The third-quarter earnings season for the broker-dealer neighborhood 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 the moment, U.S. shoppers and companies typically stay wholesome, though shoppers 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 might have far-reaching impacts on vitality and meals markets, world 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 most effective, we put together … for a broad vary of outcomes so we are able to persistently ship for purchasers irrespective of the surroundings.”
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 aren’t maintaining. The Monetary Sector SPDR, for example, is up solely 4.7%, whereas the iShares U.S. Financials ETF has improved 6.9% yr thus far.
Nonetheless, leaders within the sector stay bullish. As an example, LPL Monetary CEO Dan Arnold mentioned throughout an earnings name that the agency now has “13 options in our total companies portfolio, [and] … we’ve received 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 an excellent 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 mentioned.
On Jan. 12, JPMorgan, Wells Fargo and Citigroup will kick off the This fall 2023 earnings season.
Credit score: Chris Nicholls/ALM
