REUTERS: Three big U.S. banks reported strong earnings on Tuesday, even as warning signs emerged that the playing field is beginning to tilt against the financial industry.
Trading volumes have dropped at large U.S. banks as a tit-for-tat tariff war between Beijing and Washington has kept investors on edge. And even as investors have been concerned over the impact of the U.S.-China trade spat on global growth, JPMorgan Chief Executive Officer Jamie Dimon remained bullish about the economy. The bank's performance is often considered a bellwether for the health of the U.S. economy.
Analysts expected earnings of US$2.51 per share and revenue of US$28.90 billion, according to IBES data from Refinitiv. Wells Fargo is also being squeezed by the changing interest-rate environment. Its net interest margin dropped 11 basis points to 2.82per cent in the most recent quarter. The bank reported non-interest expense of US$13.4 billion, down US$533 million from a year earlier, while total loans rose 0.6per cent to US$949.88 billion.
Institutional client revenue, which includes trading, slipped 3per cent, while investment banking revenue was down 9per cent. However, revenue from the bank's investing and lending business rose 16per cent, its highest quarterly performance in eight years.
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