Mixed US banks earnings. Goldman Sachs loses 3% 📉

Bank of New York Mellon (BK.US)

Total revenue of $4.4 billion - in line with expectations

EPS was $1.12 - in line with expectations

• BNY Mellon delivered strong results in the first quarter. Revenues of $4.4 billion were up 11% year-on-year; expenses were up 3% year-on-year. Return on tangible common equity was 20%. The Tier 1 leverage ratio as well as the liquidity coverage ratio remained high and unchanged from the previous quarter at 5.8% and 118%, respectively.

Bank of America (BAC.US)

Revenue came in at $26.3 billion (consensus: $25.2 billion)

Adjusted EPS was $0.94, up from $0.80 a year earlier (consensus: $0.81).

Deposits fell from $2.07 trillion a year ago to $1.91 trillion.

• Net interest income, however, was 25% higher at $14.4 billion, in line with expectations of analysts surveyed by FactSet, thanks to higher interest rates and "solid" loan growth Bank of America beat analysts' estimates for the first quarter, thanks to strong interest income. 
• By business segment, consumer banking revenues rose 21% to $10.7 billion, global banking revenues rose 48% to $2.6 billion, global markets revenues rose 6% to $5.6 billion, while global wealth and investment management revenues fell 3% to $5.3 billion. 
• In the global markets, revenue from fixed-income instruments, commodities and currencies rose 27% to $3.4 billion, while revenue from equities fell 19% to $1.6 billion. Provisions for credit losses amounted to $900 million, down from $1.1 billion in the previous quarter.

Goldman Sachs (GS.US)

Revenue was $12.22 billion versus expectations of $12.79 billion

EPS was $8.79 per share versus expectations of $8.10 

• Goldman Sachs reported that net income rise 18% to $3.23 billion, beating estimates of Refinitiv analysts. But on the other hand, revenues fell 5% and were below estimates due to a decline in consumer loan volume and weaker-than-expected bond trading results.
• Unlike its more diversified rivals, Goldman derives most of its revenue from its Wall Street operations, mainly from trading and investment banking. Before the quarter began, analysts wondered whether the March turmoil - in which two U.S. banks collapsed and the global investment bank was forced to merge with a longtime rival - would be a good or bad backdrop for it's investment and trading activities.
• Revenue from equity trading fell 7% to $3.02 billion, exceeding estimates by $2.9 billion. Also investment banking revenues remained weak, falling 26% from a year ago to $1.58 billion, but were above market expectations of $1.44 billion;
• Securities trading revenue for the quarter fell 17% to $3.93 billion, about $230 million below StreetAccount's estimates, due to lower activity in the foreign exchange and commodities markets.

So far this earnings season, large banks have mostly outperformed their smaller competitors, helped by an influx of deposits following the collapse of Silicon Valley Bank. However, with retail banking playing a small - and likely increasingly smaller - role at Goldman, more attention should be focused on how commercial and investment banking have performed. And these have performed poorly.

Goldman Sachs (GS.US) opened US session with bearish price gap but bulls are trying to reverse the reaction during session opening. Source: xStation5