AI Summary
5 min readBig Banks Ride the AI Boom
JP Morgan Chase posted $15.31 billion in profit for the third quarter — and still fell short of analysts' expectations. That rare miss, driven by slower trading and investment banking than Wall Street had predicted, captures the strange moment big banks find themselves in: profits are enormous, the AI build-out is fueling a dealmaking boom, but a volatile bond market and the first Federal Reserve rate hike in years are casting shadows over what comes next.
Goldman Sachs, Citigroup, and Wells Fargo also reported higher third-quarter profit and revenue compared to a year earlier. Across all four banks, revenue rose 9% to $115 billion. The engines driving those numbers are familiar: strong consumer banking, robust trading, and an insatiable appetite for capital from the giant tech companies building out artificial intelligence infrastructure.
The AI build-out is the story
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What you'll learn
- 1 (00:01) **🎙️ Introduction: Ben Glickman**
- 2 (01:16) **Impact of the Fed's Rate Hike on Bank Profits**
- 3 (02:06) **Bond Market Turmoil and Trading Underperformance**
- 4 (03:28) **IPO and Deal-Making Slowdown**
- 5 (04:24) **Shifting IPO Landscape and AI Implications**
- 6 (05:13) **JP Morgan and Goldman Sachs Earnings Deep Dive**
- 7 (06:38) **Wrap-Up and Episode Preview**
+ Full timestamped outline available in the app
Guests on this episode
Show Notes
Bonus Episode for Oct. 15. Big U.S. banks opened earnings season with growing profits—and warnings that rising interest rates could stop the party. Still, bankers said higher rates have yet to dent consumer or business appetite to borrow and spend. JPMorgan Chase, Goldman Sachs, Citigroup and Wells Fargo each reported higher third-quarter profit and revenue from a year earlier. WSJ banking and payments reporter Ben Glickman says that’s in part because of the near-endless need for financing related to the artificial-intelligence industry. Revenue across all four increased 9% to $115 billion.
Pierre Bienaimé hosts this special bonus episode of What's News in Earnings, where we dig into companies’ earnings reports and analyst calls to find out what’s going on under the hood of the American economy.
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