Wall Street’s earnings split: Goldman’s $18.7 billion blowout quarter—and why JPMorgan and BofA fell short
JPMorgan announced its first earnings miss in almost three years, while Goldman delivered its second-highest quarterly net revenue ever. A $1.2 billion regulatory penalty weighed on Bank of America's already lackluster quarter.
This week on Wall Street, the quarterly earnings of banks were varied, with some experiencing blowouts and others missing expectations. Goldman Sachs reported its second-highest quarterly net revenue ever at $18.68 billion, with earnings per share of $17.01, far exceeding analysts' estimates. Meanwhile, JPMorgan Chase and Bank of America fell short of their projections, with JPMorgan's net revenue falling short by $51.22 billion and Bank of America's profit dropping by 17%.
JPMorgan's earnings were influenced by a slump in fixed-income trading and higher expenses, while Bank of America's results were marred by a $1.2 billion penalty from regulators. Despite these setbacks, Citi CEO Jane Fraser and Wells Fargo CEO Charlie Scharf maintained an optimistic outlook, pointing to a resilient U.S. consumer despite higher rates and persistent inflation.
Analysts, however, remain cautious, questioning whether the consumer's spending will continue to hold up as banks have suggested.
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