Morgan Stanley Seen Leading Profit Gains Amid Trading Drop
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Morgan Stanley, Bank of America Corp. and Wells Fargo & Co. are poised to lead the six largest U.S. lenders by reporting a jump in earnings that may surprise some investors fixated on a slump in trading and mortgage lending.
The three banks probably will post combined third-quarter profit of $8.64 billion, or 14 percent more than a year earlier, according to analysts’ estimates compiled by Bloomberg. JPMorgan Chase & Co., Citigroup Inc. and Goldman Sachs Group Inc. will report a 7.8 percent drop, the estimates show. Five of the six firms may have squeezed more profit from each dollar of revenue as they benefited from expense cuts and a stronger U.S. economy.