Third-quarter results of three big U.S. banks

3:55 PM October 14, 2020

Before today’s U.S. market open three big banks released their third-quarter results - Goldman Sachs (GS.US), Bank of America (BAC.US) and Wells Fargo (WFC.US). How did they cope with the demanding environment caused by the pandemic? Did their earnings suffer from credit losses provisions? Below we present some key figures:

Goldman Sachs (GS.US):

  • Earnings: $9.68 a share vs $4.79 a share in the year-ago period

  • Bloomberg consensus of $5.52 a share (range $3.34 to $7.25)

  • Revenue from trading $4.55 billion against forecasted $4.41 billion

  • Net revenue $10.78 billion (+30% y/y), estimate $9.40 billion

Wells Fargo (WFC.US) 

  • Earnings: 42 cents a share vs 92 cents a share in the year-ago period

  • Bloomberg consensus of 45 cents a share (range 34c to 63c)

  • Revenue $18.9 billion (-14% y/y), estimate $17.96 billion

  • Provision for credit losses $769 million (+11% y/y), below expectations of $1.65 billion

Bank of America (BAC.US) 

  • Earnings: 51 cents a share vs 56 cents a share in the year-ago period

  • FactSet consensus of 49 cents a share

  • Revenue from trading rose 3.6% to $3.34 billion while analysts forecasted $3.5 billion

  • Provision for credit losses increased to $1.39 billion (+77% y/y), below expectations of $1.88 billion

Goldman Sachs (GS.US) posted earnings that blew away Wall Street’s estimates. Shares rose 3.96% in pre-market trading to trade near $216.90. The area at $215 might be regarded as crucial resistance level. Source: xStation5

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