JPMorgan and Rivals Report Third Quarter Bank Results

Four major US banks JPMorgan Chase, Wells Fargo, Goldman Sachs and Citigroup reported third quarter earnings before markets opened on Tuesday, highlighting deal activity, consumer trends, trading performance and higher expenses amid economic uncertainty.

According to CNBC, executives from the banks addressed artificial intelligence, IPO uncertainty, fuel prices and borrowing costs during earnings calls held between 8:30 a.m. and 11 a.m. ET.

JPMorgan Chase raised its 2026 net interest income guidance to $106.2 billion from a previous $105.5 billion estimate, while increasing expense guidance to $108.6 billion from $107.5 billion, according to the company.

JPMorgan CFO Jeremy Barnum said the bank's deal pipeline remained strong and consumer spending trends were resilient when excluding the impact of higher gas prices.

"delayed rather than canceled." Barnum said.

Barnum explained that some transactions were being postponed as buyers and sellers adjusted to market conditions, while overall deal activity remained supported.

"There are a lot of deals that need to get done that want to get done," Barnum said.

"You know, maybe in moments of a little bit of market turmoil, you see, especially in the capital market space, the gap between buyers and sellers can widen temporarily before we find a new level. So we'll see how it goes. But overall, the conditions remain very supportive." Barnum said.

JPMorgan's quarter was affected by lower fixed income trading revenue and higher expenses. Fixed income trading revenue was $5.4 billion, while companywide expenses reached $27.3 billion, according to CNBC.

Goldman Sachs reported record advisory revenue of $1.65 billion, up 18% from a year earlier, while investment banking fee backlog declined from the second quarter, according to the firm.

Goldman's total revenue reached $18.68 billion, exceeding the LSEG estimate of $16.71 billion. Equities revenue rose 72% year over year to $6.44 billion, while asset and wealth management revenue increased 14% to $5.05 billion.

Goldman Sachs also described its services performance as a strong period for the business.

"standout quarter" Goldman Sachs said in describing its services performance.

Citigroup reported its best third quarter revenue in a decade, with revenue of $23.85 billion and earnings per share of $2.85, both above analyst expectations tracked by LSEG.

Citigroup CEO Jane Fraser attributed the results to the bank's execution strategy and said the company continued to see progress toward its return goals.

"continued discipline and consistent execution of our strategy." Fraser said.

Fraser said Citigroup expected further progress as it increased investments toward its targeted returns.

"We expect to exceed this year's return target, even as we pull forward investments toward our 11-13% near-term goal — the next waypoints on our path to sustainable returns of 14-15%" Fraser said.

Citigroup also reported growth across services and banking divisions, including a 15% increase in services and a 6% rise in its banking division, according to the company.