Big banks say U.S. consumers sturdy
America's financial titans kicked off earnings season Tuesday with mixed results. Quarterly profit and revenue at JPMorgan Chase and Citigroup rose, and earnings at both banks crushed Wall Street's estimates.
Revenue rose at three of the four main businesses at the House of Morgan, helped by strength in bond trading and underwriting. CEO Jamie Dimon said its results signal that the "consumer is doing fine."
That was also reflected at Citi, where growth in its consumer banking business offset weakness in trading. Helping boost its consumer business: more customers began to pay interest on their credit cards as promotional periods wore off.
But it was a different story at Well Fargo and Goldman. Profit plunged at Wells as mortgage income sank 45%. The bank was also hit by its prolonged sales practices scandal; it set aside $1.6 billion for legal costs.
Profit at Goldman dropped 27% and missed analysts' estimates. Global economic worries curtailed demand for deals and share sales, resulting in a sharp decline in investment banking revenue.
Goldman's shares fell in early trading Tuesday, while JPMorgan's stock soared to a record high. Citi and Wells Fargo also gained. '
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America's financial titans kicked off earnings season Tuesday with mixed results. But that didn't keep investors from buying financial shares, driving the markets higher. Quarterly profit and revenue at JPMorgan Chase and Citigroup rose,and earnigns at both banks crushed Wall Street's estimates.
Revenue rose at three of the four main businesses at the House of Morgan, helped by strength in bond trading and underwriting. CEO Jamie Dimon said its results signal that the "consumer is doing fine."
That was also reflected at Citi, where growth in its consumer banking business offset weakness in trading. Helping boost its consumer business: more customers began to pay interest on their credit cards as promotional periods wore off.
But it was a different story at Well Fargo and Goldman. Profit plunged at Wells as mortgage income sank 45%. The bank is bracing for more legal expenses tied to its sales practices scandal.
Profit at Goldman dropped 27% and missed analysts' estimates. Global economic worries curtailed demand for deals and share sales, resulting in a sharp decline in investment banking revenue.
Goldman's shares fell in early trading Tuesday, while JPMorgan's stock soared to a record high. Citi and Wells Fargo also gained.
