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.
“Presently, U.S. shoppers and companies typically stay wholesome, though shoppers are spending down their extra money buffers,” defined JPMorgan Chase CEO Jamie Dimon in an announcement when the agency introduced its newest outcomes. “Moreover, the conflict in Ukraine compounded by [the Oct. 7] assaults on Israel could have far-reaching impacts on vitality and meals markets, international commerce, and geopolitical relationships.”
The CEO added: “This can be essentially the most harmful time the world has seen in many years. Whereas we hope for the very best, we put together … for a broad vary of outcomes so we are able to constantly ship for purchasers irrespective 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 12 months, however monetary shares are usually not maintaining. The Monetary Sector SPDR, as an example, is up solely 4.7%, whereas the iShares U.S. Financials ETF has improved 6.9% 12 months 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 general companies portfolio, [and] … we’ve bought 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 companies “proceed to be a spot of innovation for us, and we expect there’s nonetheless a very good 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
