Investing.com - A trio of big banks reported mixed results Friday, but shares of JPMorgan Chase, Citigroup and Well Fargo were all higher in premarket trading.
JPMorgan Chase (NYSE:JPM) reported quarterly profit and revenue that topped analysts’ expectations. Citigroup (NYSE:C) also beat profit forecasts, but its revenue was a tad below expectations. And Wells Fargo (NYSE:WFC) missed on earnings estimates, but its revenue topped the consensus estimate.
Bank stocks have been unimpressive over the last three months. The shares looked to be on a comeback as bond yields rose, helping net interest margins, but the bullishness was short-lived as financials joined the broader recent selloff.
JPMorgan said it earned $2.34 cents per share in the third quarter. On average, analysts predicted that JP Morgan would earn $2.27 per share.
Shares of the Dow component were up about 1.8% in premarket trading, compared with a gain of about 2.5% before the results were released.
The bank posted managed revenue of $27.8 billion, which was above forecasts. Wall Street was looking for revenue of $27.58 billion.
Services revenue gained thanks to higher interest rates, which helped counter flat investment banking revenue. The company also benefitted from lower taxes, noting its effective tax rate was 21.6% for the quarter, compared to 29.6% in the year-ago period.
Citi reported earnings per share of $1.73 on revenue of $18.39 billion. Analysts polled by Investing.com expected a profit of $1.67 a shares on revenue of $18.45 billion.
The stock dipped immediately in premarket trading after the numbers came out, but recovered strongly, climbing around 3%.
With revenue basically flat from the year-ago period, Citi's profit beat was driven by a lower tax rate. Its effective tax rate fell to 24% in the third quarter from 31% in the same quarter a year ago.
Wells Fargo reported earnings per share of $1.16 on revenue of $21.94 billion. The Street was looking for EPS of $1.19 on revenue of $21.82 billion.
That compared to EPS of $1.04 on revenue of $24.51 billion in the same period a year earlier. The rise in profit in the year-ago period was evidence that the company had made some progress in its efforts to cut costs, although a drop in total loans offset some of those gains.
The bank, which has been hit by scandal recently, also noted it is making progress in its commercial banking segment and in "customer remediation."
Shares of Wells Fargo held up in premarket, rising 1.5%.
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