JPMorgan profit reaches $15.3 billion but earnings fall short of forecasts

JPMorgan Chase reported third-quarter earnings of $5.57 per share on profit of $15.3 billion, below the $5.93 per share analysts expected. Goldman Sachs, Citigroup and Wells Fargo also recorded year-over-year profit gains, with the latter two exceeding Wall Street forecasts.

A year earlier, JPMorgan earned $5.07 per share on profit of $14.4 billion. Its latest quarter included investment securities losses totaling $658 million and expenses that increased 12%. Revenue across its markets businesses advanced 15%, although fixed-income markets revenue dropped 4% against the year-earlier period.

Goldman Sachs earned $17.01 per share, with profit reaching $5.29 billion. Those figures compared with $12.25 per share and $4.1 billion a year earlier. Its equities business generated 72% more revenue than a year before, but revenue from its currencies, commodities and fixed-income operations declined 24% against the second quarter.

Citigroup reported a 40% annual increase in third-quarter profit. Revenue improved in wealth management and investment banking, while the credit card division's profit was unchanged. Wells Fargo earned $1.87 per share on profit of $5.95 billion. Its profits have risen in recent quarters since federal regulators removed an asset cap tied to its sales practices scandal.

Despite the profit gains, the banks warned that higher interest rates could have lasting effects and that unchecked inflation could strain consumers. JPMorgan CEO Jamie Dimon said investment by businesses and spending by consumers supported the US economy, while citing fiscal deficits, inflation, asset valuations, interest rates and geopolitical conditions as risks.