Wall Street is struggling, but Main Street is strong, analyst sums up banks results

Record ID: 1693137

  • Title: Wall Street is struggling, but Main Street is strong, analyst sums up banks results
  • Date: 14th October 2022
  • Summary: NEW YORK, NEW YORK, UNITED STATES (OCTOBER 14, 2022) (REUTERS) (SOUNDBITE) (English) TACTICAL INCOME, FOUNDER AND CEO, JEFF TOMASULO, SAYING: "But the most interesting part that I think we should take away from this, and it's something that we have to watch, it is so critical, is the consumer. And we saw this in Citibank's earnings, right? When they talked, and especially when you were listening to the conference call, you heard them talk about their credit cards and their products, right? Their lending products that have increased tremendously over the last quarter. And it's showing us, and we heard it out of JPMorgan, that the consumer is still spending money right now. Is that because wages are increasing, right? And they're not feeling this inflationary pressures that we've seen? But to me, I always said the really the last shoe to drop, and that could really put a dagger in the overall market and to a lot of these earnings, especially consumer stocks, would be if the consumer stopped spending, right? I mean, we're a consumer society. And I think that was the biggest takeaway from all of these earnings that came out of these banks today."
  • Embargoed: 28th October 2022 20:07
  • Keywords: Bank of America Citigroup JPMorgan Chase Morgan Stanley Well Fargo economy
  • Location: NEW YORK, NEW YORK, UNITED STATES
  • City: NEW YORK, NEW YORK, UNITED STATES
  • Country: US
  • Topics: Company News Markets,Economic Events,United States
  • Reuters ID: LVA004233214102022RP1
  • Aspect Ratio: 16:9
  • Story Text: Major U.S. banks reported quarterly results on Friday (October 14).
    JPMorgan Chase said it managed a smaller-than-feared drop in third-quarter profit as a rise in interest income cushioned a blow from higher loan loss provisions and a slump in deal making due to a worsening economic outlook.
    Citigroup beat estimates as its lending business benefited from a series of interest rate hikes by the Federal Reserve and offset weakness in other divisions such as investment banking and trading.
    Wells Fargo reported a 31% decline in third-quarter profit as the bank racked up costs related to a fake accounts scandal and boosted its loan loss reserves in preparation for a potential slowdown.
    The bank posted $2 billion in operating losses related to litigation, customer remediation, and regulatory matters associated with the now six-year-old scandal over its sales practices.
    Morgan Stanley recorded a 30% slump in third-quarter profit, missing analysts' estimates as a slowdown in global deal making hurt its investment bank business.
    The outlook for deals has steadily worsened this year as the U.S. Federal Reserve raised benchmark rates to tame inflation, clouding the economic growth forecast, while the highs of a record last year drew tough comparisons.
    Bank of America is scheduled to report earnings on Monday (October 17) and Goldman Sachs on Friday (October 21).
    (Production: Aleksandra Michalska)
  • Copyright Holder: REUTERS
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