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| US bank gains help steady share markets | |
| (35 minutes later) | |
| Three of the biggest US banks reported strong profits on Friday, helping to steady US share markets. | |
| The gains at JP Morgan Chase, Citigroup and Wells Fargo came despite concerns about rising interest rates and the impact of trade tariffs on business expenses and global growth. | The gains at JP Morgan Chase, Citigroup and Wells Fargo came despite concerns about rising interest rates and the impact of trade tariffs on business expenses and global growth. |
| JP Morgan Chase boss, Jamie Dimon, said issues such as Brexit, trade tensions and rising interest rates pose risks. | JP Morgan Chase boss, Jamie Dimon, said issues such as Brexit, trade tensions and rising interest rates pose risks. |
| But economic data, especially in the US, has remained healthy, he said. | But economic data, especially in the US, has remained healthy, he said. |
| "So far, we still have a strong economy in spite of these increasing overseas geopolitical issues bursting all over the place," he said on a conference call after the earnings release. | "So far, we still have a strong economy in spite of these increasing overseas geopolitical issues bursting all over the place," he said on a conference call after the earnings release. |
| The results appeared to help soothe markets as they opened after steep declines in recent days. | |
| The Dow Jones Industrial Average and S&P 500 both gained more than 1% in morning trade, while the Nasdaq leapt 2.2%. | The Dow Jones Industrial Average and S&P 500 both gained more than 1% in morning trade, while the Nasdaq leapt 2.2%. |
| Result details | Result details |
| The banks are some of the first companies to provide updates to investors as the earnings season gets underway. | The banks are some of the first companies to provide updates to investors as the earnings season gets underway. |
| JP Morgan said overall quarterly profit increased 24% year-on-year to $8.38bn, with especially strong performance in its retail banking unit. | JP Morgan said overall quarterly profit increased 24% year-on-year to $8.38bn, with especially strong performance in its retail banking unit. |
| Overall revenues were up 5% to $27.8bn. | Overall revenues were up 5% to $27.8bn. |
| Rising interest rates can help banks, as borrowing costs for customers rise. But they also pose risks if lending slows. | Rising interest rates can help banks, as borrowing costs for customers rise. But they also pose risks if lending slows. |
| All three banks reported falls in new home loans, as did the regional bank, PNC Financial Services Group. | All three banks reported falls in new home loans, as did the regional bank, PNC Financial Services Group. |
| But Marianne Lake, chief financial officer at JP Morgan, said the rising rates have not troubled the bank, noting strong lending growth overall. | But Marianne Lake, chief financial officer at JP Morgan, said the rising rates have not troubled the bank, noting strong lending growth overall. |
| "The level of rates isn't surprisingly high so from our vantage point we're not seeing anything... that would suggest this is problematic," she told financial analysts. | "The level of rates isn't surprisingly high so from our vantage point we're not seeing anything... that would suggest this is problematic," she told financial analysts. |
| At Wells Fargo, quarterly profits were $6bn, rising by about 32% as the bank took steps to cut costs. | At Wells Fargo, quarterly profits were $6bn, rising by about 32% as the bank took steps to cut costs. |
| The bank - which has been under orders restricting its growth due to a series of earlier scandals - reported revenue of almost $22bn, unchanged from the same period in 2017. | The bank - which has been under orders restricting its growth due to a series of earlier scandals - reported revenue of almost $22bn, unchanged from the same period in 2017. |
| At Citigroup, profits in the period were $4.6bn, up 12% from the third quarter in 2017. | At Citigroup, profits in the period were $4.6bn, up 12% from the third quarter in 2017. |
| The firm's revenues held steady at $18.4bn. The lack of growth, the bank said, was due to earlier sales of some business units. | The firm's revenues held steady at $18.4bn. The lack of growth, the bank said, was due to earlier sales of some business units. |