Citigroup Inc, Wells Fargo & Co Edge Out Earnings Estimates

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Citigroup and Wells Fargo were two of at least four big financial firms that released their earnings reports before opening bell this morning. Citigroup reported earnings of $1.06 per share and $18.5 billion in revenue. Analysts had been expecting earnings of $1.05 per share and $17.87 billion in revenue.

Wells Fargo reported earnings of $1.03 per share and $21.6 billion. Analysts had been looking for earnings of $1.02 per share and $21.8 billion in revenue. In the fourth quarter of 2015, the firm reported earnings of $1.02 per share and $21.4 billion in revenue.

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Citigroup’s earnings surge

Including CVA/ DVA1, Citigroup’s earnings were $1.02 per share, compared to the previous year’s 6 cents per share in earnings. Citigroup’s revenues rose 4% year over year to $18.6 billion, while Citicorp’s revenues declined 2% to $15.7 billion. The Global Consumer Banking segment recorded a 9% decline in revenues to $8.2 billion, and the Institutional Clients Group’s revenue rose 4% to $7.4 billion. Citi Holdings revenue climbed 61% year over year to $2.9 billion.

The bank’s common equity tier 1 capital ratio was 12%, while its supplementary leverage ratio was 7.1%. Book value per share was $69.46, while tangible book value per share was $60.61.

Citigroup stock declined by as much as 2.75% to $44.13 per share in premarket trading this morning.

Wells Fargo sees growth in most segments

Wells Fargo’s total average loans climbed 7% to $912.3 billion, while its total average deposits increased 6% to $1.2 trillion. Return on assets was 1.27%, and return on equity was 12.23%. Net interest income climbed to $11.6 billion on the back of earning asset growth. Non-interest income declined from $10.4 billion the previous year to $10 billion in the fourth quarter of 2015. Wells Fargo had $247.6 billion in investment securities at the end of December.

The firm’s Community Banking unit saw a decline of 7% in net income to $3.3 billion, while the Wholesale Banking division’s net income climbed 9% to $2.1 billion. The Wealth and Investment Management business saw a 2% decline in net income to $595 million.

Wells Fargo’s common equity tier 1 ratio was 10.7%, fully phased-in.

The firm’s stock slipped by as much as 2.21% to $49.48 per share in premarket trading this morning.

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