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 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.