Financial Sector Rises After Big Banks Report Strong Quarterly Earnings: Latest Reports on PNC Financial and Wells Fargo

NEW YORK, NY / ACCESSWIRE / January 17,
2017 / The Financial Sector has been amongst the top performers since Election Day as the general consensus has been a Donald Trump presidency would mean looser financial regulations and higher inflation. The Financial Select Sector SPDR Fund has gained 17.7 percent since November 8th, 2016.

“The big question now is whether this move is overdone. Will more interest-rate increases materialize in 2017, boosting banks’ profitability, or will we see rising rates fizzle like in 2016?” said Christian Magoon, Chief Executive and founder at Amplify ETFs. “I lean toward fizzle now and think XLF and financials have gotten ahead of themselves.”

On Friday, Bank of America JPMorgan Chase & Co and Wells Fargo & Co. kicked off earnings season. The S&P 500 Financials Sector rose by as much 2.3 percent, before settling to close up 0.55 percent, compared to a gain of 0.18 percent for the S&P 500 as a whole.

PNC Financial Services Group Inc. (NYSE: PNC)

Get Your Up-To-Date PNC Financial Research
Report Click Here

PNC Financial’s shares gained 0.73 percent to close at $118.79 a share Friday. The stock traded between $117.18 and $121.25 on volume of 4.03 million shares traded. The company reported a net income of $1.05 billion, or $1.97 per share, for the fourth quarter of 2016, analysts’ expectations had called for earnings of $1.85 per share, according to data from Thomson Reuters. Revenues for the fourth quarter totaled $3.9 billion, an increase of $45 million when compared to a year ago.

“PNC delivered a solid year in 2016. Although the financial results finished slightly below 2015, this was due in part to our disciplined risk management efforts throughout the year to position PNC well in the current credit and interest rate cycle,” said CEO William Demchak in a statement. “As we look ahead, I’m confident the actions we took position us for further growth and long-term value.”

Wells Fargo & Co.
(NYSE: WFC)

Get Your Up-To-Date Wells Fargo Research
Report Click Here

Wells Fargo’s shares gained 1.49 percent to close at $55.31 a share Friday. The stock traded between $54.65 and $56.20 on volume of 37.23 million shares traded. The company reported a profit of $5.27 billion, or $0.96 a share, in the fourth quarter of 2016, compared to $5.58 billion, or $1.00 a share, in the fourth quarter of 2015. Analysts’ expectations had called for earnings of $1.00 a share, according to analysts surveyed by Thomson Reuters. Revenues were $21.582 billion for the fourth quarter of 2016, below average analysts’ expectations of $22.45 billion. The company has reported net income $21.9 billion or diluted EPS of $3.99 a share for full year of 2016 as compared to net income of $22.9 billion or diluted EPS of $4.12 a share reported in 2015.

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