SOURCE: Paragon Financial Limited

Paragon Financial Limited

July 16, 2012 08:20 ET

Strong Earnings From JPMorgan and Wells Fargo Lead Bank Stocks Rally

The Paragon Report Provides Stock Research on JPMorgan and Wells Fargo

NEW YORK, NY--(Marketwire - Jul 16, 2012) - Strong earnings from JPMorgan and Wells Fargo saw bank stocks rally sharply last Friday. The financial sector was the strongest performing of the 10 sectors in the S&P 500 Index. The SPDR KBW Bank ETF (KBE) rose 2.69 percent Friday, and is up over 11 percent for the year. The Paragon Report examines investing opportunities in the Banking Industry and provides equity research on JPMorgan Chase & Co. (NYSE: JPM) and Wells Fargo & Company (NYSE: WFC).

Access to the full company reports can be found at:

www.ParagonReport.com/JPM

www.ParagonReport.com/WFC

Wells Fargo reported that second-quarter profits surged 17 percent from the year-ago quarter as a result of their strong mortgage-banking business. Investors were eager to see whether JPMorgan's massive trading blunder would have a significant impact on the banks earnings. Despite the trading error the bank posted second quarter profits of $5 billion, down just 8.7 percent from a year ago.

"There was a lot of hand wringing over J.P. Morgan's earnings numbers," said DWS Investments' Owen Fitzpatrick, head of U.S. equity strategy. "The fact that we're seeing results that look OK is settling markets down, and people are thinking that maybe this quarter isn't going to be as bad as expected."

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JPMorgan Chase & Co. reported second-quarter 2012 net income of $5.0 billion, compared with net income of $5.4 billion in the second quarter of 2011. Earnings per share were $1.21, compared with $1.27 in the second quarter of 2011. The Firm's return on tangible common equity for the second quarter of 2012 was 15%, compared with 17% in the prior year. Shares of the company surged nearly 6 percent on Friday.

Wells Fargo & Company reported record net income of $4.6 billion, or $0.82 per diluted common share, for second quarter 2012, up from $3.9 billion, or $0.70 per share, for second quarter 2011, and up from $4.2 billion, or $0.75 per share, for first quarter 2012. For the first six months of 2012, net income was $8.9 billion, or $1.57 per share, compared with $7.7 billion, or $1.37 per share, a year ago.

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