Wall Street Makes Bank Run Following Quarterly Earnings Releases
Mixed reception to bank earnings on Friday.
JPMorgan Chase & Co. (JPM) - Get JP Morgan Chase & Co. Report were volatile in spite of the fact that the biggest U.S. bank reported second-quarter net income of $8.32 billion, or $2.29 a share, up from the $7.03 billion, or $1.82 a share, it earned a year ago. Analysts were expecting earnings of $2.22.
Shares finished slightly lower.
Lower taxes helped boost the bank's bottom line as the company reported that its tax bill fell 17% year over year. JPMorgan's tax rate was 21% this year compared to 28% last year.
Meanwhile, beleaguered San Fransisco-based bank Well Fargo & Co (WFC) - Get Wells Fargo & Company Report dropped 2% Friday after reporting a 12% decline in profit. The bank reported a profit of $5.19 billion, 98 cents a share, down from $5.81 billion, or $1.07 a share, a year earlier.
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Analysts were expecting a profit of $1.12 a share. Revenue also fell 3.1% at Wells Fargo to $21.55 billion.
Earlier this year the bank adjusted its own earnings guidance down $800 million after reaching a $1 billion settlement with regulators after improperly charging customers in its mortgage and auto loan businesses.
Shares of Citigroup Inc. (C) - Get Citigroup Inc. Report fell 2.2% after reporting mixed results. The bank was able to top profit expectations but failed to match on revenue.
Citigroup reported a 16% increase in second-quarter profit, earning $4.49 billion, or $1.63 a share. Last year, the company earned $3.87 billion in the quarter. Analysts were expecting the bank to report earnings of $1.56 a share.
While revenue did increase 2% to $18.47 billion, Wall Street was expecting the bank to report revenue of $18.51 billion.
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