Citigroup and JP Morgan both reported better than expected earnings as the US bank reporting season got underway, but scandal-ridden Wells Fargo disappointed again.
Bumper numbers had been predicted due to a bounce in trading following Donald Trump’s election as US President and a recent US interest rate.
Citigroup’s first quarter earnings jumped 17% to US$4.1bn on the back of higher revenues and lower credit costs, while expenses remained largely unchanged.
Growth in international clients helped revenues overall rise by 3%, with markets and banking revenue 16% higher at US$9.1bn.
JP Morgan buoyed by trading
JP Morgan also saw strong growth at its markets and trading arms as net profits rose 17% to US$6.45bn from US$5.52bn.
Investment bank revenues overall rose by 17% to US$9.5bn with earnings up 64% on a year ago, though they were slightly down on the very strong end to last year.
Wells Fargo & Co (NYSE:WFC) has been wrestling with the scandal of the sales tactics employed by its ex-staff.
It has already clawed back millions in bonuses from former chief executive John Stumpf and ex-head of community banks Carrie Tolstedt.
Earnings in the three months to March were unchanged from a year ago at US$5.46bn, while revenues slipped to US$22bn from US$22.3bn.
Shares in the San Francisco-based bank fell 2.3% to US$51.90.