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Leading banks’ earnings have both beat and missed analysts’ expectations. Goldman Sachs, Citigroup, and Bank of America stocks are all down now.
This week, many financial organizations are releasing their first-quarter earnings. Among them are JPMorgan Chase & Co (NYSE: JPM), Wells Fargo & Co (NYSE: WFC), and Goldman Sachs Group Inc (NYSE: GS). Goldman Sachs has delivered its earnings report in the morning today.
It turned out Goldman Sachs earnings have both beat and missed analysts’ expectations. The bank’s total revenue made up $8.74 billion in comparison with the $7.84 billion estimate. Its investment banking revenue of $2.18 billion has also surpassed expectations of $1.54 billion. However, Goldman Sachs has not managed to live up the predictions on diluted earnings per common share (EPS). In the first quarter of 2020, EPS made up $3.11, versus the $3.28 estimate. In comparison, in the year-ago period EPS was $5.71.
Godman Sachs CEO David Solomon said:
“Our quarterly profitability was inevitably affected by the economic dislocation. As public policy measures to stem the pandemic take root, I am firmly convinced that our firm will emerge well-positioned to help our clients and communities recover.”
Goldman Sachs has also improved its net revenues in Global Markets. They made up $5.16 billion for the first quarter of 2020, which is 28% higher than the first quarter of 2019 and 48% higher than the fourth quarter of 2019. But the bank saw a decrease in net revenues in Asset Management. In the period considered, they were $96 million, while in the year-ago figures were $1.79 billion. The Q4 2019 net revenues in Asset Management totaled $3.00 billion.
Goldman Sachs Stock Performance
On Tuesday, Goldman Sachs stock closed at $178.23 per share, which means it is down 22% from the price at the beginning of 2020. Today, GS stock opened at $170.63, but later rose. At the moment of writing, Goldman Sachs stock is down again, losing 0.27% and trading at $177.75.
At the beginning of the year, Goldman Sachs stock was somewhere about $245.21. The plunge is a result of the coronavirus pandemic that has negatively affected all kinds of stocks.
Citigroup and Bank of America Q1 Earnings
Citigroup’s earnings per share made up $1.05 on revenue of $20.73 billion. The forecast was a bit different, $1.59 on revenue of $19 billion. In comparison, in the first quarter of last year, EPS was $1.87 on revenue of $18.58 billion. In Q4 2019, EPS was $2.15 on the $18.38 billion revenue.
As for the stock, Citigroup shares have plunged by 43% from the beginning of the year. The highest mark was $83.11 on January 14. As of today, the opening price was $43.37. At the moment of writing, Citigroup stock is 4.10% down, at 43.56 per share.
Bank of America can’t boast great performance as well. Its first-quarter profit decreased by 45% as the company set aside $3.6 billion for loan-loss reserves because of the COVID-19 outbreak. While its $22.8 billion revenue met expectations, its profit of $4.01 billion, or 40 cents a share did not, as analysts predicted $0.46 per share.
Bank of America stock closed at $23.73 yesterday but dropped to $22.16 today. At the moment of writing, it makes up $22.22 per share, or 6.36% down.