The KWB Bank Index is up some 24% during that stretch.
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Mortgage fees declined 15 percent to $1.42 billion as higher interest rates curtailed new and refinancing loan activity industrywide. Positive macroeconomic performance is providing the strongest tailwinds in almost a decade.
Wells Fargo reported earnings per share of 96 cents, down from a dollar. Wells Fargo & Company now has a consensus rating of Hold and an average price target of $50.96. Despite mixed bag of results among the three companies, all the three companies’ shares are trading in the green. They are also projecting the Low EPS estimate as $0.88 as compared to the Higher EPS estimate of $1.04. That missed forecasts for $1 per share.
However, there were some bright spots in a quarter marked by setbacks. John Stumpf quit as chief executive in October in the wake of the investigation into claims that the bank’s employers opened as many as two million unauthorised new accounts using current customer names.
In the ARM arena, 5 year loans are published at 3.750% at Wells Fargo with a starting April of 3.857%. In July, Mary Mack, president of Wells Fargo Advisors, was promoted to lead the company’s community bank. Year to Date performance value (YTD perf) value is -0.56%.
Why did banks, and Bank of America in particular, perform so well in 2016? While elevated trading volumes for the period should have helped trading commissions, the equity trading desk should have also benefited from the rally in share price across sectors, as this will result in sizable mark-to-market gains on the equity trading portfolio.
Number of analysts are covering this stock and now stock has got OUTPERFORM rating from 2 analysts of Thomson Reuters, 7 analysts given HOLD rating to the stock and 1 given UNDERPERFORM rating to CenturyLink, Inc. Revenue for 2016 was $88.3 billion, up 3 percent from previous year.
On a full-year basis, Wells recorded $88.3 billion in revenue, up 3% from 2015; full-year net income came in at $21.9 billion, down from $22.9 billion in 2015. Excluding items, BOA earned $0.42 per share, handily beating consensus estimates of $0.38. Overall revenue was flat at $21.6 billion. The bank aims to slash $5 billion from annual operating expenses by 2018.
ROA (net income to average assets): 1.08%. Additionally, the Fed’s decision to hike benchmark interest rates for only the second time since the economic downturn coupled with strong growth in loans for the industry should boost JPMorgan’s top line. Driehaus Mngmt Ltd Llc last reported 5,473 shares in the company. It also increased its holding in Apple Inc (NASDAQ:AAPL) by 30,166 shares in the quarter, for a total of 223,592 shares, and has risen its stake in Jpmorgan Chase & Co (NYSE:JPM). Eight investment analysts have rated the stock with a sell rating, twelve have assigned a hold rating and sixteen have issued a buy rating to the stock.
PNC posted a net income of $3.9 billion for 2016, down from $4.1 billion in 2015.
As for the months ahead, Dimon said the U.S. economy is just getting started: “The U.S. economy may be building momentum”.
Matt O’Conner, an analyst with Deutsche Bank, has estimated a $1 billion reduction to pre-tax earnings and $2 billion in fewer share buybacks in 2017.
JPMorgan Case and Bank of America rose 1 per cent and Wells Fargo rose 2 per cent after reporting earnings that were higher than analysts expected.
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Have you been eager to see how Wells Fargo & Company (WFC – Free Report) performed in Q4 in comparison with the market expectations?
