Two of Wall Street’s biggest banks kicked off second-quarter results season with a boost to earnings. JP Morgan Chase said that Q2 profit rose 18% as the bank continues to benefit from a strong US economy and the new federal tax law. Citigroup said its Q2 profit rose 16%. Both banks exceeded analysts’ expectations; for Wells Fargo, it was a different story.
JP Morgan Q2 Earnings at a Glance
- Profit: $8.3 billion, or $2.29 a share. Analysts polled by Thomson Reuters had expected earnings of $2.22 a share.
- Trading revenue: $5.4 billion, a 13% increase from $4.8 billion a year earlier.
- Costs: $15.97 billion, an increase from $14.77 billion a year earlier.
- Return on equity: 14% in Q2 compared with 12% a year ago.
Citi’s Q2 Earnings at a Glance
- Profit: $4.49 billion, up from $3.87 billion a year earlier. Per-share earnings were $1.63. Analysts had expected $1.56 per share.
- Revenue: $18.47 billion, a 2% rise from a year ago. Analysts had expected $18.51 billion.
Meanwhile, Wells Fargo reported a profit of $5.19 billion, or $0.98 a share.
That was down from $5.86 billion in the year-ago quarter.
Revenue also fell, to $21.6 billion from $22.2 billion in the second quarter of 2017.
The bank in mid-April adjusted first-quarter earnings down $800 million after paying a $1 billion settlement to regulators over improper charges to mortgage and auto-loan customers.