Wells Fargo & Co (NYSE: WFC) kicked off the earnings parade in the financial sector, revealing a positive indication of where big banks are sitting. Next week, financials exchange traded fund investors will be looking out for other big hitters in the space.
Looking ahead, Citigroup (NYSE: C) will announce its second-quarter earnings results bright and early on Monday, July 14.
On Tuesday, July 15, Goldman Sachs (NYSE: GS) will release data before the market open and JPMorgan Chase (NYSE: JPM) will reveal their numbers at 7:00 am eastern.
Additionally, BlackRock (NYSE: BLK) and U.S. Bancorp (NYSE: USB) will disclose their second quarter results before the market opens Thursday, July 16 while Bank of America (NYSE: BAC) will announce its numbers at 7:00 am ET.
According to Bloomberg data, earnings for banks are projected to decline 3.9% in the second quarter. The financials sector is the only group expected to experience declining profits.
The sector has been weighed down by red tape and compliance to meet new regulatory rules in the wake of the financial crisis. [Financial Sector ETFs Still Face Headwinds]
“The final results in March of the Federal Reserve’s annual stress test on the United States’ 30 largest banks demonstrate both a lack of robustness on the part of some large lending institutions – including Citigroup – as the clear presence of a prominent headwind in the form of elevated compliance, regulatory, and legal costs across the industry,” writes Morningstar analyst Robert Goldsborough.