Big Banks Q3 Earnings Roundup: JPM, C, WFC

Q3 earnings season kicked off in a big way this week, and several of the world’s largest banks released their most recent reports before the market opened on Friday morning. Here’s a round-up of the latest earnings data from Citigroup C, JPMorgan Chase JPM, and Wells Fargo WFC.

More Good News Than Bad

While there wasn’t any absolutely spectacular news from these big banks, we still saw some pretty solid results.

JP Morgan posted the biggest positive earnings beat, with EPS coming in at $1.58 versus the Zacks Consensus Estimate of $1.40. JP Morgan has now surpassed earnings expectations by an average of nearly 9% in each of the trailing four quarters.

The company also posted revenues of $25.51 billion, which was well ahead of our consensus estimate of $24 billion. Improved fixed income and equity trading revenues, higher mortgage banking fees and growth in investment banking income drove the results as did higher net interest income, perhaps attributable to the rise in loan supported top line (also read: JPMorgan Q3 Earnings Easily Top on Solid Trading & Lending).

Citigroup also came in ahead of expectations; it posted earnings of $1.24 per share on $17.76 billion in revenue, which beat our consensus estimates of $1.16 and $17.38 billion, respectively. Revenues from fixed income markets grew 35% and investment banking gained 15%, while adjusted net income fell 8% to $3.84 billion (also read: Citi Beats on Q3 Earnings Estimates).

Finally, controversy-riddled Wells Fargo (WFC) also reported Friday morning. The company posted earnings of $1.02 per share, which beat the Zacks Consensus Estimate by a penny. Revenues came in at $22.2 billion, which was better than our consensus estimate of $22.02 billion (also read: Wells Fargo Beats Q3 Earnings on Higher Revenues).

Wells Fargo’s new CEO Tim Sloan will still face an uphill battle, and his company’s fraudulent account-opening scandal is certainly not going anywhere anytime soon. Nevertheless, Friday’s positive results will provide some comfort for the company and its investors.

All three stocks opened higher, with JPM and C gaining more than 2% and WFC up 1%, but they’ve been slumped back down throughout the day. Friday’s morning gains were basically wiped out.

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