Wells Fargo, BlackRock Report Fourth Quarter Earnings

Wells Fargo and BlackRock released their latest earnings reports before opening bell this morning. Wells Fargo posted earnings of 96 cents per share on $21.6 billion in revenue. Analysts had been expecting earnings of $1 per share and $22.45 billion in revenue. The bank’s revenue remained flat year over year, while earnings per share declined from the year-ago quarter’s $1.

BlackRock reported earnings of $5.13 per share or $5.14 per share as adjusted on $2.89 billion in revenue. Analysts had been looking for $5.02 per share in earnings and $2.9 billion in revenue. In the year-ago quarter, the firm reported $2.86 billion in revenue, $4.75 per share in adjusted earnings and $5.11 per share in diluted earnings.

Wells Fargo

Wells Fargo posts solid growth

Wells Fargo’s total average loans grew 6% or $51.9 billion to reach $964.1 billion, while total average deposits increased $67.3 billion or 6% to $1.3 trillion. Investment securities grew $17.1 billion quarter over quarter to $407.9 billion amid $44 billion in purchases, most of which were mortgage-backed securities backed by federal agencies.

The Community Banking segment’s revenue declined from $12.3 billion to $11.66 billion year over year, while Wholesale Banking revenue grew from $6.6 billion last year to $7.2 billion this year. Wealth and Investment Management revenue amounted to $4.1 billion, compared to $3.9 billion in the same quarter the year previously.

Shares of Wells Fargo declined by as much as 1.01% to $53.95 per share in premarket trades this morning.

BlackRock pulls in strong inflows

BlackRock’s fourth quarter net inflows reached $98 billion, with $18 billion coming from cash management as iShares and Institutional led the way. The firm had $5.15 trillion in assets under management in the fourth quarter.

Retail net outflows were $2.44 billion, while Active inflows were $6.3 billion and Index inflows were $34.6 billion, bringing the total long-term flows to $87.76 billion. Cash management inflows were $17.7 billion, while Advisory outflows were $7.4 billion.

BlackRock shares edged upward by as much as 0.72% to $381 in premarket trading this morning.