Three of the six biggest U.S. banks kicked off the earnings season on Friday, reporting profits that topped Street estimates but failed to enthuse investors who were looking for better results and sunnier outlook.
(Reuters) – Three of the six biggest U.S. banks kicked off the earnings season on Friday, reporting profits that topped Street estimates but failed to enthuse investors who were looking for better results and sunnier outlook.
Although the banks started to see some long-awaited benefits of higher interest rates, most warned of a slowdown in mortgage lending.
“Mortgage banking will continue to be weak, relative to year-ago periods, largely driven by the fact that interest rates are moving higher and less people are refinancing their homes,” said Shannon Stemm, an analyst with Edward Jones.
“That is a trend that’s going to continue.”
A snapshot of the earnings of the three banks that reported on Friday:
JPMorgan Chase & Co (JPM.N)
Wells Fargo & Co (WFC.N):
Citigroup (C.N):
Goldman Sachs, Morgan Stanley and Bank of America are scheduled to report quarterly earnings next week.
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