Hello Readers, It is one of our favorite seasons here at Inside Business – Earnings Season! This time around, we will get lots of Q4 and full-year results. We are kicking off the earnings period with the financial sector; today, we got earnings from some of the nation’s top financial institutions, including JPMorgan Chase, BlackRock, and Bank of America. In the next several weeks, we will get results from tech, food & beverage, and health, among others. Which company’s quarterly and/or full-year earnings are you looking forward to the most? Check back here, as we will cover most of them. Happy Friday and happy MLK weekend! :-) |
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JPMorgan Chase reported its Q4 earnings on Friday, beating expectations for revenue and EPS. The bank earned $35.57B in revenue, up 17% YoY. JPMorgan posted $20.3B in net interest income, up 48% YoY. The bank posted a profit of $11.01B, up 6% YoY. EPS was $3.57. More: - JPMorgan reported a $2.3B provision for credit losses, a 49% increase from Q3.
- CEO Jamie Dimon said the bank still doesn’t know the ultimate effect of the war in Ukraine, inflation, and the unprecedented quantitative tightening.
- CFO Jeremy Barnum said the bank expects the U.S. to enter a recession by Q4, with unemployment reaching 4.9%.
- JPMorgan shares were up more than 2% by afternoon trading on Friday.
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BlackRock reported an 18% decline in Q4 profit on Friday. The world’s largest asset manager posted $4.34B in revenue, down 15% YoY, and a net income of $1.36B, or $8.93 a share. BlackRock ended the quarter with $8.59T under management, down from more than $10T reported a year earlier but up from $7.96B posted in Q3. More: - BlackRock reported $146B in long-term net inflows for Q4.
- BlackRock announced it is taking a minority stake in a 401(k) provider Human Interest.
- BlackRock did not disclose the financial details of the deal.
- Human Interest provides 401(k) services to small businesses; the San Francisco company was last valued at $1B in 2021.
- BlackRock shares were down ~0.3% during afternoon trading on Friday.
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China has taken minority stakes with special rights in two of Alibaba Group’s businesses. The Chinese government has been taking “golden shares,” as they are referred to, in large Chinese companies in recent years, particularly ones in the tech sector with large troves of user data. More: - Alibaba has been facing regulatory scrutiny in China over the last two years.
- The stakes are usually equivalent to 1% of the company and are purchased with state-backed funds or firms.
- The investment usually comes with a board seat and/or veto rights on critical business decisions.
- According to China’s business registration records, state-owned entity Zhejiang Media Group acquired a 1% stake in Alibaba’s Youku Film and Television unit in September.
- Zhejiang has appointed Jin Jun, the general manager of one of its subsidiaries, to the board of Youku.
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Wells Fargo reported its earnings on Friday, reporting a 50% drop in profits. The bank posted a decline in revenue to $19.66B from $20.86B reported last year. Net income came in at $2.86B, or 67 cents a share, from $5.75B reported in the previous year. More: - Wells Fargo set aside a $957M provision for credit losses.
- Last month, the bank said it would have a $2.8B after-tax operating loss related to legal and regulatory costs.
- Wells Fargo’s Consumer Banking and Lending unit generated $9.46B in revenue, up 8% YoY.
- The bank’s home lending revenue declined 57%.
- Wells Fargo shares were up more than 3% during afternoon trading on Friday.
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Bank of America released its Q4 results on Friday, reporting better-than-expected earnings. The bank posted $24.5B in revenue, net of interest expense, up 11% YoY. Net income came in at $7.1B, or 85 cents a share. More: - BofA reported $14.7B of net interest income, up 29% YoY.
- BofA’s Consumer Banking unit reported a record $3.6B net income.
- Its investment banking fees fell 50% to $1.1B.
- BofA posted a $1.1B provision for credit losses, up from the $1.6B reported same period last year.
- The bank said its net charge-offs were still below pre-pandemic levels.
- BofA shares were up more than 2% during afternoon trading on Friday.
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Citigroup released its Q4 earnings on Friday, reporting a more than 20% drop in profits. The bank posted revenue of $18.01B, up from the $17B reported last year. Net Income came in at $2.5B, or $1.16 a share, down from $3.2B, or $1.46 per share, reported last year. More: - Citigroup posted net interest income of $13.27B.
- The bank set aside a $1.85B provision for credit losses.
- Citigroup reported $3.16B from Fixed Income revenue, up 31% YoY.
- Citigroup’s shares were up ~1.7% during afternoon trading on Friday.
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- Twitter is considering selling inactive usernames through an online auction. Last month, CEO Elon Musk said he wanted to remove inactive Twitter accounts and free up about 1.5 billion usernames on the platform.
- U.S. Treasury Secretary Janet Yellen warned that the U.S. would hit its $31.4T debt limit on Jan. 19. Yellen said the Treasury would need to take extraordinary measures to prevent the U.S. from defaulting on its debt obligations.
- UnitedHealth reported its quarterly earnings on Friday, posting a revenue of $82.79B, 12% YoY. The insurer said premiums grew to $64.7B in the quarter, up 12% YoY.
- Delta Airlines reported its Q4 earnings, posting a revenue of $12.29B and a net income of $828M. The airline's operating costs rose 19% in Q4 from 2019, including $2.8B in fuel costs, up 42% from 2019.
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 |  | Vanessa Omeokachie is a writer for Inside.com; she writes the daily Inside Business newsletter. Her interests include finance, technology, and entrepreneurship. In her free time, she enjoys reading, hiking, attending concerts and music festivals, traveling, and exploring. Connect with her on Twitter @VanessaOmeo or on LinkedIn. |   | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. | |
