All the major banks that reported third-quarter 2017 results over the last five trading days reported bottom-line growth. This was mainly driven by a rise in revenues attributable to higher net interest income and loan growth.
Moreover, margin pressure seems to be easing. Further, the rise in deposit balances helped drive organic growth at the banks. Banks were even able to control expense rise. All these led to positive price movement for the stocks over the last five trading sessions.
However, mortgage banking continued to disappoint along with muted investment banking performance. These were the primary reasons for lower non-interest income for the banks. Also, higher credit costs remained a headwind.
In the last five trading sessions, Capital One and JPMorgan Chase & Co. (JPM – Free Report) were the major gainers, with their shares rallying 3.2% and 2.2%, respectively. Bank of America Corp. (BAC – Free Report) moved up 2.1%.
(Read: Bank Stock Roundup for the week ending Oct 20, 2017)
Important Earnings of the Week
1. SunTrust Banks, Inc.‘s (STI – Free Report) third-quarter 2017 earnings of $1.06 per share were in line the Zacks Consensus Estimate. Results were primarily driven by an increase in net interest income and a slight fall in operating expenses. However, a rise in provision for credit losses and lower non-interest income (mainly owing to mortgage banking woes) were the headwinds. (Read more: SunTrust Q3 Earnings In Line, Net Interest Income Up)
2. Regions Financial Corporation’s (RF – Free Report) third-quarter 2017 earnings from continuing operations of 25 cents per share came in line with the Zacks Consensus Estimate. Easing margin pressure and lower expenses were the positives. Decline in non-interest income and a rise in provisions were the undermining factors. (Read more: Regions Financial’s Q3 Earnings in Line, Costs Down)
3. Fifth Third Bancorp (FITB – Free Report) reported third-quarter 2017 adjusted earnings per share of 48 cents in line with the Zacks Consensus Estimate. The adjusted figure excludes the impact of gain on the sale of Vantiv shares and charge related to the valuation of the Visa total return swap. Results were driven by an increase in net interest income, stable expenses and lower provisions. However, lower non-interest income was an undermining factor. (Read more: Fifth Third’s Q3 Earnings & Revenues Meet Estimates)
