The first part of bank statements disappointed Wall Street

The first Wall Street bank accounts for the second quarter showed a mixed picture and failed to convince investors that the sector would benefit from rising interest rates in the United States.

JPMorgan Chase and Citigroup report double-digit earnings growth, supported by tax breaks and the strong performance of their investment banking divisions. The positive financial result of JPMorgan has increased by 18% and Citigroup by 15%.

This is not the case with Wells Fargo. The bank, still struggling with the false accounts scandal two years ago, saw its profits fall by 11%

The actions of the three coffers fell at Friday's meeting because the instigators found a source of concern in their financial statements. The negative trend in the banking sector continued after the stock of financial institutions reached record levels in January of this year.

The main problem is that the rise in Fed interest rates may not be as positive for banks as expected. In theory, they had to "untie their hands" to increase interest rates on loans and, at the same time, slow down the cost of deposits. The positive difference had to go to the "pockets" of the bankers.

Reports for the second quarter, however, differ from this table. It turns out that the increase in interest rates has a negative impact on the demand for certain credit products. Analysts also note that Wells, JPMorgan and Citi are forced to pay more for their initial capital. At JP Morgan, for example, interest expenses jumped 56% on an annual basis and those in Wells Fargo – almost double, with up to 87%.

JPMorgan's executive director, Jamie Diamond, also argued that escalating global trade conflicts could put additional pressure on the business climate in the United States in the coming months.

"White Swallow" in the second quarter financial statements proved the results of the investment business. JP Morgan's investment income increased by 17%, bonds and other fixed income transactions increased by 12% and equity transactions by 24%.

Citigroup's results are slightly weaker, but they still show an increase in profits from the instigation activity. Fees increase by 6% on an annual basis and those on investment boards by 7%. On a Friday trading session, Wells Fargo fell 1.2% to a level of $ 55.36 per share, JP Morgan Chase fell 0.46% to $ 106.36 per share, while stocks Citigroup declined 2.2% to $ 67.