蘑菇AV

JPMorgan Chase was already reportedly looking for concessions as it considered taking over the portfolio, and this could give the bank even more leverage to get a better deal from Goldman.

[Editor鈥檚 Note: An earlier version of this report previously misstated that JPMorgan, Bank of America, and Wells Fargo exited the mortgage market. 蘑菇AV regrets the error.]. Nonbank lenders target more consumers, some of whom would have been ineligible for traditional mortgages. Nonbanks have a higher risk tolerance than traditional FIs while offering customers more flexible lending criteria.

The results: JPMorgan, Wells Fargo, Citibank, Bank of America, and Goldman Sachs beat Q3 2024 earnings estimates despite all but Goldman Sachs reporting a drop in profits since 2023. How we got here: As they did last quarter, big banks鈥� earnings show the economic environment remains challenging. As a result, analysts had expected mixed earnings, per The Financial Times. And they were right.

Large banks like Bank of America and JPMorgan Chase have combined assets of $100 billion or more. This report will focus on community banks and credit unions of a similar size. We describe both collectively within this report as 鈥渟maller FIs.鈥�. Community banks and credit unions are on the hook to prove their motto, 'smaller is better'. What鈥檚 happening?

Why this matters: Delinquencies also rose for JPMorgan and Wells Fargo this quarter. There were previously signs that delinquencies were starting to fall, but this quarter鈥檚 bank earnings show we鈥檙e not there yet. But executives aren鈥檛 worried:. 鈥淭he US consumer continues to remain healthy and resilient,鈥� Citi CFO Mark A. L. Mason said during the company's earnings call.

JPMorgan is testing how its genAI can 鈥渃opilot鈥� its private banking advisors. The technology allows these experts to offload some manual tasks like meeting preparation or drafting follow-up emails, per Business Insider. It can also identify important opportunities advisors should flag for their clients.

By the numbers: Consumer spending remained steady in Q3 2024, according to card data from JPMorgan Chase and Wells Fargo鈥檚 Q3 earnings reports. JPMorgan鈥檚 debit and credit sales volume increased 6% YoY, per its Q3 earnings presentation, compared with 8% YoY growth last year.

鈥淥ver the past year, we've seen JPMorgan Chase, Capital One, and Citi all make moves to launch their own commerce media businesses. And it makes sense. Banks have a ton of first-party data they can leverage,鈥� our analyst Maria Elm said in July. Travel media networks from businesses like United Airlines and Expedia also popped up in 2024 as businesses aim to monetize their data.

For example, JPMorgan Chase launched the JPM Coin, running on the Onyx blockchain, in 2020. It lets the bank鈥檚 corporate clients make real-time, multi-currency payments within its system, among other functions.

The group鈥檚 members include Nvidia, Moody鈥檚, JPMorgan, Citibank, Goldman Sachs, and Morgan Stanley. How we got here: Regulators have had a difficult time keeping up with this technology, which makes it risky territory for FIs.

Those conditions are a 鈥淕oldilocks economic situation,鈥� said JPMorgan CFO Jeremy Barnum, adding the 鈥渞esults鈥�are consistent with a soft landing.鈥�. But a Trump presidency could upend that trajectory. Trump pledges to institute across-the-board tariffs of 10% to 20% on imported goods, in addition to a 60% or higher tariff on imports from China.

Bad timing: A strike could cost the economy as much as $5 billion a day, per JPMorgan, which would be a massive jolt to a US economy that had been gliding down toward a soft landing. The timing couldn鈥檛 be worse for retailers, many of which plan to launch holiday sales in early October (or, in a few cases, late September) to offset a likely slowdown in sales the week of the US presidential election.

BofA is joined in this trend by JPMorgan and PNC, which both plan to significantly increase their brick-and-mortar presence over the next few years. A race to win high-value customers: Industry observers told Yahoo Finance that multiple banks view physical locations as ways to acquire wealth management and small-business customers.

A JPMorgan executive will become the CEO of nonprofit standards-setting body Financial Data Exchange (FDX), which will help determine how banks and fintechs share information once the CFPB鈥檚 rule goes into effect, per Bloomberg Law.

Upstarts like Ripple, in addition to incumbents like Visa and JPMorgan Chase, are pushing the technology. The buy now, pay later (BNPL) craze is creeping into B2B payments. While nascent relative to the consumer-facing market, there鈥檚 significant demand in B2B for alternative financing, especially among SMBs.

JPMorgan Chase. The Guardian. TikTok. VantageScore. X. YouTube.

Other big banks like JPMorgan, Wells Fargo, and Bank of America also analyze elections鈥� potential impacts on the market. But Golman鈥檚 analysis has sparked conversation and elicited responses from both campaigns鈥攑ossibly as a result of its timing. The Trump campaign dismissed the credibility of the analysis. The Harris campaign used it as an opportunity to make a case against her opponent.

JPMorgan Chase.

As these solutions gain traction, the line between debit and credit is blurring.

JPMorgan Chase, Wells Fargo, Capital One, U.S. Bank, and Truist, among others, have already integrated AI into their chatbots. It鈥檚 still ongoing: Nearly half (48%) of US bank executives in a recent Google Cloud survey cited chatbots as a use case for genAI. That means not all US consumers have been exposed to the tech.

A) JPMorgan Chase. B) Bank of America. C) Goldman Sachs. D) Wells Fargo. JPMorgan Chase is the largest US bank by assets, with total assets of $3.503 trillion, according to the March 2024 ranking by the Federal Reserve Board. June 11, 2024. Cozy up: Which in-branch amenity have banks yet to offer their customers? A) Meditation room. B) Cafe. C) Event space. D) Bike repair station.

JPMorgan Chase. Oliver Wyman. Petal. PYMNTS.com. The Wall Street Journal. TomoCredit.

For example, JPMorgan Chase, Citi, and Ally increased marketing and ad spend significantly more than the industry average in 2022. Ally鈥檚 52% YoY hike put it in the top 10 sharpest ad spending increases out of the 200 national advertisers with the biggest budgets, per Ad Age. Bank marketing budgets are increasingly shifting toward digital media. That鈥檚 per a recent American Bankers Association survey.

If their earnings were adjusted to remove these one-time fees, JPMorgan and Bank of America would have beaten analyst expectations, and Citigroup would have met them. Wells Fargo, Goldman Sachs, Morgan Stanley, and PNC beat expectations without adjustments.

But incumbents Visa and JPMorgan are close behind: They鈥檝e forged a partnership between their respective B2B Connect and Liink blockchain-based networks. The latter can use the former to mitigate fraud by confirming the intended recipient's bank account. Interbank integration and solving blockchain interoperability issues set a path for continued growth.