BROWSE BY TOPIC
Stories of Interest
- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.
Stay Informed with the latest fanancialish news.
NEWSLETTERS & ALERTS
Quarterly Earnings: Goldman, Bank of America, TD Ameritrade, Charles Schwab
GOLDMAN'S BOND TRADING REVENUE SLUMPS 40%. Goldman Sachs reported improved EPS of $3.95/share (its shares outstanding fell nearly 6%), topping Wall Street expectations of $3.39/share. Meanwhile total revenue, including net interest income, fell 0.6% to $7.9 billion, while operating expenses fell 2% to $5.4 billion.
Unfortunately, Goldman reported a 40% drop in bond trading revenue, mirroring a broader weakness in trading activity that has plagued big U.S. banks – though Goldman’s decline was far worse than declines at JPMorgan (19%) and Citigroup (6%). It was the worst performance in Lloyd Blankfein’s tenure as Chairman and CEO.
Some of Goldman's other businesses performed better: (i) equities rose 8% to $1.9 billion; (ii) investing and lending jumped 42%; (iii) investment management revenues rose 13% to $1.5 billion; and, (iv) investment banking revenue fell 3% to $1.7 billion.
BANK OF AMERICA BEATS WALL STREET EXPECTATIONS. BofA reported a higher-than-expected quarterly profit on strength in its consumer bank and cost cuts that are beginning to bear fruit after years of branch closures, staff cuts and efforts to reduce technology and paper-related expenses. CEO Brian Moynihan and CFO Paul Donofrio both characterized the second quarter as one of the best in the bank's history.
Net income was rose 11% to $4.9 billion, or 46¢/share – beating analyst estimates of 43¢/share. Total revenue of $23 billion also beat average analyst estimates of $21.8 billion.
Even as big banks have reported better results, investors have been disappointed that profits are not growing faster. Last week, shares of JPMorgan, Wells Fargo and Citigroup each fell after beating analysts' estimates, as did Goldman Sachs today.
Analysts consider Bank of America the most interest-rate sensitive among big U.S. banks because of the way its balance sheet is constructed in terms of loan maturities, types of funding and hedges. Its net interest income, which measures the difference between its cost of funding and the income it generates from those funds, rose 8.6% to $11 billion in Q2.
TD AMERITRADE TOPS STREET 3Q FORECASTS. TD Ameritrade beat Wall Street expectations, reporting Q3 earnings of $231 million, or 44¢/share – vs. estimates of 41¢/share. Revenues of $931 million also top Street forecasts - $900 million.
SCHWAB STOCK SLIPS AFTER PROFIT RISES IN LINE WITH EXPECTATIONS. Charles Schwab shares fell -1.3% after the discount broker reported that Q2 profits rose to $575 million or 39¢/share – in line with analyst expectations. Revenue increased 17% to $2.1 billion from $1.8 billion, above the Street estimates of $2.1 billion. Clients opened over 350,000 new brokerage accounts during the quarter, with the year-to-date total reaching 719,000, marking the biggest first-half increase in 17 years. Total client assets rose 16% to $3.04 trillion.