JPMorgan revealed a rare earnings miss while Goldman Sachs blew past revenue estimates as four of the nation’s top banks reported mixed third-quarter earnings Tuesday.
JPMorgan – the largest US bank by assets and the largest in the world by market cap – reported earnings per share of $5.57, missing estimates of $5.90. It recorded revenue of $50.91 billion, below expectations of $51.22 billion.
The bank’s fixed income trading of $5.4 billion missed estimates by roughly $550 million. Expenses were about $90 million more than expected, as costs grew 12% over the past 12 months and revenue jumped just 8% over the same period – a troubling sign for investors.
Meanwhile, JPMorgan CEO Jamie Dimon on Tuesday warned that financial pain across the US would worsen if interest rates rise another percentage point – and traders are largely expecting the Fed to hike rates another quarter point in December.
Goldman Sachs blew past earnings expectations, recording $18.68 billion in net revenue – nearly $2 billion more than estimated.
The bank’s third-quarter earnings beat was largely driven by strong equities trading, as revenue in the division jumped 72% from the year before to $6.44 billion, about $1.42 billion more than expected.
Citigroup also delivered an earnings beat. It reported earnings per share of $2.85, besting estimates of $2.66, and revenue of $23.85 billion, above expectations of $23.72 billion.
Wells Fargo had a mixed quarter, with earnings per share of $1.87 slightly edging out expectations of $1.85, but revenue of $21.87 billion missing estimates for $22.3 billion.
Bank of America and Morgan Stanley – which round out the six largest banks in the nation – are scheduled to report third-quarter earnings on Wednesday.
This is a developing story. Please check back for updates.