Wells Fargo (WFC) kicked off the second-quarter bank earnings season this quarter. The bank met earnings expectations with net income of $1.01 per share.
Citigroup (C) is set to report on Monday, followed by JPMorgan (JPM) on Tuesday and Bank of America (BAC) on Wednesday. Analysts expect earnings of $1.08 per share, $1.29 per share and $0.27 per share, respectively.
Other heavy reporting days (when 10 or more companies share their latest results) will be next Friday, as well as July 22, 23 and 24, according to Sterne Agee.
Looking at the financial models for the nearly 120 banks covered by the investment firm, Sterne Agee estimates second-quarter EPS is likely to rise 3.4% year over year vs. the 1.1% growth rate of Q1’14.
On a quarterly basis, the average EPS should improve 22%.
“We believe the Q2’14 pickup relative to the prior quarter reflects expectations for a seasonal rebound in certain fee-income areas and in some cases lower operating expenses,” said Terry McEvoy and colleagues in their industry report, which was published Friday.