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Bank Stock Roundup: Q3 Earnings in Full Swing; RF, FITB, COF Post Decent Numbers

Swayta Shah

Performance of major banks remained bullish over the last five trading days as quarterly numbers revealed that banks were able overcome the challenging operating backdrop to some extent. Also, management commentary for the quarters ahead was fairly positive.

Banks reported decent third-quarter numbers on the back of rise in non-interest income, manageable expense levels (despite undertaking technology upgrades) and modest loan growth. Also, rebound in mortgage banking business was a major positive.

On the other hand, net interest income and margins remained under pressure owing to lower interest rates and flattening/inversion of the yield curve in the July-September quarter. Further, banks witnessed an increase in credit costs.


Company

Last Week

6 months

JPM

3.7%

11.8%

BAC

3.3%

5.7%

WFC

2.3%

9.9%

C

3.7%

6.5%

COF

2.4%

5.7%

USB

2.3%

10.6%

PNC

1.4%

10.3%


Over the last five trading sessions, JPMorgan JPM and Citigroup C were the major gainers, with both their shares gaining 3.7%. Moreover, shares of Bank of America BAC rallied 3.3%.

In the past six months, shares of JPMorgan and U.S. Bancorp USB have jumped 11.8% and 10.6%, respectively. In addition, shares of PNC Financial have gained 10.3%.

What’s Next?

In the coming week, the focus will majorly be on the two-day FOMC meeting. Per the CME FedWatch tool, chances of another rate cut are as high as 93.5%. Thus, banks, which majorly benefit from higher rates, are likely to be adversely impacted.

Notably, some banks scheduled to report quarterly numbers in the next five trading days are Bank of Hawaii Corporation and TCF Financial Corporation on Oct 28, and UMB Financial Corporation on Oct 29. Hilltop Holdings Inc. and Cullen/Frost Bankers, Inc. are slated to announce results on Oct 31.

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Click to get this free report Fifth Third Bancorp (FITB) : Free Stock Analysis Report Bank of America Corporation (BAC) : Free Stock Analysis Report U.S. Bancorp (USB) : Free Stock Analysis Report Citigroup Inc. (C) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report Regions Financial Corporation (RF) : Free Stock Analysis Report Capital One Financial Corporation (COF) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research