Banks Beat Estimates But Are Still Getting Hammered In Early Trading

Citigroup, Bank of America, and GE all reported earnings this morning. They all performed well, though there are doubts over the long term prognosis for each.

First, an earnings briefing:

  • Citigroup Inc. net income beat analysts’ estimates today, with profit dropping 38 per cent. The bank’s Q2 net income of this year was $2.73 billion, compared to $4.39 billion the same time last year.
  • Bank of America also exceeded analysts expectation, with profits nearly unchanged in comparison to last year. Its Q2 net income¬† fell to $3.12 billion from the $3.22 billion of a year ago.¬†
  • GE, with its GE Capital division, beat analyst estimates and posted double digit earnings growth of 16%.

The result has seen each stock move down in early trading, so obviously investors aren’t very impressed with the long term outlook.

  • GE, down 3.87%
  • Bank of America, down 6.37%
  • Citigroup, down 3.61%

Just look at Bank of America, getting hammered in early trading:

BAC 716

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