Analysts hinted that financial giants JP Morgan Chase and Co. (JPM) and Wells Fargo & Co (WFC) could outpace earnings expectations this quarter. They did so, and then some, exceeding all but the most bullish projections.
On July 12 JP Morgan, announced that their earnings per share had jumped 32 percent and revenue had climbed from $22.9 billion in Q2 2012 to $26 billion in 2013. CEO Jamie Dimond attributed the company’s success to the overall strengthening of the American economy, citing a recovery from the 2008 housing debacle and solid job numbers. On the micro level, JP Morgan added additional revenue from a 10 percent increase in deposits and 12 percent gain in mortgages.
JP Morgan also announced they’d be upping their dividends on the strong numbers, and raised quarterly dividend payouts from 30 cents a share to 38.
While their numbers weren’t as dramatically upbeat, Wells Fargo also beat analyst expectations with their Q2 earnings report. They posted income of $5.5 billion that quarter, 19 percent better than their numbers a year ago. That was good enough for earnings of 98 cents a share, edging out general analyst consensus that expected earnings per share in the neighborhood of 92 cents.
Revenue for Wells Fargo stayed consistent with last year – $21.4 this year compared to $21.3 billion. But the largest mortgage originator in the country didn’t have to set aside nearly as much cash this year to cover bad loans left over from the housing crisis.
Like JP Morgan, Wells Fargo benefited from increased community banking. Their revenues from mortgages and equity loans were $3.2 billion, up from $2.5 billion a year ago.
JP Morgan’s stock traded high on the good news, and is up .33 percent to $55.32 a share. Wells Fargo also traded well, and is up 2.17 percent to hit $42.80 a share.
