JPMorgan Chase, Citigroup, Wells Fargo beat estimates, mostly on loan growth and higher interest rate. Elly Park reports.
Three big U.S. banks kicked off the second-quarter earnings season. The biggest bank by assets, JPMorgan Chase, came in with a better-than-expected profit on strong loan growth and higher interest rates. But, as its loan book expanded, the bank also set aside more money for delinquencies. And its trading revenue was a dark spot as volatility hit multiyear lows. At Citigroup trading revenue held up better than the company's forecast. Plus, loans grew. As a result, the bank's quarterly revenue and profit beat estimates. Wells Fargo posted a better-than-expected profit as well. But revenue fell short of expectations. The largest U.S. residential mortgage lender recorded a fall in mortgage banking income. Shares of all three banks - JPMorgan Chase, Citigroup, and Wells Fargo were down in early trading.