Financial ETFs Down on Mixed Earnings

The financial sector, which accounts for around one-fifth of the S&P 500 Index, had a mixed Q4. Three out of six big U.S. banks were able to beat overall. Finance sector earnings are projected to decline 9.2% on 2.7% higher revenues in Q4, per Zacks Earnings Trends issued on Jan 18, 2023.Lets take a look at the big banks earnings which released lately.

Big Bank Earnings in Focus

Higher loan balance, rising rates and solid markets performance drive JPMorgans JPM fourth-quarter 2022 adjusted earnings of $3.56 per share, which surpassed the Zacks Consensus Estimate of $3.11. The results excluded gains from the sale of Visa B shares and net investment securities losses in the Corporate segment. Our estimate for earnings was $2.98 per share. Net revenues, as reported, were $34.5 billion, up 18% year over year. The top line beat the Zacks Consensus Estimate of $34 billion. Our estimate for the metric was $32.1 billion.

Citigroup Inc.s C fourth-quarter 2022 earnings per share (excluding divestiture-related impacts) of $1.10 have lagged the Zacks Consensus Estimate of $1.18. The figure declined 44.7% on a year-over-year basis. Our estimate for earnings was $1.09 per share. Revenues, net of interest expenses, moved up 6% year over year to $18 billion in the fourth quarter. The top line outpaced the Zacks Consensus Estimate of $17.91 billion.