Bank Stocks News: What’s Happening With JPM, BLK, WFC, C, GS Stocks Today?

Today, banking stocks like JP Morgan (NYSE:JPM), black rock (NYSE:noir), Wells Fargo (NYSE:WFC), Citigroup (NYSE:VS) and Goldman Sachs (NYSE:GS) are in the spotlight. That’s because two of those companies – JPMorgan and BlackRock – announced first-quarter earnings this morning. Now, reports from those two names set the tone for the rest of the banking stocks.

Source: shutterstock.com/CC7

With that in mind, let’s get to the details. Here’s what investors need to know about recent earnings reports.

Banking Stock News: JPM Shares and Q1 Earnings

For the period, JPMorgan reported first-quarter revenue of $31.59 billion, beating consensus analysts’ expectations of $30.86 billion. However, earnings hit $8.28 billion, a massive 42% year-over-year (YOY) decline. The investment bank attributed the drop in profits to falling investment banking revenue, Russia’s continued invasion of Ukraine and “rising bad debt costs”.

Specifically, investment banking revenue fell 28% year-on-year for the period, while investment banking fees fell 31% year-on-year due to a “lower activity of subscription of shares and debts”. Meanwhile, JPM reported a loss of $524 million due to markdowns and wide spreads also caused by the invasion of Russia. JPMorgan also increased its credit reserves by $902 million in the quarter, to guard against potential loan losses. In the report, CEO Jamie Dimon issued a grim warning about the state of the economy:

“We remain optimistic about the economy, at least in the near term – consumer and business balance sheets as well as consumer spending remain at healthy levels – but we foresee significant geopolitical and economic challenges ahead due to high inflation, supply chain issues and the war in Ukraine.”

Currently, JPM shares are down about 3% on the day.

BLK stock and first quarter results

This morning, BlackRock also reported earnings. For the period, the bank posted revenue of $4.7 billion in the first quarter, up 7% year-on-year and meeting analysts’ expectations. Additionally, adjusted earnings per share (EPS) was $9.52. That beat expectations of $8.70 per share. BlackRock is known for managing exchange-traded funds (ETFs) and the company disclosed $56 billion in inflows during the quarter. CEO Larry Fink also weighed in on the company’s outlook:

“As the world continues to face geopolitical and economic uncertainty, our investments over the years to build BlackRock’s all-weather platform positions us well to advise our clients and help them pursue their long-term financial goals. “

BLK shares are down less than one percent at the time of writing.

When will the Wells Fargo, Citigroup, Goldman Sachs report?

Looking ahead, Wells Fargo, Goldman Sachs and Citigroup have all confirmed that they will release their first quarter results tomorrow morning, April 14. Tomorrow will likely be a volatile day for bank stocks when these first quarter corporate performances are released.

At the date of publication, Eddie Pan held (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.