- Mortgage revenue increased to $2.3 billion during the second quarter, from $2.0 billion during the first quarter, and $1.1 billion in the second quarter of 2011.
- Total noninterest expense declined to $15.0 billion in the second quarter, from $18.3 billion the previous quarter, and $16.8 billion a year earlier, mainly reflecting a decline in litigation expenses, but also a reduction in compensation expenses to $7.4 billion, from $8.6 billion in the first quarter (the annual seasonal spike for bonuses), and $7.6 billion in the second quarter of 2011.
- Period-end commercial banking loans grew to $120.5 billion as of June 30, from $115.8 billion the previous quarter, and $102.7 billion a year earlier.
The shares trade for seven times the consensus 2013 EPS estimate of $5.28. The consensus 2012 EPS estimate is $4.19. Stifel Nicolaus analyst Christopher Mutascio rates JPMorgan a "Hold," and said on Friday that after backing out the one-time items during a quarter with "significant noise," he "could arrive at a core quarterly EPS run-rate in the $1.35 range." The analyst said that "areas in which the company clearly beat our expectations were: 1) mortgage banking income came in at $2.27 billion versus our estimate of just $1.61 billion, and 2) operating expense were $14.97 billion versus our estimate of $15.55 billion," combining "for a $1 billion beat, or $0.17 per share, relative to our expectations." Mutascio's areas of concern include "1) the company's net interest income came in at $11.15 billion, which is down from the 1Q12 level of $11.67 billion and lower than our $11.84 billion estimate - with the net interest margin falling to 2.47% from 2.61% in 1Q12, and 2) the company's estimated Basel III tier 1 common capital ratio was 7.9%, down from the originally reported 1Q12 level of 8.4% and the restated 1Q12 level of 8.2%." Interested in more on JPMorgan Chase? See TheStreet Ratings' report card for this stock.
The shares trade for nine times the consensus 2013 EPS estimate of $3.65. The consensus 2012 EPS estimate is $3.28. Based on a quarterly dividend of 22 cents, Wells Fargo's shares have a dividend yield of 2.60%. Bank of America Merrill Lynch analyst Erika Penala rates Wells Fargo a "Buy," with a price objective of $36, and said on Friday that for the second quarter, "the biggest surprise was certainly the resilience of WFC's lending margin, which at 3.91% was flat sequentially," and that "as a result, net interest income of $11.2bn beat our $10.9bn estimate." The analyst also said that Wells Fargo's $1.8 billion second-quarter provision for loan losses "was also lighter than expected ($1.8bn vs $2.0bn est.) as credit trends continued to improve." Penala added that "while it is clear that WFC continues to hit on most cylinders, bears may pick at 'non-recurring' levels of support to the margin, as well as the increased guidance on quarterly expenses," and that she "would see any weakness today as an enhanced Buying opportunity, as we don't think consensus EPS are in danger of material revisions down." Interested in more on Wells Fargo? See TheStreet Ratings' report card for this stock.
The shares trade for just over half their reported March 31 tangible book value of $50.90, and six times the consensus 2013 EPS estimate of $4.54. The consensus EPS estimate for all of 2012 is $3.93. Orenbuch is out in front of the consensus, estimating that Citigroup will earn $4.20 a share for all of 2012, followed by 2013 EPS of five dollars. Interested in more on Citigroup? See TheStreet Ratings' report card for this stock.
The shares trade for 0.6 times their reported March 31 tangible book value of $12.87, and for eight times the consensus 2013 EPS estimate of 96 cents. The consensus 2012 EPS estimate is 57 cents. Interested in more on Bank of America? See TheStreet Ratings' report card for this stock.
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