tl;dr
The largest US banks are projected to announce a decrease in third-quarter earnings, with JPMorgan Chase and Wells Fargo expected to report an approximately 8% and 14% drop in earnings per share, respectively. Bank of America, Citigroup, and Goldman Sachs are also anticipated to reveal declines of a...
The largest US banks are projected to announce a decrease in third-quarter earnings, with JPMorgan Chase and Wells Fargo expected to report an approximately 8% and 14% drop in earnings per share, respectively. Bank of America, Citigroup, and Goldman Sachs are also anticipated to reveal declines of around 14%, 20%, and 35% in earnings per share, attributed to factors such as rising deposit costs, weak loan demand, and shrinking net interest income.
Despite these challenges, strong revenues are expected from other banking divisions such as investment banking and trading. Consumer loan delinquencies are down, and banks have bolstered reserves to cover potential office loan losses. Analysts predict a 7% increase in investment banking revenues on average for the industry, while a decline in trading revenue is anticipated due to a seasonal drop in volume.
The biggest banks in the US are preparing to report a third quarter marked by shrinking margins and declining profits, according to a new report. JPMorgan Chase and Wells Fargo release their Q3 earnings on Friday. JPMorgan is expected to reveal a nearly 8% drop in earnings per share while Wells Fargo will likely report a nearly 14% drop in earnings per share, reports Reuters, citing data compiled by the London Stock Exchange Group (LSEG). Next week, Bank of America is expected to report an approximately 14% drop in earnings per share, Citigroup is expected to report a 20% drop, and Goldman Sachs is expected to report a 35% drop.
The across the board decline is due to a combination of rising deposit costs, weak loan demand and shrinking net interest income (NII). Although banks are feeling pressure from decreasing margins, they’re expected to generate strong revenues from other banking divisions, such as investment banking and trading. Analysts at Oppenheimer say consumer loan delinquencies are down and notes banks have also shored up significant reserves to cover potential office loan losses. Oppenheimer also expects the industry to post a 7% rise in investment banking revenues for all banks on average, and banks may report a decline in trading revenue amid a seasonal drop in volume.
More about General Dynamics Corporation
General Dynamics Corporation Summary General Dynamics Corporation
General Dynamics Corporation (GD) is an American aerospace and defense corporation. It is headquartered in Reston, Fairfax County, Virginia.
Industry and Sector
Industry: Manufacturing, Ship & Boat Building & Repairing
Key Financial Metrics
Market Cap: $81.58 billion
PE Ratio: 23.18
EPS: $5.48
Dividend Yield: 12.81
52-Week High: $164.48
52-Week Low: $78.90
Revenue: $44.946 billion
Net Income: $3.24 billion
Debt to Equity: 0.207
Current Ratio: 0.18