banking since taking the reins at the Wall Street powerhouse in 2018. The consumer operations largely failed to gain traction against well-established consumer banks and lost billions of dollars due to credit provisioning. Mike Mayo, an analyst at Wells Fargo, wrote in a note that the key question about Goldman's consumer business is: "who would be willing to buy it, and at what price?"

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