JPMorgan Chase & Co. and Wells Fargo & Company posted their second-quarter earnings results on Friday, with largely positive results at JPMorgan Chase and less positive news from Wells Fargo.
JPMorgan Chase reported $ 8.3 billion in net income, of $ 7.0 billion a year ago, but down from $ 8.7 billion in the first quarter of this year. The bank's net income for the quarter was $ 28.4 billion, an increase of six percent in the year, with net interest income of $ 13.6 billion, an increase of 9 percent, while the Net income without interest was $ 14.7 billion, down 4 percent.
According to the bank's report, the volume of mortgage origin totaled $ 23.7 billion in the second quarter, compared to $ 20.0 billion in the first quarter and $ 26.2 billion. in the second quarter of last year
JPMorgan Chase CEO Jamie Dimon reflected positively on the economy, in a statement that said: "The healthy US consumer drove double-digit growth in client investment badets, sales of cards and merchant processing volumes. "
However, the bank's CFO, Marianne Lake, said during the release of the gains that there is more competition in the mortgage and commercial real estate markets.
Earnings rel ease for Wells Fargo was much less positive, which caused a negative reaction in the market.
Wells Fargo recorded $ 5.2 billion in earnings in the second quarter, down from $ 5.9 billion a year ago and slightly above $ 5.1 billion in the first quarter of the year. Revenue was reported at $ 21.6 billion, compared to $ 22.2 billion a year ago. Net interest income of Wells Fargo was $ 12,500 million, an increase of 1 percent; and the net income without interest was $ 9,000 million, 8%.
Wells Fargo recorded decreases in auto loans, its mortgage portfolio of lower encumbrances and revolving credits and in installments.
In general, Wells Fargo reported a drop of $ 3 billion loan segment, with declines in lower auto loans, legacy consumer real estate and commercial real estate loans. The growth of commercial and industrial loans was counteracted by the fall of commercial real estate loans.
Consumer loans dropped $ 2,800 million "as the growth of non-conforming mortgage loans and credit card loans was more than offset by decreases in real estate auto loans due to runoff, sales and credit discipline" , informed Wells Fargo.
The first family mortgages from one to four were a bright spot for the bank with an increase of $ 343 million. The bank also reported $ 1.3 billion in sales of PCI mortgage loans, Pick-a-Pay.
While CEO Tim Sloan said the bank "continued to transform Wells Fargo into a better and stronger company" during the second quarter, results were not met with optimism.
Octavio Marenzi, CEO of Opimas, a capital markets management consultancy told CNBC: "The broad-based weakness of Wells Fargo's results is worrisome, with many indicators such as deposits, commercial loans and consumer loans. down. "He noted that previous scandals, such as the revelation two years ago that the employees of the retail bank were creating false accounts under the names of customers, are" taking its toll ".
"Compared to the excellent results of JPMorgan today, Wells Fargo looks pretty hapless, unable to do well," he continued.
Wells Fargo shares fell 1.2 percent after earnings were announced on Friday.