$JPM

US banks reported weaker fixed income trading revenues in Q3 due to high interest rate volatility. Morgan Stanley, JPMorgan, and Bank of America saw declines of 7%, 4%, and 17% respectively, while Goldman Sachs remained flat and Citigroup increased by 4%. Rising yields led to higher unrealized losses in bond portfolios, with Bank of America reporting $109 billion in losses. Equity trading revenues grew significantly, with Goldman Sachs up 72% and Morgan Stanley up 41%.

Wall Street banks are investing in and adopting AI, but face risks. Executives from Goldman, Citigroup, and others discussed uncertainties around capital demands, computing power, and security threats. AI infrastructure investment is significant, with banks financing data centers but facing potential financing cost increases. Banks are also using AI internally to cut costs and boost productivity, though financial payoffs are not yet fully quantifiable.

The OCC found that nine major U.S. banks (JPMorgan Chase, Bank of America, Citibank, Wells Fargo, U.S. Bank, Capital One, PNC Bank, TD Bank, BMO Bank) had policies that disadvantaged customers based on political or religious views. The report, covering 2020-2025, cited lack of clear standards for assessing reputation risk, leading to cases like PNC denying credit to a media company with conservative owners and JPMorgan's WePay closing accounts for pro-Trump merchandise.

CEOs of JPMorgan (JPM), Goldman Sachs (GS), and Bank of America (BAC) addressed succession plans during earnings calls. Goldman's David Solomon denied any transition plans, while BAC's Brian Moynihan deferred to the board. JPMorgan did not discuss succession. Goldman's profit rose 29% to $5.29 billion, and BAC shares fell 8% after earnings.

Wall Street's top six banks reported $22bn in equity trading revenue for Q3, driven by volatility from the Iran war and AI stock movements. Goldman Sachs led with $6.4bn, up 72% YoY, while Morgan Stanley saw a 41% increase to $5.8bn. Prime brokerage and portfolio refinancing surged, with Goldman and Bank of America reporting double-digit growth. Total revenue for the group fell 6.7% to $165.6bn. Bank of America faced a $1.2bn fine, reducing net income by 17%.

Mastercard (MA) increased patent publications by 2.2%, with a focus on AI, open banking, and quantum-related technologies. Visa (V) saw an 18.4% decline in patent publications. Capital One (COF) and JPMorgan Chase (JPM) contributed significantly to the overall 14.1% drop in patent publications among the group. Mastercard's patents emphasize agentic payments, while Visa's remain focused on transaction authorization and security.

RBC Capital maintained an Outperform rating on JPMorgan Chase, setting a $370 price target, suggesting an 11.6% upside from the Oct 13 close. The bank reported a 10% year-over-year EPS increase, driven by higher net interest income and improved revenue across segments. Credit quality also improved, with net charge-offs decreasing.

Keefe Bruyette & Woods reaffirmed an Outperform rating on JPMorgan (JPM) with a $384 price target, raising 2027-2028 earnings estimates. JPMorgan provided net interest income guidance of $107B, exceeding prior estimates. Q3 2026 earnings missed expectations, with EPS of $5.75 vs. $5.93 expected, but revenue was $50.17B. The bank reported $15.3B in net income and a 20% return on tangible common equity.

JPMorgan reported a 20% increase in net income for the first nine months of 2026, with profit before provisions up 17% and provisions down 19%. All segments performed well, with investment banking leading. Net interest margin rose 11%, and revenue increased 20% against a 14% rise in costs. Share buybacks have declined sharply, with EPS up 25% year-over-year.

Bank of America's bond portfolio saw paper losses exceed $100 billion in Q3, driven by rising Treasury yields. Unrealized losses rose 28% to $109 billion. Analysts note AOCI losses doubled at JPMorgan and Wells Fargo, potentially impacting share buybacks. Bank of America's shares underperformed peers since 2022. Industry experts believe current losses are manageable.