Earnings season really gets going tomorrow with earnings reports from 3 of the 4 largest banks by deposits. That is Wells Fargo, JP Morgan, and Citi. For us, we are are going to be focusing on a couple key data points.
For Wells Fargo we really want to see the health in their auto loan business. How do net charge-offs look, are they taking on more or less loans in their auto business. They are one of the biggest lenders in autos, therefore it's pretty key given auto loans now make up roughly 10% of all loans outstanding in the economy. We also are looking to find any more information as it relates to their ongoing legal battles. Lastly, net interest margins and loan growth are always key stats to track.
JP MORGAN & CITI
For JP Morgan and Citi its all about their trading businesses. With choppy trading at the end of last year and into the first quarter, it'll be interesting to see how they were able to take advantage. We will also be looking at some of the more common metrics as with Wells Fargo.
Here's a look at the rest of the banking sector. When they report, size, profits, and more.
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Sean D. Emory
Avory & Co. Founder & Chief Investment Officer
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