- Wells Fargo posted US$6 billion profit as it released US$1.6 billion credit reserves.
- BlackRock’s assets under management soared to a record US$9.456 trillion in the second quarter.
- Wells Fargo stock returned 51% year to date, BlackRock stock gained around 29%.
Wells Fargo & Company (NYSE: WFC) stock rose around 3 percent, while and BlackRock, Inc. (NYSE: BLK) shares retreated 3 percent on Wednesday after the companies reported their second-quarter results.
Wells Fargo posted over US$6 billion in net income for the June quarter as it continued to release the credit reserve set aside last year. Investment management company BlackRock saw its net income increase as its assets under management rose to a record US$9.5 trillion.
On July 14, Wells Fargo shares gained 3.98 percent to end the trading at US$44.95. BlackRock stock closed at US$880, down 3.06 percent
Wells Fargo Q2 result
Wells Fargo reported a net income of US$6.04 billion, or US$1.38 per share in the June quarter, compared with the loss of US$3.84 billion, or US$1.01 per share in the year-ago quarter.
The California-based bank released US$1.6 billion in credit reserves during the three months period.
Total revenue declined to US$20.27 billion from US$18.29 billion in the second quarter of the previous year. The 11 percent decline in net interest income to US$8.80 billion was offset by a 37 percent growth in its noninterest income to US$11.47 billion.
Revenue increased 14 percent in its consumer banking and lending unit, while the commercial banking unit’s revenue fell 10 percent to US$2.11 billion.
Meanwhile, the corporate and investment banking segment saw the revenue decline by 18 percent to US$3.34 billion. The revenue in its wealth and investment management unit was up 10 percent to US$3.54 billion.
Wells Fargo has a market capitalization of US$185.92 billion. Its stock returned 51percent year to date.
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BlackRock Q2 result
BlackRock reported a 14 percent year-over-year growth in its second-quarter net income to US$1.38 billion, or US$8.92 per share. Adjusted net income rose 28 percent to US$1.55 billion, or US$10.03, from US$1.21 billion, or US$7.85 in the same quarter previous year.
Revenue surged 32 percent during the quarter to US$4.82 billion from US$3.65 billion in the year-ago quarter. The company said its topline growth reflects significant market gains and organic growth, higher performance fees and 14 percent growth in technology services revenue.
BlackRock’s asset under management increased 30 percent year over year to record US$9.456 trillion in the three months period. Net inflows totaled US$81 billion.
BlackRock’s market capitalization totals US$134.27 billion. The stock gained 23.85 percent this year.
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