The largest US bank attributes higher than expected profit to its revenue growth potential. It’s corporate and investment banking revenue of $16.4bn grew 64% sequentially and 66% year over year. The robust growth from corporate and investment banking helped it in offsetting lower revenue from other segments. JPMorgan stock price soared following the earnings report, extending a five-day rally to over 6%. Although JPMorgan stock is down almost 30% year to date, JPM stock has still outperformed the rest of the largest banks. Citi Group (NYSE: C) stock price dropped more than 2% after reporting second-quarter results. Citi also topped analyst’s revenue and earnings expectations by $710 million and $0.10 per share, respectively. Its provision for credit losses came in at $5.6bn compared to $7.16bn. Meanwhile, Wells Fargo (NYSE: WFC) remained the laggard among the top banks. Wells Fargo stock price slid more than 4.5% following the earnings announcement. The fourth-largest US bank has reported the first quarterly loss since 2008. It has also slashed dividends by 80% and inked a plan of making big cuts in expenses to deal with the uncertain environment. Its credit loss reserve stood around $8.4B in the second quarter. Overall, the banks are not in an ideal position to generate big profits in the short-term amid credit loss. Even challenger banks have been facing the negative impact of the pandemic.
