Newsquawk Analysis: Q2 earnings season begins with mixed results as JPM, WFC, and BLK all settle lower, for varying reasons

Analysis details (14:15)

Summary: Earnings season began on Tuesday morning, with numbers from the likes of Blackrock (BLK), BNY Mellon (BK), JPMorgan (JPM), Wells Fargo (WFC) and Citi (C). BLK have been very choppy post-earnings, but ultimately weighed on by a revenue miss and long-term inflows significantly underwhelming, despite AUM hitting a record high. BK are supported by EPS, revenue, and NII all beating. Akin to BLK, JPM have been choppy and are now lower as NII was light, and sees adj. expenses rising Y/Y. Note, EPS, rev. beat with a strong breakdown and impressive FY25 NII outlook. WFC was hit by NII and trimming guidance. C impressed with EPS, revenue, and solid NII.

Profit: The start of earnings season has seen banking names largely beating expectations, with bottom line beats strong across the board with BLK, BK, JPM, WFC, and C all topping, although financial behemoth JPM saw their profit fall Y/Y as the prior-year saw accounting gain skews.

Revenue: The top line was more mixed with BLK missing, although C, BK, JPM, and WFC did all surpass Wall St. expectations.

NII: Continue to highlight the mixed picture across the big banks, BK beat and rose 17% (exp. 11.8%), while JPM and WFC fell short. C beat on the number, and sees FY25 NII ex-markets +4%. Ahead, JPM sees FY25 NII at around 95.5bln (exp. 94.57bln, prev. 94.5bln), while WFC sees FY25 NII roughly in line with 2024.

Expenses: JPM sees FY25 adj. expenses ~USD 4bln higher Y/Y, meanwhile WFC see FY non-interest expense at USD 54.2bln, a slight rise Y/Y. Citi affirmed FY expenses, to be marginally down Y/Y.

Loan loss provisions: On the potential issue of credit quality, the earnings have quelled some of those fears with JPM and WFC both printing loan loss provisions someway beneath expectations. C’s total allowance for credit losses rose to 23.7bln, vs. 21.8bln Y/Y

Looking ahead: PNC, BAC, GS, and MS report metrics on Wednesday.

Pre-market moves:

• 
  BLK -1.7%


• 
  JPM -0.4%


• 
  WFC -1.1%


• 
  BK +1.3%


• 
  C +0.4%.

15 Jul 2025 - 14:15- EquitiesResearch Sheet- Source: Newsquawk