Company News

-BUZZ-U.S. banks drop led by Wells Fargo, Citi after Q2 results

(updates prices)

** Mixed quarterly results pushed down shares in the biggest U.S. banks on Friday with the biggest drags from Wells Fargo and Citigroup which kicked off the sector’s earnings season alongside JPMorgan Chase

** S&P 500 bank index was last down 0.8 pct after paring losses. On track for biggest one-day pct decline since July 3

** WFC was lead sector drag, last down 2.0 pct at $54.89 after falling as low as $53.63 Q2 adj. EPS of $1.08 misses estimates of $1.12 (after a beat n Q1 and miss in Q4) as lending activity slowed due to higher interest rates and expenses

** Wells Fargo has booked several billions of dollars in fines and penalties stemming from regulatory probes and to settle lawsuits due to sales and mortgage abuses.

** Citi shares last down 2.8 pct at $66.62 after falling as low as $66.22 Q2 EPS of $1.63 tops consensus of $1.56, continuing its beat streak; But rev of $18.47 bln misses cons. of $18.51 bln after meeting estimates in prior two qtrs

** JPMorgan was last up 0.5 pct, after it beat Q2 EPS estimates

** Bank of America was down 0.9 pct; Goldman off 0.2 pct while Morgan Stanley edged up 0.2 pct

** Up to Thursday’s close, WFC and C neck-and-neck YTD, with shares down 7.7 pct and 7.9 pct, respectively

** JPM flat YTD, best performer among big six, Goldman’s 11 pct slide the most; S&P 500 banks down ~3 pct (Reporting by Savio D’Souza)