US big bank earnings Highlights: Dow rises 200 points after strong bank earnings

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US big bank earnings LIVE update: Consumer sentiment slips, inflation outlook spikes, survey shows

Consumer sentiment slumped in October while inflation expectations spiked, according to the University of Michigan’s closely watched survey, reported CNBC.

The survey posted a headline reading of 63, down from 68.1 in September and below the Dow Jones estimate for 67.4, a preliminary reading released Friday showed. The current conditions index also moved down, to 66.7 from 71.4.

US big bank earnings LIVE update: Dow rises 200 points

The Dow Jones Industrial Average climbed 248 points, or 0.7%. The S&P 500 gained 0.4%, and the Nasdaq Composite advanced 0.1%, reported CNBC.

US big bank earnings LIVE update: Stocks rise after strong bank earnings

Shares of JPMorgan Chase gained 1.8%. Wells Fargo rose 3.3% in the premarket. Shares of Citigroup also jumped 3% after posting a beat on revenue.

As major bank stocks rose, U.S. Treasury yields declined. The yield on the 10-year Treasury was down by over 11 basis points at 4.598%. The 2-year Treasury yield was nearly 5 basis points lower at 5.02%. Yields and prices have an inverted relationship, reported CNBC.

US big bank earnings LIVE update: Wells Fargo Q3 Results

Wells Fargo added nearly 2% after third-quarter earnings and revenue topped expectations.

US big bank earnings LIVE update: Dow futures rise 100 points after strong bank earnings, yields retreat

S&P 500 futures edged 0.2% higher, while Dow Jones Industrial Average futures gained 0.3%. Nasdaq-100 futures added less than 0.1%, reported CNBC.

US big bank earnings LIVE update: Citi CEO Jane Fraser on Q3 results

"Markets was up 10% driven by strength in Fixed Income. Banking activity played to our mix and grew 17%, bolstered by a rebound in debt issuance and some signs of life in the equity capital markets. US Personal Banking also had double-digit revenue growth while a continued deceleration in spending indicates an increasingly cautious consumer."

US big bank earnings LIVE update: Citi CEO Jane Fraser on Q3 results

"Despite the headwinds, our five core, interconnected businesses each posted revenue growth resulting in overall growth of 9%. Services, our fastest growing business, grew by 13% with Treasury and Trade Solutions having its best quarter in a decade."

US big bank earnings LIVE update: Citigroup end-of-period deposits 

Citigroup's end-of-period deposits were approximately $1.3 trillion at quarter end, down (3)% versus the prior year period. The decline in deposits was largely due to a reduction in Services, reflecting quantitative tightening, a shift of deposits to higher-yielding investments in Global Wealth Management and a reduction of institutional certificates of deposit in Corporate/Other. 

US big bank earnings LIVE updates: Citigroup stocks rises as quarterly revenue tops $20 billion

Shares of Citigroup rose more than 2% in premarket trading after the bank’s third-quarter report showed stronger-than-expected revenue, reported CNBC.

US big bank earnings LIVE update: Citigroup Total Allowance

Citigroup's total allowance for credit losses on loans was approximately $17.6 billion at quarter end, compared to $16.3 billion at the end of the prior-year period, with a reserve-to-funded loans ratio of 2.68%, compared to 2.54% at the end of the prior-year period. Total non-accrual loans increased 14% from the prior-year period to $3.3 billion. Corporate non-accrual loans increased 33% to $2.0 billion. Consumer non-accrual loans decreased (7)% to $1.3 billion. 

US big bank earnings LIVE update: Citigroup Net Income

Citigroup net income of $3.5 billion in the third quarter of 2023 increased 2% from the prior-year period, primarily driven by the higher revenues, partially offset by the higher expenses and the higher cost of credit. Citigroup's effective tax rate increased to approximately 25% in the current quarter versus 20% in the third quarter of 2022, primarily driven by a different geographic mix of pre-tax earnings in the current quarter.

US big bank earnings LIVE update: Citigroup Cost of Credit 

Citigroup cost of credit was approximately $1.8 billion in the third quarter of 2023, compared to $1.4 billion in the prior-year period, primarily driven by the continued normalization in net credit losses and volume growth in cards in PBWM. A net build in the allowance for credit losses (ACL) for loans and unfunded commitments of $125 million was primarily driven by Branded Cards and Retail Services, largely related to growth in card balances.

US big bank earnings LIVE update: Citigroup operating expenses 

Citigroup operating expenses of $13.5 billion in the third quarter of 2023 increased 6%, largely driven by investments in risk and controls, severance and the impact of inflation. The expense increase was partially offset by productivity savings and expense reductions from the closed exits and wind-downs.

US big bank earnings LIVE update: Citigroup Revenues Q3

Citigroup reported revenues of $20.1 billion in the third quarter 2023 increased 9%. The higher revenues reflected strength across Services, US Personal Banking and Markets, as well as growth in Banking, which was offset by the revenue reduction from the closed exits and wind-downs.