US big bank's 3Q third-quarter see mixed start: JPMorgan and Citi beat expectations, but Goldman disappoints

The third-quarter earnings season for big US banks got off to a mixed start on Tuesday, with JPMorgan Chase & Co (NYSE:JPM) and Citigroup Inc (NYSE:C) beating profit expectations, but Goldman Sachs Group Inc’s (NYSE:GS) numbers disappointing.

JPMorgan reported earnings per share for the quarter ended September 30 of $2.68 per share, compared with or $2.34 per share a year ago and above forecasts for $2.45 per share.

Revenue at three of the bank’s four main businesses rose, with commercial banking the exception hampered by lower interest rates.

JPMorgan chief executive officer Jamie Dimon said in a statement: “The consumer remains healthy with growth in wages and spending, combined with strong balance sheets and low unemployment levels.”

“This is being offset by weakening business sentiment and capital expenditures mostly driven by increasingly complex geopolitical risks, including tensions in global trade, he added.

Citigroup beat more modest

Citigroup reported a 6% rise in its third-quarter profit driven by growth in its investment banking business and an exceptional tax benefit.

Its adjusted quarterly earnings rose came in at $1.97 per share, above forecasts for $1.95 per share and up from $1.73 per share.

Citigroup’s total revenue rose by around 1% to $18.57 billion against forecast of $18.55 billion.

Chief executive Michael Corbat said the bank was operating in “an unpredictable environment” but that its global consumer banking franchise performed well on an underlying revenue growth basis.

Goldman misses forecasts

But Goldman Sachs reported a 27% slump in quarterly profit hit by lower fees from advising on deals and weakness in underwriting.

The bank’s earnings per share in the quarter ended September 30 fell to $4.79, down from $6.28 a year earlier, and below forecasts for $4.81 per share.

Goldman’s total net quarterly revenue fell by 6% to $8.32 billion, just below estimates for $8.31 billion.

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Story by ProactiveInvestors