The main driver of this 5% total earnings growth in the 1Q 2013 was Wells Fargo, which experienced a 23% earnings growth. However, on a Pretax/PreProvision For Loan Loss basis, Wells Fargo's 23% reported earnings growth drops dramatically to only 2%.
Bank of America's 1Q 2012 Adjusted Earnings below are before its large Debit Valuation Loss Adjustment on it Trading Liabilities, its large Fair Value Adjustment on its Structured Liabilities, and its large Gains on Debt and Trust-Preferred Repurchases. I estimated the related Income Tax effect on these large items.
I have to wonder about the fairness of the recent US Government action which lets these Big Financial companies buy back so many of their common shares with no strings attached. This is clearly an economic benefit for only the 1%, not for the entire country. Haven't these Big Financial Corps already gotten enough largesse from the US Government, even though they first wrecked the US economy on a long-term basis and even while they continue to clever-by-half soak their customers, the 99%, in so many ways, and also do nothing to stimulate the US economy?
Below here are the 1Q 2013 and 1Q 2012 Adjusted Earnings for each of these US Big 8 Financial Corps:
| Adjusted | Adjusted | |||
| 1Q | 1Q | Net | Net | |
| 2013 | 2012 | Income | Income | |
| Adjusted | Adjusted | Increase | Increase | |
| Net | Net | (Decrease) | (Decrease) | |
| Income | Income | Amount | % | |
| mils of $s | mils of $s | mils of $s | ||
| US Big 8 Financial | ||||
| JPMorgan Chase | 6,117 | 6,402 | (285) | -4% |
| Wells Fargo | 4,931 | 4,022 | 909 | 23% |
| Citigroup | 4,073 | 3,428 | 645 | 19% |
| Bank of America | 2,250 | 2,588 | (338) | -13% |
| Goldman Sachs | 2,188 | 2,074 | 114 | 5% |
| General Electric Capital | 1,927 | 1,772 | 155 | 9% |
| US Bancorp | 1,358 | 1,285 | 73 | 6% |
| Morgan Stanley | 1,177 | 1,343 | (166) | -12% |
| Total all 8 | 24,021 | 22,914 | 1,107 | 5% |
