Barclays, Lloyds, NatWest, HSBC shares rise as US bank earnings jump

July 19, 2023 06:44 AM AEST | By Invezz

Barclays, Lloyds, NatWest, HSBC shares rise as US bank earnings jump — Image source: Invezz

US bank earnings season

American banking giants have published strong financial results in the past few days. On Friday, JP Morgan, the biggest banking group in the world, said that its revenue jumped by 34.5% in the second quarter to $41.3 billion. As I wrote here, the company’s net income rose to over $13.3 billion.

Wells Fargo, another American bank, also published results that were better than estimates. Its net interest income rose by 29% while its revenue jumped by 20.6% to over $20.53 billion.

Bank of America’s revenue rose by 2.9% to $25.2 billion while its net interest income rose by 14% to $14.2 billion. Other American banks like Morgan Stanley and Charles Schwab published strong results.

As a result, most American bank stocks jumped sharply this week as investors anticipated more returns in the next two quarters. The closely watched Invesco KBW Bank ETF rose by more than 3% on Tuesday.

Invesco KBW ETF chart

UK bank earnings ahead

More American banks will publish their results later this week. Goldman Sachs, US Bancorp, and M&T Bank will release their results on Wednesday. Analysts will focus on the performamce of the embattled Goldman Sachs. The company’s consumer business and investment banking business have struggled lately.

UK banks are yet to publish their financial results. Historically, these companies tend to react to the performance of their American counterparts. In most periods, UK bank stocks retreat when American companies publish weak results.

It is worth noting that American and UK stocks are significantly different. Companies like Bank of America, Morgan Stanley, and JP Morgan are more diversified in areas like consumer, investment banking, and wealth management. UK banks, on the other hand, focus mostly on retail and commercial banking.

These companies will publish their results next week and in early August. Lloyds Bank will deliver its half-year results on July 26th while Barclays will publish on the 27th. Natwest’s results will come on July 28th while HSBC’s will release on August 1st.

The post Barclays, Lloyds, NatWest, HSBC shares rise as US bank earnings jump appeared first on Invezz.

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