JPMorgan Chase had a surprisingly good third quarter, sending its stock price up nearly 5%. The bank’s net interest income (NII) – the money they make from loans and investments – actually increased by 3%, exceeding analysts’ expectations. This was fueled by higher investment banking fees, which helped boost earnings per share to $4.37, well above Wall Street’s predictions. Overall revenue jumped 7% to $42.65 billion.
Wells Fargo also saw its stock climb, up 6%, despite a slightly worse-than-expected performance. Their NII dropped by 11%, but earnings per share still beat expectations at $1.42. While their Corporate and Investment Banking division remained flat, their Wealth and Investment Management division saw a 5% increase. However, overall revenue came in at $20.37 billion, falling short of forecasts.
These strong results from two of America’s biggest banks suggest that the financial sector might be weathering the economic storm better than anticipated.
