2018 has been a year of record profits for the top banks in the United States. This has failed to translate into stock market success in what has turned into one of the most turbulence period in nearly a decade.
JPMorgan Chase & Co. (NYSE:JPM) stock fell 1.87% on December 10.
Shares have dropped 5.2% in 2018 so far. In the third quarter JPMorgan reported earnings per share of $2.34 which blew away analyst expectations of $2.25. Revenue also surged to $27.8 billion, a new third-quarter record and above consensus estimates.
Profit in consumer banking soared 40% year-over-year to $4.09 billion. JPMorgan’s retail banking sector attracted a record amount of fresh money according to CEO Jamie Dimon.
Goldman Sachs Group Inc. (NYSE:GS) stock fell 0.47% on December 10. Shares have plunged 29.8% in 2018 so far. In the third quarter Goldman Sachs posted earnings per share of $6.28 which far exceeded expectations.
Revenue surged to $8.65 billion compared to $8.4 billion that was projected by analysts. Investment banking revenue at Goldman rose 10% year-over-year to $1.98 billion.
Top banks expect that the benefits from U.S. tax reform will begin to dissipate in 2019, which does not bode well for bank stocks in what promises to be an eventful year. Rising geopolitical tensions combined with a darkening economic outlook could pose bigger challenges for the top U.S. financial institutions.
