JP Morgan, City and Wells Fargo surprise the market with their third quarter results

Three of the main US banks have turned Wall Street upside down with its good third quarter results. The figures presented this Friday by JPMorgan, Citigroup and Wells Fargo have helped the US market to put aside the falls of the last sessions and rebound strongly.

JP Morgan Chase gained 8.830 million dollars (7.240 million euros) in the last three months or 2.34 dollars per share, above the 2.25 dollars expected by analysts from Reuters, which is 24% that in the same period last year. The bank billed 6.5% more in this period, to total 27,260 million dollars (23,551 million euros). On the other hand, expenses have advanced by 7.2% to 15,623 million dollars (13,497 million euros). Although costs have increased more than revenues, the operating result has posted an improvement due to the fact that the bank has approved provisions for credit losses 34.7% lower, up to 948 million dollars (819 million euros).

In spite of everything, the president and CEO of the bank, Jamie Damion, sent a warning to the market: "The US and global economies continue to show strength despite the increase in political and economic uncertainties, which at some time in the future will have effects negative in the economy. "

Citi's results have also exceeded analysts' expectations. The US bank increased its profit by 11.8% between June and September, to 4,622 million dollars (3,995 million euros). This means a profit per share of $ 1.73, above the 1.69 expected by Reuters analysts. However, revenues were somewhat below expectations, reaching 18,390 million dollars (15,852 million euros), which represents a slight decrease of 0.2% that was invoiced a year ago. Its revenues totaled 18,339 million euros (15,852 million euros), which represents a slight decrease of 0.2% compared to 18,419 million dollars (15,921 million euros) that was invoiced a year ago. Specifically, the 2% growth recorded by its global retail banking business was finally offset by a 2% decline in institutional customer activities and a 5% drop in its corporate division.

The CEO of Citi, Michael Corbat, has remarked that these results show a "solid" growth in year-on-year revenue in most of his businesses and highlighted that the increase in his loans and deposits at the same time he continues to "manage" Prudently, the risks, as shown by the stability of the credit portfolio ".

Finally, Wells Fargo expanded its earnings by 32% in the third quarter, to 6,077 million dollars, that is, 1.13 dollars per share, also slightly surpassing analysts' forecasts. The turnover in this period did not change practically compared to a year ago, adding an income of 21,849 million dollars.

The bank has been affected by scandals such as the opening of millions of false accounts, two years ago, which led to the resignation of its former CEO, John Stumpf, and more recently for allegedly misrepresenting the quality of loans used in securities backed for residential mortgages. The bank used to be one of the most growing year after year in the US, but the Federal Reserve froze its expansion last February until it improves its management, after noting a "generalized and persistent misconduct". At the end of September, Wells Fargo CEO Tim Sloan announced a staff cut of between 5% and 10% over the next three years to make the company more efficient and digitized.