Wall Street rallies as financial stocks rise with better-than-expected profit and revenue results.
Three of the biggest US banks, JP Morgan Chase & Co, Citigroup and Wells Fargo & Co, reported a fall in profits on Friday, however, producing better-than-expected results. Wall Street responded positively as financial stocks rose.
JP Morgan's assets reported a 7.6% drop in quarterly profit. The New York firm, run by James Dimon, hit off the third-quarter with both revenue and profit far above expectations.
Earnings per share fell from $1.68 to $1.58 as opposed to analysts' expectations of $1.39 earnings per share.
Citigroup Inc, the fourth-biggest bank by assets reported a 10.5% fall in the third-quarter profit and decreased revenue, yet the results were better than what analysts had predicted.
The bank's net income fell to $3.84 billion, or $1.24 per share, in the third quarter ended September 30 from $4.29 billion, or $1.35 per share, a year earlier. Analysts on average had estimated earnings of $1.16 per share.
The San Francisco bank Wells Fargo & Co reported its fourth straight fall in quarterly profit. The bank still posted net income that topped analyst estimates, helped in part by lower than expected loan loss provisions.
Wells Fargo Chief Executive and Chairman John Stumpf stepped down from his job after 34 years with the bank on Wednesday.
Stumpf was under pressure from lawmakers and other critics after employees were found to have created as many as 2 million accounts in customers' names without their consent.
Timothy Sloan, previously chief operating officer, has taken over as CEO.
"I am deeply committed to restoring the trust of all of our stakeholders, including our customers, shareholders and community partners," Sloan said in a statement on Friday.
Earlier in September, Wells Fargo agreed to pay $185-million to settle regulatory charges and fired up to 5,300 employees in connection with the scandal.
Bank of America Corp, the second largest bank in the United States by total assets, will report on Monday.