# Major Bank Stocks Fall Following Disappointing Third-Quarter Earnings

- URL: https://stocks.freetheai.org/news/major-bank-stocks-fall-following-disappointing-third-quarter-earnings-ddf5a6
- Published: 2026-10-14T06:07:20Z
- Category: earnings; sentiment: bearish; impact: high
- Symbols: [NYSE:C](https://stocks.freetheai.org/symbols/NYSE-C), [NYSE:WFC](https://stocks.freetheai.org/symbols/NYSE-WFC)
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Major U.S. banks kicked off the third-quarter earnings season on Tuesday, with share prices finishing in the red across the sector. Goldman Sachs (GS), Citigroup (C), Wells Fargo & Company (WFC), and JPMorgan Chase (JPM) all published financial results that disappointed market expectations. Shares of Citigroup fell 5.60% to $124.50, while Wells Fargo declined 3.10% to $80.74.

High interest rates helped boost interest earned from lending, with JPMorgan Chase, Citigroup, and Wells Fargo generating a combined $56.5 billion in net interest income. Citigroup reported net profit of $5.25 billion on $23.85 billion in revenue, aided by investment banking and wealth management. However, credit card profitability faced pressure from higher loss provisions. JPMorgan Chase missed consensus earnings forecasts, recording $15.3 billion in net income as credit costs reached $2.7 billion. Goldman Sachs posted $5.29 billion in net profit, driven by a 72% surge in equities trading.

Looking ahead, banks are forecasting steady income from lending. JPMorgan Chase raised its 2026 net interest income forecast to $106.2 billion, while Wells Fargo projected fourth-quarter net interest income of roughly $13 billion. Investors will monitor credit loss provisions and consumer borrowing behavior as economic conditions develop.

## Key points

- Citigroup, Wells Fargo, Goldman Sachs, and JPMorgan Chase shares closed lower after reporting third-quarter earnings.
- Citigroup shares dropped 5.60% to $124.50, while Wells Fargo fell 3.10% to $80.74.
- JPMorgan Chase, Citigroup, and Wells Fargo generated a combined $56.5 billion in net interest income for the quarter.
- JPMorgan Chase missed earnings expectations with $15.3 billion in net income, impacted by $2.7 billion in credit costs.
- Goldman Sachs reported a 29% rise in net profit to $5.29 billion, supported by a 72% increase in equities revenue.

## Questions and answers

### Why did big bank stocks drop after Q3 earnings?

Bank stocks closed lower because quarterly results disappointed a market that had anticipated stronger performance, despite solid lending income at several major institutions.

### How did Citigroup perform in Q3?

Citigroup reported net income of $5.25 billion on revenue of $23.85 billion, up 8% year-over-year. Net interest income rose 14% to $17 billion, though credit card profitability was pressured by higher loan-loss provisions.

### What is the net interest income outlook for JPMorgan Chase and Wells Fargo?

JPMorgan Chase raised its 2026 net interest income guidance to $106.2 billion, while Wells Fargo projected fourth-quarter net interest income of about $13 billion and a full-year 2026 total near $50 billion.