Big Bank Earnings Mixed; JPMorgan Beats, Citi Revenue Light, Wells Profit Shy

Investing.com – A trio of big banks reported mixed results Friday, but shares of JPMorgan Chase, Citigroup and Well Fargo were all higher in premarket trading.

JPMorgan Chase (NYSE:) reported quarterly profit and revenue that topped analysts’ expectations. Citigroup (NYSE:) also beat profit forecasts, but its revenue were a tad below expectations. And Wells Fargo (NYSE:) missed on earnings estimates, but its revenue topped the consensus estimate.

Bank stocks have been unimpressive over the last three months. The shares looked to be on a comeback as bond yields rose, helping net interest margins, but the bullishness was short-lived as financials joined the broader recent selloff.

JPMorgan Chase

JPMorgan said it $2.34 cents per share in the third quarter. On average, analysts predicted that JP Morgan would earn $2.27 per share.

Shares of the Dow component were up about 1.8% in premarket trading, compared with a gain of about 2.5% before the results were released.

The bank posted managed revenue of $27.8 billion, which was above forecasts. Wall Street was looking for revenue of $27.58 billion.

Services revenue gained thanks to higher interest rates, which helped counter flat investment banking revenue. The company also benefitted from lower taxes, noting its effective tax rate was 21.6% for the quarter, compared to 29.6% in the year-ago period.

Citigroup

Citi reported earnings per share of $1.73 on revenue of $18.39 billion. Analysts polled by Investing.com expected a profit of $1.67 a shares on revenue of $18.45 billion.

The stock dipped immediately in premarekt trading after the numbers came out, but the recovered strongly, climbing around 3%.

With revenue basically flat from the year-ago period, Citi’s profit beat was driven by a lower tax rate. Its effective tax rate fell to 24% in the third quarter from 31% in the same quarter a year ago.

Wells Fargo

Wells Fargo reported earnings per share of $1.16 on revenue of $21.94 billion. The Street was looking for EPS of $1.19 on revenue of $21.82 billion.

That compared to EPS of $1.04 on revenue of $24.51 billion in the same period a year earlier.

Shrare of Wells Fargo held up in premarket, rising 1.5%.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.