US, solid results for JPMorgan and the big banks

Revenues increased by 9% to EUR 47.1 billion. "All divisions performed well, many assets seem to have entered bubble territory.

But those prices are fuelling investment banking, equities and wealth management," commented Jamie Dimon, CEO. "Although there have been some signs of a slowdown, particularly in employment growth, the US economy has remained generally resilient," he said. "However," he added, "there continues to be a high degree of uncertainty stemming from complex geopolitical conditions, tariffs and trade uncertainty, high asset prices and the risk of sticky inflation.

Goldman Sachs Group reported an across-the-board improvement in all segments. Net income rose to $4.098 billion, $12.25 per share, 37% higher than in the same period last year and 10% higher than in the previous three months. Revenues increased 20% year-on-year to $15.184 billion in Q3 2024, while the increase was 4% from the previous quarter.

XTB's Kathleen Brooks pointed out that the prices of the major US banks are not moving "in one lump," noting that Goldman, just like JPMorgan, is trading at a slightly higher multiple than the others. The weakness in Goldman's shares yesterday "suggests that much of the good news has already been discounted. However, the strength of the results indicates that the downside is not justified by the fundamentals."

Wells Fargo posted net income of $5.59 billion, or $1.66 per share, in the third quarter. This compares with net income of $5.11 billion, or $1.42 per share, for the same period in 2024. Between July and September, sales also amounted to $31.91 billion.

Citigroup's results were buoyed by increased revenues in its major divisions, including trading, investment banking and wealth management. Net income rose 16 per cent year-on-year to $3.8 billion. Revenues rose to $22.1 billion, in line with expectations. "When you look at the equity markets, I think it's hard not to think that there may be some instability in a number of areas, we'll have to see how that plays out," said Mark Mason, cfo of Citigroup.