US bank shares fall despite JP Morgan, Citigroup and Wells Fargo beating analyst expectations

William Turvill
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Wells Fargo To Shed 500 Jobs In Mortgage Unit
Goldman Sachs, Morgan Stanley and Bank of America report next week (Source: Getty)

Shares in Wells Fargo, JP Morgan Chase and Citigroup are all down in morning US trading, despite the banks beating analyst expectations with their second quarter earnings.

JP Morgan reported revenues of $26.4bn, ahead of a consensus forecast of $25bn, despite trading being hit by low volatility. Its earnings per share came in at $1.82, ahead of an expected $1.58.

Citigroup also beat forecasts, as its trading held up better. The firm also reported loans growth.

Wells Fargo reported a net income of $5.8bn for the quarter, up five per cent year-on-year. Earnings per share were reported at $1.07, ahead of a consensus expectation of $1.01. The firm’s revenue, meanwhile, came in at $22.2bn, flat on the same period last year and below expectations of $22.5bn.

Wells Fargo, the only bank to miss revenue expectations, saw its shares fall 2.5 per cent to $54.22 in early trading.

JP Morgan’s were down two per cent to $91.54 at the same time, while Citi’s had fallen one per cent to $66.44.

Meanwhile, shares of the other big three banks – Goldman Sachs, Morgan Stanley and Bank of America – fell in morning trading ahead of their earnings figures due next week.

Read more: What to expect from US bank second quarter earnings figures