Goldman Sachs Exited 2023 With A Q4 Win But Like Morgan Stanley, Its Annual Figures Lacked Luster
Portfolio Pulse from Upwallstreet
Goldman Sachs (GS) and Morgan Stanley (MS) reported their Q4 earnings, with GS beating estimates and MS showing mixed results. GS ended its streak of declines with strong asset and wealth management performance, while MS's earnings were affected by one-time fees. Both banks, along with JPMorgan Chase (JPM), Wells Fargo (WFC), Bank of America (BAC), and Citigroup (C), faced one-time charges, impacting their annual figures. Despite a challenging 2023, there is cautious optimism for 2024, with banks like Citi expressing confidence in a turnaround.
January 26, 2024 | 3:44 pm
News sentiment analysis
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NEGATIVE IMPACT
Bank of America faced hefty one-time charges in Q4, contributing to a less impressive annual performance.
The significant one-time charges could lead to negative investor sentiment in the short term, potentially impacting BAC's stock price negatively.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
Wells Fargo warned of a drop in net interest income after a rise in credit loss provisions, despite expressing confidence in future returns.
The warning about net interest income and credit loss provisions could negatively affect investor sentiment, potentially leading to a short term decline in WFC's stock price.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60
NEUTRAL IMPACT
Citigroup had its worst quarter in 14 years due to one-time charges, but CEO Jane Fraser is confident in a 2024 turnaround.
While the recent quarter was challenging, the CEO's confidence in a turnaround may balance out short term investor sentiment, leading to a neutral impact on C's stock price.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 60
NEUTRAL IMPACT
JPMorgan Chase reported its best-ever annual profit but faced significant one-time charges in Q4.
The record annual profit is a strong positive, but the one-time charges may temper short term stock price movements, resulting in a neutral impact.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Morgan Stanley's Q4 revenue topped estimates, but earnings were dampened by one-time fees, with an 18% net income drop for 2023.
Mixed Q4 results with revenue beating estimates but earnings hit by fees may lead to a neutral short term impact on MS's stock price, as investors digest both positive and negative aspects.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Goldman Sachs surpassed Q4 revenue and earnings estimates, reporting a 51% YoY profit rise, but faced a 24% net income drop for 2023 due to exiting retail banking.
The positive Q4 earnings beat and the end of a decline streak are likely to instill investor confidence in the short term, potentially leading to a positive impact on GS's stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90