Our favorite period has begun – the time of quarterly reporting. And this week major banks such as JPMorgan Chase, Citigroup, Wells Fargo, Bank of America and Morgan Stanley shared their financial data. Let’s find out what success these giants can boast of in the second quarter of this year and what our analyst Maxim Artyomov thinks about their shares.
JPMorgan: Q2 2021 Financial Statement
On July 13, JPMorgan Chase reported on the results of the second quarter of this year. Basic data of the American financial holding company in comparison with statistics for April-June 2020:
- Revenue – $ 31.4 billion, -7%, forecast – $ 29.95 billion;
- Net profit – $ 11.95 billion, + 155%;
- Earnings per share (EPS) – $ 3.78, + 174%, forecast – $ 3.09.
The significant growth in net profit of JPMorgan is associated with the incredible volume of mergers and acquisitions, as well as the dissolution of reserves for possible losses on debt. However, on the day the report was published, this did not save JPMorgan Chase (NYSE: JPM) stocks from a 1.49% dip to $ 155.65 per share.
Technical analysis of JPMorgan Chase shares by Maxim Artyomov
“JPMorgan shares, having completed the correction, continue to recover their positions and move within the upward channel. At this stage, the target for growth is the $ 160 mark, a breakdown of which will mean the continuation of the upward trend. The 200-day moving average confirms the growth. option to update historical highs and test the $ 175 mark. “
Citigroup Q2 2021 Financial Statement
On July 14, Citigroup shared its successes in April – June of this year. The main drawdowns were observed in bond transactions – up to $ 3.21 billion, that is, by 43%, compared to statistics for the second quarter of 2020. Basic data:
- Revenue – $ 14.47 billion, -12%, forecast – $ 17.61 billion;
- Net profit – $ 6.19 billion, + 490%;
- Earnings per share (EPS) – $ 2.85, + 650%, forecast – $ 2.01.
On the same day, the value of securities of Citigroup (NYSE: C) decreased by 0.29%, to $ 68.17 per unit. Note that a more significant drawdown of shares was observed the day before – by 1.54%, to $ 68.37.
Technical analysis of Citigroup shares by Maxim Artyomov
“Citigroup shares continue to trend sideways in the area of support. At this stage, we can assume that against the background of the reporting, the price will break the 200-day moving average. In the future, the decline may continue to the area of the next support level – at around $ 61.4. scenario, a rebound from the 200-day moving average and a continuation of the upward trend may occur. “
Wells Fargo Q2 2021 Financial Statement
On July 14, another of the largest representatives of the banking sector, Wells Fargo, reported. Deals with bonds in the second quarter lost 41%, reaching $ 888 million. As for the basic data, they are:
- Revenue – $ 20.27 billion, + 10.85%, forecast – $ 17.77 billion;
- Net profit – $ 6.04 billion, + 256%;
- Earnings per share (EPS) – $ 1.38, + 236%, forecast – $ 0.93.
Unlike the shares of the aforementioned competitors, Wells Fargo (NYSE: WFC) gained 3.98% on the day of the quarterly report, to $ 44.95. Although on July 13, the bank’s quotes also showed a downward movement – by 2.11%, to $ 43.23.
Technical analysis of Wells Fargo shares by Maxim Artyomov
“Wells Fargo shares are positive and continue to rise. At the moment, the quotes have formed a” Wedge “technical analysis pattern and are testing the resistance level. This pattern may be worked out in the form of a continuation of the upward trend, as evidenced by the 200-day Moving Average, which continues to be at the bottom of the chart. The target for growth in the current situation may be the resistance level at around $ 52 “.
Bank of America: Q2 2021 Financial Statement
The data for April-June of the current year, the second US bank in terms of assets, Bank of America, was also presented on July 14. Like other heroes of this material, in the second quarter the amount of proceeds from transactions with bonds decreased – to $ 1.97 billion, by 38%. But income from trading in stocks showed an increase – by 32.5%, to $ 1.63 billion. Key statistics for the quarter:
- Revenue – $ 21.47 billion, -4%, forecast – $ 21.8 billion;
- Net profit – $ 8.96 billion, + 173%;
- Earnings per share (EPS) – $ 1.3, + 178%, forecast – $ 0.77.
Investors were unhappy with the decrease in revenue, and on the same day Bank of America (NYSE: BAC) shares fell 2.51% to $ 38.86. The price of securities has been declining for the third trading session in a row, during this period the volume of price reduction was 4.4%.
Technical analysis of Bank of America shares by Maxim Artyomov
“Against the backdrop of the release of reports, Bank of America shares continue to decline. At this stage, the price, having left the boundaries of the ascending channel, is testing the support level. At the same time, a” Wedge “technical analysis figure has formed on the daily chart. falling prices in the area of the 200-day moving average. The target will be the mark at $ 36. Further, the quotes may bounce off the moving average and continue the upward trend. The benchmark for growth can be considered a mark at $ 44 “.
Morgan Stanley: Q2 2021 Financial Statement
On July 15, Morgan Stanley released the results for the second quarter, which, it is worth noting, exceeded analysts’ expectations. The company says its strong revenue and profit figures reflect excellent statistics across all of its business segments and regions. Let’s find out what amounts we are talking about:
- Revenue – $ 14.76 billion, + 8%, forecast – $ 13.98 billion;
- Net profit – $ 3.5 billion, + 10%;
- Earnings per share (EPS) – $ 1.89, -6%, forecast – $ 1.66.
Securities of Morgan Stanley (NYSE: MS) reacted to the provided financial data with weak, but still growth – by 0.18%, to $ 92.63. During this week, the value of the bank’s shares increased by 2.5%.
Technical analysis of Morgan Stanley shares from Maxim Artyomov
“Morgan Stanley continues the upward trend. At this stage, the quotes are trading under the resistance level, which is in the area of the historical maximum. In the future, the price may renew the maximum values and continue to rise. The upward trend is confirmed by the 200-day moving average, which also shows an upward trend. . The benchmark for growth in the future may be the mark of $ 99 “.
Summing up the result
This week, major American banks – JPMorgan, Citigroup, Wells Fargo, Bank of America and Morgan Stanley – reported on their successes for the second quarter of 2021. All of them can boast that their net profit increased in April-June. According to the published data, the banks managed to achieve this result largely due to the dissolution of reserves for possible debt losses.
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