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% |