JPMorgan & Goldman Sachs Earnings Exceed All Expectations

15 April 2021

    Wall Street's largest banks -JPMorgan and Goldman Sachs, are both off to an amazing first-quarter earnings season,  thriving against a backdrop of unusually buoyant capital markets.

     

    JPMorgan reported revenue of nearly 10% ahead of expectations at $33.12 billion, and EPS of nearly 50% ahead of expectations for the three months through March, thanks largely to one-off factors and extraordinary capital markets’ conditions. The bank's cost-income ratio, did, however, rise to 58% from 55% in the final quarter of 2020. 

     

    It’s wise to note that JPMorgan's numbers were boosted by the release of some $5.2 billion in reserves against possible loan losses that the bank had built at the start of the pandemic. The lender made $1.1 billion of fresh write-offs in the quarter.

     

    Goldman Sachs has too reported record revenue and earnings for the quarter, with equities markets revenue in particular rising over 68% from a year ago.

     

    Goldman stock rose 1.8% in premarket trading by 12:10 GMT yesterday, while JPMorgan stock fell 0.6%, reflecting disappointment at the comparatively soft performance of its Main Street lending operations.


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