October 17, 2017 / 4:53 PM / 10 months ago

Factbox: U.S. banks top Wall Street estimates despite trading slump

REUTERS - All six big U.S. banks reported third-quarter earnings that topped Wall Street estimates as strength in their lending and advisory businesses and gains from higher interest rates helped them cushion a blow from a slump in bond trading.

Goldman Sachs, the last among the six to report, said private equity investments and higher fees from dealmaking helped power its earnings beat.

Rival Morgan Stanley smashed Wall Street expectations on strong revenue from its wealth management business.

A snapshot of third-quarter earnings for the six largest U.S. banks:

Morgan Stanley:

• EPS (beat) - 88 cents vs est 81 cents

• Revenue (beat) - $9.20 bln vs est $9.01 bln

• Story - reut.rs/2hL5PjC

• Helped by:

- Record revenue from wealth management business, up 8.7 pct to $4.22 bln

- Investment banking revenue rose 12.7 pct to $1.38 bln

• Hurt by:

- Bond trading revenue fell 20 pct to $1.2 bln

• Executive comment:

- Chief Executive James Gorman:

“Our third quarter results reflected the stability our wealth management, investment banking and investment management businesses bring when our Sales and Trading business faces a subdued environment”

Goldman Sachs:

• EPS (beat) - $5.02 vs est $4.17

• Revenue (beat) - $8.33 bln vs est $7.54 bln

• Story - reut.rs/2ggwrc4

• Helped by:

- Strength in investment banking and lending business

- Smaller-than-expected decline in bond trading revenue

• Hurt by:

- Bond trading revenue fell 26 pct

• Analyst comment:

- Chris Kotowski, Oppenheimer:

“After two quarters in a row severely missing Wall Street’s bond trading estimates, Goldman’s 26 pct decline did not look so bad.”

“While we did not see a sharp rebound in (bond) trading, one can, at a minimum, say that this quarter Goldman looked pretty much like everyone else,” Kotowski wrote in a note

JPMorgan Chase & Co


Bank of America:

Wells Fargo & Co :

Compiled by Aparajita Saxena and Nikhil Subba in Bengaluru

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