Another US earnings season kicked off on Tuesday (15 October) with four of the ‘big six’ US banks – JPMorgan Chase, Goldman Sachs, Citigroup and Wells Fargo – first out the gate.
Despite the challenges presented by falling interest rates, geopolitical worries and dwindling investment banking fees, results from these bellwethers remain robust.
JP Morgan beat both revenue and earnings estimates and its shares rallied. Goldman Sachs shares declined c2% when it narrowly beat revenue forecasts by fell short on earnings due to declining investment banking revenues.
Citigroup and Wells Fargo shares also suffered small losses despite modest revenue and earnings beats. The former struggled with a fall in equity trading while the latter paid out a $1.1bn settlement for its retail business.