Shares rise on report backdrop

Shares of major US banks Bank of America (BAC), Morgan Stanley (MS), Wells Fargo (WFC) and Citigroup (C) rose at the premarket after the release of Q3 2021 reports. Banks' earnings and profits beat Wall Street expectations.

Shares of Bank of America (BAC), Morgan Stanley (MS), Wells Fargo (WFC) and Citigroup (C) rose 2.4%, 2.2%, 0.85% and 1% respectively at Thursday's premarket.

Bank of America report

Bank of America (BAC), with a market capitalisation of $361bn, reported Q3 earnings per share growth of 67% to $0.85 on Thursday.

Revenue rose 13% to $22.87 billion, also above the $21.8 billion estimate.

Bank of America has achieved strong results due to increased deposits, loans, record advisory fees and asset management fees.

In addition, the second largest US bank by assets released $1.1 billion in reserves during the third quarter.

Bank of America shares are up 42.33% since the start of 2021.

Morgan Stanley report

The financial conglomerate reported third-quarter earnings per share growth of 19% to $1.98.

Earnings rose 21% to $14.8 billion, compared with a market estimate of $13.66 billion. Morgan Stanley's quarterly earnings and revenue statistics.

Growth was helped by the acquisitions of E-Trade and Eaton Vance, which boosted the company's asset management divisions. Morgan Stanley posted record new assets of $135bn in wealth management. The bank's equity income jumped 24% year-on-year to $2.88bn, beating estimates by more than $500m. Fixed-income income fell 16% to $1.64bn, but beat analysts' estimates of $1.53bn.

Morgan Stanley's earnings from its investment banking division rose 67% to a record $2.85 billion.

Morgan Stanley shares are up 43.83% since the start of 2021.

Wells Fargo report

Revenue was $18.83 billion, also above average market forecasts of $18.35 billion Wells Fargo's quarterly revenue and profit statistics.

In the third quarter of 2021, the bank issued 1,65 mlrd reserves and repurchased 114,2 mln common shares for $5.3 billion.Wells Fargo also doubled its dividend in the previous quarter to $0.20 per share.

The bank reported a decline in loans, which made it difficult for overall earnings growth as the bank does not have a large capital markets business like its competitors.