Just the quick details of the earnings release for the three firms:
Citigroup reported net income of $4.3bn on revenues of $30bn, following a $6.7bn gain from the sale of Smith Barney, which closed on 1st of June. The firm’s revenus were up $12.4bn from last year of the same period. Without the one-off gain from the transaction, Citi would have reported a loss of $0.27 per share, still better than analyst expectations.
The result also improved the firms Tier 1 capital ratio from 11.9% in Q1 to 12.7% for Q2 and its TCE also grew by $9.1bn.
Reduced operating expenses also helped, as did higher total deposits. These positives are somewhat offset by higher credit costs.
Bank of America
Net income for the bank of $3.22bn, or 33 cents diluted EPS, was lower by 5.5% from a year ealier. Despite that, it still beat analysts’ expectations.
Some other earnings highlights:
Profit in global banking increased by 74% while the housing loans and insurance unit lost $725m mainly due to mortgage modification costs.
Unsurprisingly, earnings from trading yet again significantly boosted earnings, as it quadrupled during the period. Wealth and asset management earnings were down 24%.
As a big provider of credit cards, its card services unit took back the profits in made in 2008 after reporting a loss for the period. Provisions for credit losses, however, was still kept the same from Q1.
Still affected by its struggling financial arm, the firm reports earnings 47% lower than from lasy year, while revenues fell 17%. Net income came out at $2.67bn, translating to a $0.24 EPS, down from $5.07bn or $0.51. According to the release, it included a five cents share in restructuring and other charges. Revenue was at $39.08bn, affected by a 29% from GE Capital vs. its non-finance arms only 8%. Expectations stood at $0.23 and revenue of $42.16bn.
The conglomerate could only rely on its non-financial arm after GE Capital’s earnings saw a massive 80% drop.
CEO Jeff Immelt said:
“In a global economic environment that continues to remain challenging, GE delivered solid second-quarter business results. We are executing through the recession by aggressively controlling costs and driving working capital improvements and continuing to invest for future growth. At the same time, we are actively maintaining backlog, focusing on higher-margin services, and continuing to run our financial services business for safety and soundness. We continue to position GE to win in a reset economy.”
The entire Citi report HERE (PDF).
The entire BofA report HERE.
The entire GE report HERE.