Big Three Miss – A First Since 2011

For the first time since the fourth quarter of 2011, the Big three U.S. banks – Bank of America, Citigroup and JP Morgan Chase – missed consensus earnings estimates.

Bank of America reported actual EPS of $0.25 compared to the mean estimate of $0.32; Citigroup reported EPS of $0.06 whereas the average estimate was $0.10; and JP Morgan Chase reported EPS of $1.19, compared to the mean estimate of $1.31. The results were also below last year’s.

Citigroup’s revenue remained unchanged at $17.8 billion from Q4 2013 but the EPS dropped from $0.77. Citi also announced a dividend on $0.01 per share with an ex-date of February 2, 2015 and payable date of February 27, 2015. Its dividend yield is a paltry 0.08%

Bank of America’s EPS declined from $0.29 reported in Q4 2013. Its revenue also declined to $19.0 billion from $21.7 billion in Q4 2013. Earlier in the month, it had announced the preferred dividends and it usually declares common dividends after the earnings announcement. The last quarter’s DPS was $0.05 giving it a dividend yield of 1.30%.

JP Morgan Chase reported earnings of $4.9 billion on revenue of $23.6 billion with an EPS of $1.19. These numbers were lower from Q4 2013, when the bank reported earnings of $5.3 billion on revenue of $24.1 billion and EPS of $1.30. JPM also announced preferred dividend. On December, JP Morgan had announced common dividends of $0.40 with ex-date of January 6, 2015 and payable date of January 31, 2015. Its dividend yield is 2.86%.

The charts of these banks are not looking too promising for the near future. All three are developing some sort of double-top pattern and are approaching significant support levels. The chart-pattern for JP Morgan Chase is marginally better looking though all of them are faring worse than the Financial Sector SPDR, XLF.


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Feature Image courtesy of jesadaphorn at

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