U.S. stock futures were on the rise after a trio of bank earnings.
While Goldman Sachs posted second quarter earnings and revenue that fell, both numbers were still above expectations. The bank even raised its dividend by 47%. Net income slipped to $2.2 billion, or $5.81 a share from $2.35 billion, or $5.98 a share. Analysts were looking for $4.89. While total revenue did fall to $9.46 billion, it also beat expectations for $8.84 billion.
Better, total investment banking revenue came in at $1.86 billion, which was also better than analyst expectations for $1.77 billion. Even more impressive, Goldman just authorized a $7 billion buyback program – up from $5 billion year over year.
JP Morgan Tops Profits and Revenue Forecasts
JP Morgan just posted net income of $9.62 billion, or $2.82 a share – a marked improvement from the $8.316 billion, or $2.29 posted a year earlier. Revenue was up to $29.566 billion from $28.388 billion. Analysts were only looking for EPS of $2.50 on revenue of $28.835 billion.
“We continue to see positive momentum with the U.S. consumer — healthy confidence levels, solid job creation and rising wages — which are reflected in our Consumer & Community Banking results,” Jamie Dimon said, as quoted by CNBC. “Double-digit growth in credit card sales and merchant processing volumes reflected healthy consumer spending and drove 8% growth in credit card loans, while mortgage and auto originations showed solid improvement, and we continued to attract new deposits, up 3%.”
Wells Fargo Earnings Blew Past Expectations
Not to be outdone, Wells Fargo posted net income of $6.2 billion, or $1.30 a share – up from the $5.2 billion, or 98 cents a share posted a year earlier. Revenue did remain unchanged at $21.6 billion. Analysts were looking for EPS of $1.17 on revenue of $20.9 billion.
“The commitment of our team members to provide outstanding customer service was reflected in higher customer experience survey scores from our branches, continued growth in primary consumer checking customers, and an increase in referred investment assets as a result of the partnership between our Wealth and Investment Management team and our Community Banking team,” interim CEO Allen Parker said, as quoted by CNBC.
All are a strong indication the economy is still running at a solid pace.