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 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.
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 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%.
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