Q2 Bank Earnings Season Off to Strong Start
Key Questions
Which major banks beat Q2 earnings expectations?
JPMorgan, Bank of America, Wells Fargo, and Citigroup all beat Q2 expectations. FactSet reported an 88% positive EPS surprise rate and 24.7% earnings growth for the sector.
What dividend change did Bank of America announce?
Bank of America increased its quarterly common stock dividend by 4 cents, or 14%, to $0.32 per share. This reinforces the sector's capital-return strength.
How has the Financials sector performed recently?
The Financials sector broke out to 52-week highs amid the strong earnings results. Overbought conditions suggest caution despite the positive momentum and rotation into the sector.
JPMorgan, Bank of America, Wells Fargo, and Citigroup all beat Q2 expectations, with FactSet reporting 88% positive EPS surprises and 24.7% earnings growth. The Financials sector broke out to 52-week highs, though overbought conditions warrant caution. BofA hiked its dividend 14% to $0.32/share, reinforcing capital-return strength. This reinforces the rotation into Financials and sets a high bar for other sectors.