JPMorgan Chase, the largest U.S. bank by assets, reported its third-quarter earnings on Tuesday, revealing a rare miss on earnings per share and revenue expectations. The bank posted earnings per share of $5.57, falling short of the anticipated $5.90, and recorded revenue of $50.91 billion, below the $51.22 billion expected.
Within JPMorgan's report, its fixed income trading division brought in $5.4 billion, missing estimates by approximately $550 million. The bank also saw its expenses grow 12% over the past 12 months, while revenue increased by only 8% during the same period, a discrepancy that could concern investors.
JPMorgan CEO Jamie Dimon issued a warning, stating that the U.S. would experience worsening financial pain if interest rates climb by another percentage point. Traders are reportedly anticipating the Federal Reserve to implement another quarter-point rate hike in December.
In contrast, Goldman Sachs exceeded earnings expectations, generating $18.68 billion in net revenue, nearly $2 billion more than analysts predicted. This performance was significantly boosted by its equities trading division, which saw revenue jump 72% year-over-year to $6.44 billion, exceeding estimates by about $1.42 billion.
Citigroup also reported positive results, with earnings per share of $2.85 surpassing the expected $2.66 and revenue of $23.85 billion slightly beating the $23.72 billion forecast.
Wells Fargo presented a mixed financial picture. The bank’s earnings per share of $1.87 edged out expectations of $1.85, but its revenue of $21.87 billion fell short of the $22.3 billion anticipated.
Bank of America and Morgan Stanley, the remaining two of the nation's six largest banks, are scheduled to release their third-quarter earnings on Wednesday.