Half of the largest broker-dealers reported positive earnings growth in the second quarter of 2011, while others reported losses due to one-time charges and other issues. According to Bloomberg, the average earnings growth reported by financial companies in the S&P 500 Index was 15.7% for the period.
Here are 10 companies that had the “high honor” of AdvisorOne selecting as five of the Best and five of the Worst performers in the second quarter.
5th Best: JPMorgan Chase
JPMorgan Chase, led by Jamie Dimon (left), reported a 17% year-over year increase in second-quarter profits, which were $5.4 billion, or $1.27 per share, in the latest period vs. $4.8 million, or $1.09 per share, a year ago. Revenue grew 7% to $27.4 billion.
The bank continues to grapple with legal problems in its home-lending unit, and its retail financial-services group recently set aside a $1.1 billion provision for credit losses.
Charles Schwab said its second-quarter net income was $238 million, or 20 cents a share, up roughly 18% from $205 million, or 17 cents a share, in the year-ago period.
Net revenues were nearly $1.2 billion in the recent period, up about 10% from nearly $1.1 billion a year earlier. The total number of average daily trades declined 9% year over year and 16% quarter over quarter to about 397,000. Schwab says client assets in Schwab retail advisory offerings grew 20% year over year to $113 billion as of June 30.
Wells Fargo reported record net income of $3.9 billion, or $0.70 per share, for the second quarter of 2011, up from $3.1 billion, or $0.55 per share, a year ago, for a roughly 27% improvement.
The Wealth, Brokerage and Retirement group—which includes Wells Fargo Advisors—had net income of $333 million in the June quarter, up from $270 million a year ago but down slightly from $339 in the quarter ending in March.
2nd Best: Ameriprise
Ameriprise Financial said net income from operations was $313 million, or $1.25 per share—a jump of 29% over last year’s results of $257 million, or $0.97 per share.
Revenues for the period were $2.62 billion. Operating earnings from continuing operations—which include 9,663 advisors and exclude results at its troubled broker-dealer Securities America—were $328 million, or $1.31 per share, up 21% from a year ago.
LPL Investment Holdings, parent company of LPL Financial—seen here celebrating it’s 2010 IPO— reported second-quarter net income of $45.5 million, or $0.40 per share, vs. year-ago net income of $ 8 million, or $0.08 per share—a jump in its profits of 470%.
Total advisory and brokerage assets hit $340.8 billion, while net new advisory assets were $3.1 billion. Also, the company says it added 594 new advisors during the past 12 months.