{"text":[[{"start":9.56,"text":"Bank bosses played down investor fears that Wall Street’s trading boom is faltering, posting another strong quarter for profits boosted by buoyant equities businesses even as fixed income divisions showed signs of weakness."}],[{"start":23.64,"text":"Four of the biggest Wall Street banks — JPMorgan Chase, Citigroup, Goldman Sachs and Wells Fargo — on Tuesday reported higher third-quarter net income than a year ago, with Goldman topping the pack after adjusting for one-off items with a 30 per cent increase."}],[{"start":39.16,"text":"“So far so good, and hopefully we’ll enjoy a good environment for a while,” JPMorgan chief executive Jamie Dimon told analysts. “We just don’t know when it’s going to stop.”"}],[{"start":50.32,"text":"The earnings reassured investors concerned about how long the trading and investment banking gains that have fuelled bumper earnings could be sustained."}],[{"start":57.88,"text":"“I know everybody wants to call the peak. It’s hard to call the peak,” Goldman Sachs chief executive David Solomon said. “I still think for capital markets activity, it’s a top quartile environment.”"}],[{"start":70.76,"text":"Equities traders delivered standout results, albeit shy of the blockbuster levels delivered during the second-quarter boom in semiconductor and other AI-related stocks."}],[{"start":80.48,"text":"At Goldman, third-quarter equities trading revenues were more than 70 per cent higher than a year ago — twice the increase that analysts had expected — at $6.4bn. JPMorgan’s equities trading revenues were up almost 50 per cent at $5bn."}],[{"start":97.9,"text":"Revenues in the business have boomed off the back of demand from hedge funds for financing for their trades."}],[{"start":103.5,"text":"Goldman chief financial officer Denis Coleman said demand for equity financing currently exceeded available industry capacity, which was allowing investment banks like Goldman to charge attractive rates to lend."}],[{"start":114.36,"text":"“Overall, it was a strong quarter,” Oppenheimer analysts said of Goldman’s results. “Our main concern with this and with other bulge-bracket firms remains how much of the ‘beats’ seem concentrated in the equities trading business and how sustainable they will prove.”"}],[{"start":129.74,"text":"The lending businesses at JPMorgan, Citi and Wells also benefited from rising interest rates with the US Federal Reserve’s move last month."}],[{"start":137.72,"text":"The banks reported higher net interest income (NII), which is the difference in what banks earn on assets and pay in interest on liabilities. JPMorgan also lifted its guidance for NII for the rest of the year and indicated that it would increase again next year."}],[{"start":153.96,"text":"Losses from loans were muted, and bankers said that underlying consumer spending trends remained robust even as Americans grappled with elevated inflation."}],[{"start":163.44,"text":"Wells Fargo’s chief financial Mike Santomassimo said “really strong” wage growth and employment had helped offset some of the negative effects of inflation on the economy, including rising gas prices."}],[{"start":174.48,"text":"“Energy and gas prices [rising] . . . is meaningful, for sure, but it ends up being 3 to 6 per cent of spend, depending on your wealth level or income level, so it’s still manageable: people were able to offset that with savings in other categories and spend,” he told analysts."}],[{"start":191.92,"text":"Rising rates were a double-edged sword for banks’ fixed income, currency and commodities traders, however. Goldman and JPMorgan reported unexpected declines in FICC trading revenues compared with a year ago, with bankers blaming rising rates and their impact on credit and mortgage trading."}],[{"start":209.7,"text":"Citigroup bucked the trend with better than expected revenue growth of 4 per cent in the division. But even so, chief financial officer Gonzalo Luchetti acknowledged that fixed income, currencies and commodities trading was “a bit tougher given the rates environment”."}],[{"start":224.74,"text":"Shares in Goldman and JPMorgan were up in midday trading in New York, while Citi and Wells were down."}],[{"start":235.72,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1791936770_9474.mp3"}