Wednesday, March 6, 2013

US Big 8 Financial Corps 2012 Annual Earnings Up 8% over 2011

The US Big 8 Financial Corps generated 2012 Annual Generally Accepted Accounting Principles (GAAP) Total Combined Net Income of $73.9 bil, up $5.6 bil, or up 8% over 2011.

I am using GAAP Net Income here because there are so many large unusual items in each year for some of these companies.  Let me mention several.

Included in JPMorgan Chase's 2012 Net Income are $6.2 bil of Pretax Derivative Credit Losses.  And included in Citigroup's 2012 Net Income is a $4.7 bil Pretax Write-down on its MSSB Joint Venture with Morgan Stanley.  These two are offset somewhat by Bank of America's 2011 Net Income including a $3.2 bil Goodwill Impairment Charge.

Thus when you put it altogether, the ongoing real total earnings growth for these US Big 8 Financial Corps in 2012 over 2011 is much higher than 8%.

Below here is the GAAP Net Income for both annual 2012 and 2011 for each of these 8 US Big Financial Corps:



Annual Annual



2012 2011



GAAP GAAP



Increase Increase

Net Net (Decrease) (Decrease)
Company Income Income Amount %


mils of $s mils of $s mils of $s
US Big 8 Financial




JPMorgan Chase
21,284 18,976 2,308 12%
Wells Fargo
19,368 16,211 3,157 19%
Citigroup
7,909 11,103 (3,194) -29%
Goldman Sachs
7,475 4,442 3,033 68%
General Electric Capital
7,464 6,711 753 11%
US Bancorp
5,490 4,788 702 15%
Bank of America
4,188 1,446 2,742 190%
Morgan Stanley
754 4,689 (3,935) -84%




Total all 8
73,932 68,366 5,566 8%

Two items driving this 8% total earnings growth are substantially higher Mortgage Fees and Related Income as well as lower Provisions for Credit Losses.

And below here are the seven without GE Capital, which is consolidated with GE.  The earnings numbers below are GAAP Net Income from Continuing Operations Attributable to Common Shareholders:




Annual Annual



2012 2011



Net Net    


Income Income Net Net


Attributable Attributable Income Income
 
To To Increase Increase
 
Common Common (Decrease) (Decrease)
Company FYE Shareholders Shareholders Amount %


mils of $s mils of $s mils of $s
US Big 7 Financial



JPMorgan Chase
19,877 17,568 2,309 13.1%
Wells Fargo
17,999 15,025 2,974 19.8%
Citigroup
7,506 10,762 (3,256) -30.3%
Goldman Sachs
7,292 2,510 4,782 190.5%
US Bancorp
5,383 4,721 662 14.0%
Bank of America
2,760 85 2,675 3147.1%
Morgan Stanley
(50) 2,117 (2,167) -102.4%




   
Total all 7
60,767 52,788 7,979 15.1%