JPMorgan Chase's quarterly profit topped Wall Street’s expectations on Friday, as trading revenue came in much higher than expected and demand for loans increased on the back of a strengthening U.S. economy.
Reuters reports that U.S. banks are benefiting from a cut in corporate tax rates, hikes in interest rates and a growing economy that is driving demand from borrowers while holding down loan loss rates.
“We see good global economic growth, particularly in the U.S., where consumer and business sentiment is high,” Chief Executive Officer Jamie Dimon said.
In the meantime, the news agency also reports that Citigroup is still on track to hit its goals for efficiency and revenue growth, executives said on Friday, as analysts pressed them to explain how those expectations line up with second-quarter results.
Although Citigroup beat Wall Street profit expectations, its revenue fell short of forecasts and businesses like branded credit cards and retail banking in Mexico are not yet generating the kind of revenue investors want to see.