This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Fifth Third, JPMorgan Lead Big Bank Revenue Winners: KBW

Stocks in this article: BAC JPM WFC RF FITB HBAN USB

The nation's largest banks all saw a weak trading revenue trend in the third quarter, but most were hit even harder by the expected decline in mortgage revenue, as rising long-term rates helped slow the wave of refinancing applications.

The mortgage trend is clear and the big banks can't avoid it.

According to the Mortgage Bankers Association's most recent estimate, third-quarter mortgage loan refinance activity in the United States declined to $189 billion from $342 billion in the third quarter of 2012. The MBA forecasts that total U.S. mortgage production will decline from $1.750 trillion in 2012 to $1.605 trillion in 2013, with a much more significant decline to $1,091 trillion in 2014.

"We are not suggesting that investors should ignore the material drop in mortgage banking income," Mutascio wrote. "However, by backing it out, we can get a sense of how the revenue per share growth is across all other business lines for our banks. It might provide us with some insight as to who will generate greater revenue per share growth when mortgage banking fully normalizes."

According to KBW's data, if mortgage revenue were stripped out, Fifth Third would again be the winner among large-cap banks, with third-quarter revenue of $1.4 billion, increasing from $1.371 billion in the third quarter of 2012. Core revenue, excluding mortgages, rose 8.6% to $1.58 a share in the third quarter from $1.45 a share a year earlier.

JPMorgan Chase (JPM) ranks second, with revenue, excluding myriad one-time items and mortgage revenue (which was down 65% to $841 million), increasing to $22.431 billion in the third quarter, from $21.623 billion a year earlier. JPMorgan's third-quarter average share count declined to 3.767 billion from 3.821 billion a year earlier. So adjusted revenue came to $5.95 a share in the third quarter, up 5.2% from the third quarter of 2012.

2 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs