The big banking giants just dropped their Q3 numbers, and the results are giving a serious case of 'mixed vibes.' While most of the street expected a smooth ride, the data shows some heavy hitters struggling to keep up with the forecast.
The JPMorgan Miss
JPMorgan, the largest bank in the world by market cap, took an L this round. They reported earnings per share (EPS) of $5.57, missing the $5.90 target. Their $50.91 billion revenue also came in below the $51.22 billion expectation. The main culprit? Fixed income trading fell short by about $550 million, and expenses were roughly $90 million higher than predicted. Real talk: watching costs grow at 12% while revenue only climbs 8% is a major red flag for investors.
The Goldman Sachs Win
On the flip side, Goldman Sachs absoluteley ate. They dropped $18.68 billion in net revenue, beating estimates by nearly $2 billion. The secret sauce was their equities trading division, which saw revenue skyrocket 72% from last year to $6.44 billion—crushing expectations by over $1.4 billion.
Citigroup also posted a W, beating both EPS and revenue forecasts. Wells Fargo had a mid performance, barely edging out EPS expectations but missing the mark on total revenue.
Why it matters
JPMorgan CEO Jamie Dimon is playing it cautious, warning that if the Fed hikes interest rates again—which traders think is likely in December—financial pain for everyday Americans is going to intensify. With Bank of America and Morgan Stanley set to report tomorrow, the market is bracing for more insight into where the economy is headed.
