US Banks Reported Mixed Profits in the Second Quarter

JPMorgan Chase posted a record profit

JPMorgan Chase (JPM) reported an 18% higher profit than analysts’ expectations in the second quarter to $8.32 billion. According to Barclays analysts, the bank exceeded analysts’ estimates for the 14th straight quarter. The bank’s trading revenues rose 13% to $5.4 billion, while the loan growth rose 4% to $948.4 billion. The bank’s yield on interest-earning assets was at 2.46%.

US Banks Reported Mixed Profits in the Second Quarter

Citigroup reported weaker-than-expected quarterly revenue

Citigroup (C) reported revenues of $18.47 billion for the second quarter—compared to the expectations of $18.51 billion. The bank’s EPS was $1.63—compared to the forecast of $1.56. For the second quarter, the deposits were below the estimate of $1.009 trillion at $996.7 billion. The rise in the net income was driven by a lower effective tax rate, which fell to 24% from 32%.

Wells Fargo reported weak second quarter results

Wells Fargo (WFC), which has been under pressure due to multiple probes into its sales practices, reported revenues of $21.55 billion in the second quarter—compared to analysts’ expectations of $21.677 billion. The bank also reported a lower net income of $5.19 billion—compared to expectations of $5.47 billion.

Strong growth in US consumer debt

Fed data showed that US consumer debt increased by $24.6 billion in May—the most in six months. The figures were boosted by more credit card debt and non-revolving loans. The increased debt indicates that consumers are spending freely, which could be a big positive for US banks (VFH) (XLF).