Beats Earnings by ~10% & Misses Revenue expectations by ~33%
Total Revenue: -$1.63 Bn, down 132% YoY, down 134% QoQ
Net earnings: $826 Mn, down 33% YoY, down 24% QoQ
Shares unchanged after results
Key Takeaways:
Expects full-year 2024 revenue to decrease by 4%-5% YoY; Q3 revenue to drop ~2%
Provision for Credit Losses: $451 MM, down 16% YoY, down 9.8% QoQ
Average Total Deposits: $388 Bn, down 0.3% QoQ
Average Total Loans and Leases Held for Investment: $306 Bn, down 0.7% QoQ
CEO Bill Rogers on Revenue Drop:
“The significant revenue drop in the second quarter is primarily due to the strategic balance sheet repositioning, which resulted in substantial securities losses. While these adjustments have impacted our short-term revenue figures, they are part of our long-term strategy to improve our interest rate risk profile and create additional liquidity. Despite these challenges, we are seeing solid momentum in our core banking businesses, with strong year-over-year growth in investment banking and trading revenue.”
