US banks rise and fall after Q3 results
XLF•JPMorgan shares rose 1.4% despite reporting a quarterly profit of $5.57 per share, below the $5.85 estimate, while Goldman Sachs shares gained 1% after a profit beat. Citi shares fell 0.4% despite a 40% profit increase, and Wells Fargo shares dropped 1% after net income rose to $5.95 billion.
1. Mixed bank results
JPMorgan Chase reported third-quarter profit of $5.57 per share, below the $5.85 average estimate, as investment banking fees fell 8% sequentially and fixed-income trading revenue declined 4%; its shares rose 1.4%. Goldman Sachs shares gained 1% after its third-quarter profit beat estimates, with equities revenue up 72% to $6.44 billion and investment banking fees up 21% to $3.22 billion.
2. Citi and Wells Fargo
Citigroup shares fell 0.4% after its quarterly profit rose 40% to $5.25 billion, or $2.85 per share, from $3.8 billion, or $1.86 per share, a year earlier. Wells Fargo shares declined 1% after net income increased to $5.95 billion, or $1.87 per share, from $5.59 billion, or $1.66 per share, a year earlier.
3. Other bank shares
Morgan Stanley and Bank of America also traded higher ahead of their scheduled results on Wednesday. Wells Fargo said its customers were doing well despite economic uncertainty, while broader investor caution about future Federal Reserve rate hikes weighed on banking shares.
