Major US banks report mixed third-quarter results as JPMorgan misses estimates

JPMorgan Chase, Goldman Sachs, Wells Fargo, and Citigroup reported third-quarter results on Tuesday, producing a mixed opening to bank earnings season. JPMorgan posted a profit of $15.3 billion, or $5.57 a share, up from $14.4 billion or $5.07 a share a year earlier. The figure missed analysts' expectations of $5.93 a share. Revenue rose 8 percent to $50.17 billion, short of the $51.23 billion forecast. The bank raised its net interest income guidance for 2026 to $106.2 billion while increasing full-year expense guidance to $108.6 billion.

Goldman Sachs reported a profit of $5.29 billion, or $17.01 a share, a 29 percent increase from a year earlier and well above expectations. Net revenue reached $18.68 billion. Equities trading and investment banking fees drove the result. Investment banking fees rose 21 percent to $3.22 billion. Fixed-income trading was a relative weak spot. Goldman shares rose in premarket trading. Citigroup said profits jumped 40 percent from a year earlier, beating forecasts, with higher revenue from investment banking and wealth management. Credit-card profits were flat. Citi shares dipped slightly.

Wells Fargo posted a profit of $5.95 billion, or $1.87 a share, beating forecasts. Revenue fell short of estimates at $21.87 billion. The bank has seen profits climb after regulators removed an asset cap imposed following its sales-practices scandal. All four banks noted volatility in the bond market over the summer as investors focused on government spending and inflation. Executives warned that higher rates and inflation could pressure results in coming quarters.

The results arrive as the Federal Reserve continues to manage the path of interest rates. Banks have benefited from higher net interest margins in recent years, but the trajectory of rates remains uncertain. Trading desks delivered strong results at Goldman while JPMorgan's overall numbers reflected more modest trading contributions relative to expectations. Investment banking activity has recovered from earlier lows, supporting fee income across the group. Consumer spending has remained resilient, supporting credit-card and lending businesses, though banks have increased provisions in some categories.

Investors reacted with caution. JPMorgan's miss marked a rare shortfall after a long streak of beating estimates. Goldman and Citi's beats provided offsetting strength. The broader market watched the reports for signals on the health of corporate activity and household finances. Bank stocks have faced skepticism in recent surveys of institutional investors even as reported profits remained solid. The coming days will bring results from Bank of America, Morgan Stanley, and other firms, offering a fuller picture of third-quarter performance across the sector. Higher expense guidance at JPMorgan and warnings about inflation suggest banks are preparing for a more challenging operating environment even as current earnings remain positive.