The Financial Select Sector SPDR Fund XLF, an exchange-traded fund that provides exposure to a wide range of financial companies in the U.S., on Friday reached its highest level since March 7, 2023.
This represented a complete recovery from the selloff caused by the collapse of Silicon Valley Bank (SIVB), which had led to a significant decline in banking stocks.
Major U.S. banks such as JPMorgan Chase & Co. JPM, Wells Fargo & Co WFC, BlackRock Inc. BLK, Citigroup Inc. C, and State Street Cor. STT announced earnings for the last quarter that exceeded expectations. However, both BlackRock and State Street reported lower-than-expected revenues.
While the ETF tracking large financial corporations has already recovered its pre-SIVB levels, regional bank stocks, as tracked by the SPDR S&P Regional Banking ETF KRE are still about 25% lower than they were prior to the bank turmoil in March.
Chart: US Financial Stocks Recover All Losses After SIVB Collapse
![](https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/07/14093851/XLF_2023-07-14_15-38-37_87dd8-1024x869.png)
How Have U.S. Major Banks Reported Last Quarter?
- JPMorgan Chase outperformed expectations in the second quarter with outstanding results. The bank posted earnings per share (EPS) of $4.75, well above the expected $4.00 and materially up from the same quarter last year.
Revenue increased by 34% to $42.4 billion, exceeding the Street’s forecast of $38.84 billion. This outstanding performance was aided by a 44% increase in net interest income to $21.9 billion.
JP Morgan Chase & Co. shares were 2% higher at the open on Friday.
Read Now: Why JPMorgan Shares Are Surging Today
- Wells Fargo reported EPS of $1.25 in the second quarter, surpassing the average analyst estimate of $1.14. This represents an increase from $1.23 in the first quarter and $0.75 in the same quarter last year.
Total revenue was $20.5 billion, slightly more than the expectation of $20.1 billion. While it was down from $20.7 billion in the first quarter of 2023, it was up from $17.0 billion in the second quarter of 2022.
At the opening bell, Wells Fargo stock was up 2.8%. - BlackRock reported quarterly earnings of $9.28 per share, above the $8.43 per share consensus expectation. This represents an increase from earnings per share of $7.36 in the prior year and $7.93 in the preceding quarter.
Revenues were somewhat lower than expected, at $4.46 billion vs $4.47 billion. But, they were only modestly lower than in the previous year’s same period and more than the $4.24 billion recorded in the first quarter.
BlackRock stock fell 2% at the open.
- Citigroup announced EPS of $1.33 in the second quarter, exceeding the projected $1.31 and improving by 1.9% from a year earlier. But earnings fell significantly from $2.19 in the first quarter.
Revenues totaled $19.44 billion, exceeding the consensus figure of $19.34 billion and representing a 0.5% rise over the previous year. Despite this, they are down from $21.45 billion in the first quarter.
Citigroup was flat at the open. - State Street reported EPS of $2.17, exceeding the $2.10 expected. This result marked a substantial rise from $1.5 in the previous quarter and $1.94 in the previous year’s same quarter. But revenue fell short of forecasts, totaling $3.11 billion, compared to the expected $3.14 billion.
Revenues grew from $2.95 billion the previous year but fell slightly from $3.10 billion the prior quarter.
State Street declined 4.3% in the first minutes of trading.
Now Read: US Stock Futures On Edge After 4-Day Winning Streak As Big Bank Earnings In Focus: Analyst Sees Fed Nearing ‘End Game’
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.