JPMorgan, Goldman Sachs, Citigroup and Wells Fargo post strong profits, but warn rising interest rates and ‘sticky inflation’ will bite
Source: Fortune ·
Wall Street’s biggest banks reported a strong Q3 as businesses keep pouring money into AI and consumers face higher prices
From the source
Wall Street’s biggest banks reported another strong quarter on Tuesday, as the U.S. consumer continues to pay their bills and businesses keep investing heavily in AI. But even as JPMorgan Chase, Citigroup, Wells Fargo and Goldman Sachs reported higher profits from a year ago, they warned about the long-term impact of higher interest rates as well as the impact higher prices could have on the consumer if inflation is not brought under control. 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, in the same period a year earlier. The results missed analysts’ expectations, with Wall Street looking for the bank to earn $5.93 a share. It was a rare earnings miss for JPMorgan and its CEO, Jamie Dimon. The last time the bank missed analysts’ expectations was nearly three years ago. The investment banking division of JPMorgan was to blame this quarter, as its fixed income trading desks saw a slowdown in activity compared to…