In this episode of Motley Fool Money, long-time analysts Emily Flippen, Jeff Santoro, and Jason Hall dive into bank earnings, Robinhood’s meteoric rise, and take a look at how alcohol consumption has changed the landscape for vice investments. Companies discussed: JPM, GS, WFC, HOOD, STZ, SAM Host: Emily Flippen, Jason Hall, Jeff Santoro Producer: Anand Chokkavelu Engineer: Dan Boyd Disclosure: Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement. We’re committed to transparency: All personal opinions in advertisements from Fools are their own. The product advertised in this episode was loaned to TMF and was returned after a test period or the product advertised in this episode was purchased by TMF. Advertiser has paid for the sponsorship of this episode. Learn more about your ad choices. Visit megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices
Full Episode
We're digging up bank earnings and trying to figure out between Robin Hood, beer, and cannabis if the kids are truly doing all right. This is Motley Fool Money. It's Tuesday, October 14th. Welcome to Motley Fool Money. I'm your host, Emily Flippen, and today I'm joined by analysts Jason Hall and Jeff Santoro.
Guys, I am really excited to get into some of the shifting trends that we've been seeing over the course of the past year. That includes a 250% rise in Robinhood shares, as well as beer and alcohol consumption reaching all-time lows in the United States. But first, I know we have some very important housekeeping to do with the news of the day and bank earnings.
I mean, I guess we really should eat our veggies before moving straight to dessert, right? And Jason, every quarter, a slew of banks report quarterly results. That really kicks off earnings season. And you're a better analyst than Jeff and myself because you actually look forward to these reports every quarter. But... Today, we're seeing a lot of broad-based beats, it seems.
Dealmaking, trading, they're all running hot in the first full quarter here. When you look at these reports, what do you think investors should be taking away?
First off, I'd say a lot of people are going to challenge whether they would consider somebody that looks forward to bank earnings to be better than somebody like yourself, Emily. I just wanted to get that out there. This is definitely important, what we're dealing with. We got results from three of the big four U.S.
banks, JPMorgan, Wells Fargo, Citi reported, and of course, the investment banking giant, Goldman Sachs. They all delivered really strong results last quarter. Citi and Wells, their businesses, for different reasons, have long struggled.
We've seen some serious work from Jane Fraser, CEO of Citi, working hard to tear down this unwieldy low-profit empire that her predecessors built and try and turn Citi into a leaner, more profitable bank. We saw some of that progress this quarter. Really strong revenue and earnings growth.
even after the impact of a nearly $3.25 billion write-down tied to the partial sale of Banamex, its international subsidiary. Credit quality is also holding up really well. Return on tangible equity is improving. It's worth noting that it's still way below its peers, but it's moving in the right direction. If we look at Wells, similarly, it's on a big upswing.
It just reported its first full quarter free of the asset cap that the Fed imposed. You go back to 2018 when that asset cap was put in place, that's part of the punishment. You guys remember the fake account scandal? Unfortunately. We're finally free of that, and Wells can start growing its assets again. Earnings were up 9%.
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