LanlanCC
10-14

The CET1 ratio determines the room banks can do three things: loan, buy back shares, and take losses


JPM: CET1 from 14.8% → 13.9%, RWA increased $51 billion


GS: CET1 from 14.3% (early year) → 12.4%, both market and credit RWA rose


WFC: CET1 from 10.3% → 10.0%, target range bottom line


Citi: CET1 maintains 12.8% but is only about 120 basis points higher than requirement

Bank earnings intensify: net interest margin or loan-loss reserves first?
Bank Q3 results intensify: JPMorgan reported Tuesday; Morgan Stanley and Bank of America report Wednesday a.m. ET, BlackRock follows. BofA fell Tuesday after a $1.2B Treasury fine. Two lines matter: whether net interest margins hold or expand, and whether consumer and commercial loan-loss provisions rise in tandem. Bulls say high rates still support NIM and capital markets trading has recovered. Bears say elevated provisions would signal credit deterioration across the financial sector. Net interest margin or loan-loss provisions — which actually moves bank stocks this week?
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Comments

  • wigglyz
    10-14
    wigglyz
    JPM dropping to 13.9% with $51B more RWA reads more like balance sheet usage than capital stress
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