Bank stocks rose sharply in trading on Friday after JP Morgan Chase & Co. (NYSE:JPM) and Wells Fargo & Co. (NYSE:WFC) reported solid second-quarter financial results.
JPM reported a profit of $5 billion, or $1.21 per share for the second quarter, despite a $4.4 billion trading loss. The loss relates to the “London Whale” trades, which the bank had disclosed two months ago. JPM is expected to report another $700 million to $1.7 billion of losses related to the trades.
Meanwhile, Wells Fargo reported second-quarter net income of $4.6 billion, or $0.82 per share, compared to $3.9 billion, or $0.70 per share. WFC earnings for the quarter beat consensus forecast. WFC benefited from rising mortgage banking income and improved credit quality in the second quarter. WFC’s mortgage banking income came in at $2.9 billion.
JPM stock rose more than 6% on Friday. WFC, meanwhile, gained more than 3%. Other major bank stocks that rose on Friday included Bank of America Corporation (NYSE:BAC), Goldman Sachs Group (NYSE:GS), Citigroup Inc. (NYSE:C), and Morgan Stanley (NYSE:MS).
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