Scotiabank - Global Banking and Markets’ Post

UNDERSTANDING EARNINGS RELEASES Tonight we break down the important numbers of your favorite listed companies and point out interesting stories from different banks worth noting. Register here to join: https://lnkd.in/diKFFYBk

First quarter earnings season kicks off this week with several big banks reporting this Friday, including sector bellwether JPMorgan Chase (JPM). This quarter will seem quite similar to the fourth in terms of growth and drivers, with mega-cap technology leading the way. But importantly, the point when the “493” will start contributing to overall profits is drawing closer (the 493 refers to the S&P 500 minus the seven mega-cap technology stocks). Here we preview first quarter earnings season, which will benefit from an improving economic environment and continued strength in technology. https://lnkd.in/gnsiJUgD #MarketUpdates #FinancialMarkets #The493 #Earnings #Economy #SanJuanCapistrano #REVELPrivateWealth #REVEL

2023 was characterized by rising interest rates that led to significant differences in revenue growth, and restructuring which reshaped the competitive landscape. Corporate and institutional banking returns overall saw a slight deterioration (-2 pp) as modest revenue growth (+3 pp) was insufficient to compensate for a growing cost base (+4 pp). With uncertain times ahead, corporate and institutional banks must carefully consider participation choices, anchored in a clear client strategy and supported by a right-sized cost base. To learn more about our 2023 earnings review please reach out to me, Martin Sommer, Ronan O'Kelly, Mariya Rosberg, and Dylan Walsh.

Strong banking and strong economies go hand in hand. This week our a.i. stock spotlight is CITI ($C). They are in a major restructuring and facing major headwinds in their business and in the economy. Check out the VantagePoint A.I. Stock of the Week: https://lnkd.in/erBMGS38

📈🚀 Dive into the world of top performers! Discover the best-performing stocks in Nifty Financial Services that are leading the charge in 2024. Whether you're an investor or just curious, these insights could shape your financial future. 💰 https://lnkd.in/deZmbbck #StockMarket #NiftyFinancialServices #TopPerformers #InvestSmart #FinancialGrowth

🚀Get ready for the earnings season! 🎢 #EarningsSeason is back with a bang, and the big banks are leading the charge: 🏦Wells Fargo: Anticipating a jump in annual earnings per share to $1.1! Dive into the details! 💳Citigroup: Turning around with annual earnings per share forecasted to rise to $1.39! Explore their financial information. 💰JPMorgan: Forecasting a surge to $4.24 in annual earnings per share! Discover why they're a powerhouse in the financial world. Learn more and explore on Fortrade! 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money #StockMarket #Investing #EarningsSeason #BigBanks #FinancialGrowth #StockMarketNews #WellsFargo #Citigroup #JPMorgan #Fortrade #FinancialServices #onlinetrading

How does Desjardins’ dividends work? A bank rewards its shareholders by paying out a portion of its profits each quarter in the form of a dividend. For its part, Desjardins rewards its members with a dividend (a rarity on a global scale). 👉 Two types of dividends: 1) Product dividend, capped at $50. The member must hold at least one eligible product in four product categories. 2) Volume dividend, representing a personalized amount based on the volume of business carried out in the same four categories. Desjardins paid out $412 million in dividends this year to its 7.7 million members, has total assets of $422.9 billion and surpluses of nearly $2.3 billion. Read Stéphane Desjardins' article in Le Journal De Montreal to learn more: https://lnkd.in/erMNspkH

Key highlights from Big Bank's Earning season: Investment Banking Rebounds: Revenue increases. Signs of a capital markets and M&A recovery are emerging, though full momentum is contingent on interest rates decreasing. Asset & Wealth Management Gains: Buoyed by stock market highs, banks saw growth in their asset-and-wealth-management businesses. These sectors provide steady fee revenue, offsetting lulls in dealmaking and trading. Pressure on Lower-Income Consumers: Despite a strong job market, higher inflation and interest rates are straining budgets, particularly for lower-income households. Banks noted increased credit card balances and delinquencies, with some setting aside funds for potential loan losses. While the outlook is positive, economic or geopolitical shifts could disrupt this progress. Deal season is underway in many industries, including and beyond AI. Temperley BCI #dealmaking #M&A

Morgan Stanley on Wednesday topped analysts’ estimates for third-quarter profit as each of its three main divisions generated more revenue than expected. Here’s what the company reported: Earnings:$1.88 a share vs $1.58 LSEG estimate Revenue: $15.38 billion vs. $14.41 billion estimate The bank said profit rose 32% to $3.2 billion, or $1.88 per share, and revenue jumped 16% to $15.38 billion. Morgan Stanley had several tail winds in its favor, starting with buoyant markets that helped its massive wealth management business, a rebound in investment banking after a dismal 2023, and strong trading activity. The Federal Reserve began taking down rates in the quarter, which should encourage more of the financing and merger activity that Wall Street firms capitalize on. “The firm reported a strong third quarter in a constructive environment across our global footprint,” Morgan Stanley CEO Ted Pick said in the release. Shares of the bank rose 7.5% in early trading. The bank’s wealth management division saw revenue jump 14% from a year earlier to $7.27 billion, exceeding the StreetAccount estimate by nearly $400 million. Equity trading revenue rose 21% to $3.05 billion, compared with the $2.77 billion estimate, while fixed income revenue edged 3% higher to $2 billion, also higher than the $1.85 billion estimate. Investment banking revenue surged 56% from a year earlier to $1.46 billion, exceeding the $1.36 billion estimate. Investment management, the firm’s smallest division, also exceeded expectations, posting a 9% increase in revenue to $1.46 billion, modestly higher than the $1.42 billion estimate. Morgan Stanley’s Wall Street rivals also posted better-than-expected Wall Street revenue. JPMorgan Chase, Goldman Sachs and Citigroup topped estimates on strong revenue from trading and investment banking. https://lnkd.in/eqfdTjxn

2023 was characterized by rising interest rates that led to significant differences in revenue growth, and restructuring which reshaped the competitive landscape. Corporate and institutional banking returns overall saw a slight deterioration (-2 pp) as modest revenue growth (+3 pp) was insufficient to compensate for a growing cost base (+4 pp). With uncertain times ahead, corporate and institutional banks must carefully consider participation choices, anchored in a clear client strategy and supported by a right-sized cost base. To learn more about our 2023 earnings review please reach out to Julian Gorski, Martin Sommer, Ronan O'Kelly, Mariya Rosberg, and Dylan Walsh.