On October 12, 2024, JPMorgan Chase and Wells Fargo released their Q3 financial results, revealing robust earnings despite ongoing economic concerns. JPMorgan reported a net income of $12.9 billion, a 2% decline from the previous year, while Wells Fargo's net income fell to $5.1 billion, down from $5.77 billion.
Both banks exceeded analysts' expectations, leading to a surge in their stock prices—JPMorgan's shares rose by 4.4% and Wells Fargo's by 5.61%. Notably, JPMorgan's revenue increased by 6% to $43.32 billion, with net interest income up 3% to $23.5 billion. Wells Fargo, while experiencing a decrease in earnings per share from $1.48 to $1.42, still outperformed predictions of $1.27.
Executives from both banks emphasized the resilience of consumer spending in the U.S., despite signs of high inflation. JPMorgan's CFO, Jeremy Barnum, noted that consumer spending patterns remain solid, although they have normalized from post-pandemic highs. Wells Fargo's CFO, Michael Santomassimo, highlighted a 10% year-on-year increase in credit card transactions.
However, demand for loans has weakened, attributed to persistently high interest rates, leading consumers to hesitate in taking on new debt. Analysts have pointed out that while consumer conditions appear stable, the overall lending environment remains cautious.