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On Monday, Goldman Sachs and CitiGroup released their earnings reports for Q1 2019. CitiGroup’s profits rose 2% year over year, while Goldman Sachs saw a 13% decline, below analyst’s expectations.
“We are pleased with our performance in the first quarter, especially in the context of a muted start to the year,” Goldman CEO David Solomon said in the release. “Our core businesses generated solid results driven by our strong franchise positions. We are focused on new opportunities to grow and diversify our business mix and serve a broader range of clients globally.”
Goldman Sachs’ real estate lending declined from Q4 2018, but increased year over year in Q1 2019. Meanwhile, CitiGroup reported a slight increase in mortgage lending, both year over year and quarter over quarter in Q1 2019.
“Our earnings reflect the progress we are making to improve our return on and return of capital,” said Citi CEO Michael Corbat in a statement. “Both our consumer and institutional businesses performed well and we saw good momentum in those areas where we have been investing, such as U.S. Branded Cards, Treasury and Trade Solutions, and Investment Banking. Importantly, our strategy in North America consumer banking is showing good early results as we introduce new products and engage with a broader range of customers, through digital channels.”
Wells Fargo and JPMorgan Chase released their respective Q1 2019 earnings on Friday, with both banks exceeding expectations.
“In the first quarter of 2019, we had record revenue and net income, strong performance across each of our major businesses and a more constructive environment,” said Jamie Dimon, Chairman and CEO of JPMorgan Chase in a statement. “Even amid some global geopolitical uncertainty, the U.S. economy continues to grow, employment and wages are going up, inflation is moderate, financial markets are healthy and consumer and business confidence remains strong.”
JPMorgan Chase’s home lending net revenue was $1.3 billion, up from the previous quarter by down 11% year over year, driven by lower net servicing revenue. Wells Fargo’s mortgage banking income was $708 million, up from $467 million in fourth quarter 2018, and the production margin on residential held-for-sale mortgage loan originations increased to 1.05%, from 0.89% in the fourth quarter.
