Company Reports

PNC is battling the margin pressure blues similar to other regional banks. Some growth in specialized finance, but continues to invest for growth.

Recently, we listened to Bank of America speak at Deutsche Bank’s Global Financial Service Investor Conference where the big bank focused on its consumer banking strategy. The consumer bank has received renewed strategic focus as BAC gets past its mortgage putbacks & settlement woes. BAC sees more growth on the mass affluent side as the mass consumer sector continues to pull in its spending horns and save, while the former group continues to spend. BAC

JP Morgan’s strong mix of products and businesses provide the company with many levers to move earnings.  Still, operating expense savings more than offset lower interest income from margin compression and lower fee income.

Goldman Sachs enjoyed revenue strength from its high intellectual, low capital intensive businesses that overrided capital intensive FICC.  Core net income jumped 23% across M&A, Equity, Asset Mgt. GS GS GS

Wells Fargo showed good loan and unit growth, but earnings growth did not follow through as provisions increased and expenses up slightly too. We discuss our views on its loan growth, purchase accounting and higher rates and influence on deposit costs.

For decades, AmEx marketed itself as an upscale/luxury brand card offering pioneering gold/platinum/black card categories. But over the last 15 years of card evolution, other banking players have narrowed the lead that AmEx almost exclusively dominated. Will AmEx adapt well is the question?

Similar to many other Euro Banks, Barclays suffers from European-itis, as its “go-to” business format is still a work-in-process.  Combined with digitalized retail banking in the UK and a focus on UK & US credit card lending, this could lead it to a better operating model glide path. 

BNP’s revenues were higher with net income rising to EUR 1.6 billion (+ 18% YoY), despite its Single Resolution Fund contribution (EUR 245 million).

The takeaway message was that DB is working to deliver better shareholder value, which is great for that stakeholder, but could have various degrees of positive and negative implications for other stakeholders including the bondholder and credit counterparty ones.

Reported 2Q15 EPS of $0.97, but $1.14 on an adjusted basis which beat street consensus of $0.91.  All three main segments (Canadian and U.S. Retail and Wholesale Banking) reported good earnings growth. TD TD Toronto Dominion Toronto Dominion