JPMorgan Chase & Co (NYSE: JPM), the largest US bank by assets, reported a 13.4% rise in quarterly profit on Friday, as revenues against high interest rates offset the decline in bond trading.
The bank's net profit rose to $ 7.03 billion in the second quarter ended June 30, from $ 6.20 billion a year earlier. Earnings per share rose to $ 1.82 from $ 1.55.
Analysts expected a profit of $ 1.58 per share.
Top managers of major banks have warned in recent weeks that quarterly revenue from trading operations will be lower than a year ago, when the number of customer transactions increased significantly amid the Brexit referendum in the UK.
However, in the last quarter, the numbers rose, as the Fed raised the key rate to 1.00-1.25% from 0.25-0.50% a year earlier.
Wells Fargo & Co (NYSE: WFC), the third largest in the US bank by assets, reported an increase in quarterly profit by 4.5% due to increased borrowing and higher interest rates.
The net profit attributable to ordinary shareholders rose to $ 5.40 billion, or $ 1.07 per share, compared to $ 5.17 billion, or $ 1.01 per share, a year earlier.
On average, analysts had expected earnings of $ 1.01 per share.
Net interest income rose 6.4% to $ 12.48 billion.
Citigroup Inc. (NYSE: C) reported a 3.2% decrease in quarterly profit due to higher costs and a drop in revenue from trading from last year's levels.
The fourth largest bank in the US in terms of assets reported on Friday that net profit fell to $ 3.87 billion in the second quarter ended June 30 from $ 4.00 billion a year earlier.
Earnings per share, nevertheless, rose to $ 1.28 from $ 1.24, as the volume of shares in circulation decreased due to a repurchase.
On average, analysts had expected earnings of $ 1.21 per share, according to Thomson Reuters I/B/E/S.