Morgan Stanley leads profit gains in US lenders
Morgan Stanley, Bank of America Corp. and Wells Fargo & Co. would lead the six biggest lenders in the United States in reporting a jump in profits. The profit increase had shocked some investors who were fixated on a fall in selling and mortgage lending.
According to the analysts' estimates compiled by Bloomberg, JPMorgan Chase & Co., Citigroup Inc. and Goldman Sachs Group Inc. reported a 7.8% decrease in profit. The three banks probably posted a combined third-quarter earnings of USD8.64 billion or 14% more than a year earlier. Five of the six firms had compressed more earnings from each USD1 of income as they benefited from total cost cuts and a more powerful US economy.
According to Drexel Hamilton analyst David Hilder, "I see companies that are improving their profitability. Investors may be caught off guard if individual analysts or the market have been too focused on lower fixed-income trading revenue or mortgage refinancing revenue."
Join the Conversation