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February 28, 2023 at 02:49 PM
Related: 12 Best & Worst Broker-Dealer Stocks of 2022
Broker-dealers reported mixed earnings for the final quarter of 2022, with an equal number posting year-over-year growth and declines in corporate profits. But while one large BD saw its profits drop over 65%, another knocked it out of the park with an earnings jump of nearly 200%.
Speaking about the conditions affecting banks and other firms, JPMorgan Chairman & CEO Jamie Dimon said earlier this year: “The U.S. economy currently remains strong with consumers still spending excess cash and businesses healthy.”
Still, Dimon explained, “we do not know the ultimate effect of the headwinds coming from geopolitical tensions … , the vulnerable state of energy and food supplies, persistent inflation that is eroding purchasing power and has pushed interest rates higher, and the unprecedented quantitative tightening.”
The financial sector overall recorded a decrease in its reported earnings growth rate, which stood at -13.5% for the period versus analysts’ estimates of a -7.5% drop for the quarter, according to FactSet Research. The negative earnings-per-share surprises included results from Goldman Sachs and Wells Fargo.
Financial firms kick off the first-quarter earnings season on April 14, when JPMorgan and Wells Fargo plan to report their results.
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