Full year 2021 results:
- EPS: US$15.39 (up from US$8.89 in FY 2020).
- Revenue: US$130.9b (up 28% from FY 2020).
- Net income: US$46.5b (up 70% from FY 2020).
- Profit margin: 36% (up from 27% in FY 2020). The increase in margin was driven by higher revenue.
- Net interest margin (NIM): 1.64% (down from 1.98% in FY 2020).
- Cost-to-income ratio: 57.0% (up from 54.0% in FY 2020).
- Non-performing loans: 0.72% (down from 1.04% in FY 2020).
Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.2%.Over the next year, revenue is expected to shrink by 5.6% compared to a 5.4% growth forecast for the banks industry in the US.
Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth.