JPMorgan, Wells Fargo, Goldman Sachs and Citigroup report third-quarter earnings

Four of the largest U.S. banks reported third-quarter results on Tuesday, offering a clear look at how major institutions are navigating high borrowing costs and changing markets. JPMorgan Chase, Wells Fargo, Goldman Sachs and Citigroup all shared their financial numbers with the public. Bank of America and Morgan Stanley are scheduled to post their earnings on Wednesday to round out the reports for the major firms. The quarter was dominated by headlines around artificial intelligence, IPO uncertainty, high fuel prices and rising borrowing costs. According to CNBC, JPMorgan, the biggest U.S. bank by assets and the largest in the world by market capitalization, posted a rare miss. Goldman Sachs blew past estimates for revenue and earnings per share, led by strong equities trading. Analyst calls for all four banks touched on the opportunities and risks associated with artificial intelligence, citing robust financing demand and operational advantages, but also the threat of rogue agents. Wells Fargo CFO Mike Santomassimo told CNBC that both consumers and businesses are doing really well. "We're just not seeing any sort of cracks around delinquency trends that would lead you to believe you're going to see any near-term stress that come through, at least for now," Santomassimo said. Citigroup CEO Jane Fraser told analysts that the company is focused on reducing systemic risk while deploying artificial intelligence firmwide. Investment banking fees at all four firms largely held up during the third quarter, matching or surpassing prior guidance. At JPMorgan, investment banking revenue was up 14% year over year, but down 8% quarter over quarter. Goldman Sachs reported fees that were 21% higher from the prior year, but 5% lower than the second quarter. Citi posted the largest quarter-over-quarter decline in fees at 13% down, while Wells Fargo saw a 5% drop from the previous quarter. Goldman Sachs CEO David Solomon warned that the artificial intelligence infrastructure boom could face a painful reset if higher borrowing costs or overbuilding undermine the economics of some data center projects. Keep an eye on how these shifting banking trends affect your business loans and credit lines.