Major US banks report strong Q3 profits despite higher rates concerns

Summarised from 2 outlets · Updated 13 Oct, 15:02 · Archive

Wall Street's biggest banks reported strong third-quarter profits as US consumers continued spending and businesses invested in AI.

Wall Street's biggest banks reported strong third-quarter profits on Tuesday, driven by continued US consumer spending and heavy business investment in AI. JPMorgan Chase, Citigroup, Wells Fargo and Goldman Sachs all posted higher profits than the same period a year earlier.

JPMorgan posted a $15.3 billion profit in the third quarter, or $5.57 a share, up from $14.4 billion or $5.07 a share a year earlier. However, the results missed analysts' expectations, who had forecast $5.93 a share. The miss was rare for JPMorgan, the last occurring nearly three years ago. The investment banking division was blamed, as its fixed income trading desks saw slower activity compared to earlier in the summer and the previous year. JPMorgan's shares rose 0.8% in early trading.

CEO Jamie Dimon said in a statement that 'the US economy continued to be fuelled by strong business investment and ongoing consumer spending'. The banks warned about the potential long-term impact of higher interest rates and the risk that uncontrolled inflation could harm consumers' ability to pay bills.

Major US banks report strong Q3 profits despite higher rates concerns — Image: Clickorlando

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How it is being reported

Big banks post strong Q3 profits, but warn higher rates and inflation could biteWall Street’s biggest banks have reported another strong quarter as U.S. consumers continue to pay bills and businesses invest in AI.Clickorlando · 13 Oct, 14:29
Big banks post strong Q3 profits, but warn higher rates and inflation could biteWall Street’s biggest banks have reported another strong quarter as U.S. consumers continue to pay bills and businesses invest in AI.News4Jax · 13 Oct, 14:29

In this story: JPMorgan Chase · Citigroup · Wells Fargo · Goldman Sachs · Jamie Dimon · Wall Street · United States

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