Wall Street had one of its most profitable quarters ever, based on the earnings of four of the biggest US banks, as the companies were helped by a flurry of deal-making, soaring stock prices and a global economy that remains resilient amid tariffs and geopolitical upheaval.
Despite the strong earnings reported on Tuesday by JPMorgan Chase, Citigroup, Wells Fargo and Goldman Sachs, bank executives expressed various degrees of caution about the markets and the economy, including worries that asset prices in some markets were overinflated.
“While there have been some signs of a softening, particularly in job growth, the US economy generally remained resilient,” said Jamie Dimon, chairman and CEO of JPMorgan Chase, in prepared remarks. “However, there continues to be a heightened degree of uncertainty stemming from complex geopolitical conditions, tariffs and trade uncertainty, elevated asset prices and the risk of sticky inflation.”
JPMorgan Chase reported a profit of US$14.39 billion, or US$5.07 a share, up 12 per cent from a year earlier. The other big banks fared just as well or better. Wells Fargo earned US$5.59 billion for the quarter, up 9 per cent from a year earlier.
Citigroup’s third-quarter profit was US$3.75 billion, up 16 per cent, and Goldman Sachs posted a 37 per cent profit jump to US$4.1 billion.
JPMorgan’s consumer banking division had a particularly strong quarter, partly driven by its credit card business. The bank saw consumers spend more, borrow more and be willing to carry balances on their cards for longer.
Other banks also reported strong consumer spending, including Wells Fargo, which said credit and debit card usage rose across all demographics. Citigroup also saw robust spending on its cards. None of the banks added significant sums to loan-loss reserves in the quarter.
