US banks report mixed results as JP Morgan cuts buybacks

US banks opened the earnings season with mixed results. JP Morgan reported earnings of $5.57 per share, missing the expected $5.92, and drastically reduced share buybacks from $6.7 billion in Q2 to approximately $1 billion. In contrast, Goldman Sachs beat expectations with $17.01 per share versus the $12.82 forecast, driven by nearly $600 million in incentive fees from wealth management, largely from client investments in SpaceX following its IPO. Goldman's equity trading revenue grew 72% year-over-year due to high demand for margin financing. Citigroup saw earnings per share rise by 27% and posted its highest Q3 revenue in over ten years, making it the best performer among the major banks with over 10% returns year-to-date. Wells Fargo noted that despite economic uncertainty, consumers are spending more, credit defaults are low, and deposit accounts are growing. However, bank stocks faced pressure due to fears that current conditions represent peak profitability. Bank of America is required to pay a $1.2 billion fine for money laundering and sanctions violations. New York Fed President John Williams stated that a rate hike is expected this year but likely not in 2027, which helped lift Wall Street from lows. The 10-year US yield stood at 5.21%.