The third-quarter earnings season for the broker-dealer group included an enormous loss for one wirehouse agency, which is digesting a former competitor. 4 BDs noticed their earnings decline from the year-ago interval, however six reported stronger outcomes.
“At present, U.S. customers and companies typically stay wholesome, though customers are spending down their extra money buffers,” defined JPMorgan Chase CEO Jamie Dimon in a press release when the agency introduced its newest outcomes. “Moreover, the battle in Ukraine compounded by [the Oct. 7] assaults on Israel could have far-reaching impacts on power and meals markets, international commerce, and geopolitical relationships.”
The CEO added: “This can be probably the most harmful time the world has seen in many years. Whereas we hope for the most effective, we put together … for a broad vary of outcomes so we will constantly ship for shoppers regardless of the atmosphere.”
The markets proceed to anticipate a pause within the Federal Reserve’s latest coverage of elevating rates of interest. The S&P 500 has improved over 20% this yr, however monetary shares should not maintaining. The Monetary Sector SPDR, for example, is up solely 4.7%, whereas the iShares U.S. Financials ETF has improved 6.9% yr up to now.
Nonetheless, leaders within the sector stay bullish. As an example, LPL Monetary CEO Dan Arnold stated throughout an earnings name that the agency now has “13 options in our total providers portfolio, [and] … we’ve obtained three extra options that we are going to roll out within the close to to intermediate time period and one other handful in incubation.”
These enterprise providers “proceed to be a spot of innovation for us, and we expect there’s nonetheless a superb little bit of alternative to proceed to assist [us] construct leverage factors for advisors within the spirit of serving to them run thriving companies,” Arnold stated.
On Jan. 12, JPMorgan, Wells Fargo and Citigroup will kick off the This autumn 2023 earnings season.
Credit score: Chris Nicholls/ALM