Bank Stock Roundup: Q3 Earnings Season Unfolds, JPMorgan, BofA & Citi Top Estimates
Zacks Investment Research | Oct 17, 2019 09:47PM ET
Most banks that reported third-quarter 2019 results this week managed to record bottom-line growth on higher fee income, driven by fixed income and equity trading revenues resulting from strong client activities. Further, remarkable investment banking performance, aided by underwriting and advisory business, was on the upside.
In addition, mortgage banking revenues rebounded on lower rates aiding banks’ performance. Further, escalation in loans and deposits acted as tailwinds.
However, net interest margin was disappointing, adversely impacted by the Fed’s recent rate cut. Also, an overall rise in non-interest expenses, due to high spending on technology and personnel, and other market development initiatives, was an undermining factor. Further, provisions soared.
Nevertheless, banks continued with their restructuring and streamlining initiatives. Moreover, legal expenses remained manageable.
(Read: Zacks Investment Research
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