The big American banks shoot up profits in the third quarter
The quarterly earnings season in the United States It starts with general optimism. The data from the banking sector have exceeded the expectations of analysts, who had shown caution in a scenario conditioned by the tariff war decreed by the White House to the rest of the world. JP Morgan, the largest bank in the United Stateshas exceeded its quarterly profit forecasts by 12% thanks to the stability of consumer spending and higher trading volume.
However, year-on-year yes, that greater brake is detected with a profit of 44,023 million dollars until September, 1% less, while income stabilized at 136,649 million, 1% more. The executive director of JP Morgan, Jaime Dimonhas assured that the economic impact of the tariffs is lower than initially expected, although the final result of the negotiations is not yet known. In fact, it focuses on the greatest degree of uncertainty in the face of “the complex conditions geopolitics and the risk of persistent inflation”.
Among the most significant data, it stands out that the credit losses corresponding to the third quarter, which were 3.4 billion dollars, the highest figure since the first half of 2020. Along the same lines, Wells Fargo has also surpassed market estimates and raised its profitability target after eliminating the asset limit imposed by the Federal Reserve in 2018 following a scandal of fake accounts and bad practices. The third largest US entity It has earned 9.9% more between January and September, totaling 15,171 million dollars, while income rose 5.25% and stands at 21,436 million dollars.
They complete the list Goldman Sachswhich has skyrocketed its profits by 24% during the first nine months of the year, to 12,559 million dollars, in the heat of higher revenues, which are growing by double digits (13% more, to 44,829 million dollars), as well as Citigroup. The largest financial asset company in the world has achieved 16% higher profits with a net profit of 11,835 million. BlackRockfor its part, has experienced a 19% drop in profits with 1,323 million, although the volume of managed assets grows by almost two trillion dollars in the last twelve months and closes September at 13.46 trillion, which leads it to break the record of the previous quarter.
“Despite some strong numbers, Wall Street is not in a festive mood,” said Danni Hewson, director of financial analysis at AJ Bell, referring to to the falls recorded in these values on the stock market. This comes as concerns over rising trade tensions with China push investors to avoid risks. From eToro they explain that the data of the financial sector serve as a thermometer to mark in advance what the investor can expect this season. “This group will provide a read on the situation for American consumers, which comes at a critical time with the delay of many key economic releases due to the government shutdown,” they note.
