Published: Fri, October 13, 2017
Finance | By Loren Pratt

Cash equities, underwriting help Citi to Q3 earnings beat

Cash equities, underwriting help Citi to Q3 earnings beat

"We all would anticipate greater loan growth if there was a bit more clarity as far as you know when or if tax reform was going to pass", Gersprach said.

JPMorgan's markets revenue is likely to drop again in the fourth quarter because the year-ago period was strong, Chief Financial Officer Marianne Lake said on a conference call with analysts.

JPMorgan Chase reported third-quarter earnings and revenue that beat analyst expectations. Total revenue, meanwhile, rose about 2 percent to $18.17 billion, topping expectations of $17.90 billion helped in part by an increase in fees earned on share sales at Citi's investment bank and a jump in equity trading.

The shares fell almost 1 percent, but are still up 11 percent this year.

Wall Street banks have been grappling with bond market challenges for most of the past seven years, as client volumes have been depressed for a number of reasons and new regulations have restricted certain activities and made trading more expensive. The trends bode poorly for Goldman Sachs Group Inc GS.N , which has struggled more in bond trading recently than other Wall Street banks.

The first two of the big banks reported earnings on Thursday morning, and all of the major banks are rising following the reports.


Citigroup Inc shares fell $0.34 (-0.45%) in premarket trading Thursday.

"We had revenue increases in numerous products we have been investing in, tightly managed our expenses, and again saw loan growth in both our consumer and institutional businesses". JPMorgan's net interest income, or the difference between what it pays for funds and collects from lending them out, rose 10 percent.

Citi cited "continued growth in loans and assets under management" for the rise, as well as higher interest rates.

Revenue from the North American branded cards business declined 1 percent, even though the company had said that it expected a significant payoff in the last half of this year from earlier investments in its card business with retailer Costco and from its promotion of its Double Cash card.

Analysts on Citi's earnings call questioned when the incentives would end and investors would start to see a return.

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