US bank profits rise as executives back AI boom

Major US banks reported higher third-quarter profits Tuesday, while executives said the artificial intelligence investment boom remained strong despite public concern over the technology.

JPMorgan Chase reported a six percent rise in profit from a year earlier to $15.3 billion, below the $15.85 billion forecast by FactSet analysts. The bank cited securities investment losses and higher expenses, including compensation and spending on technology and marketing.

Goldman Sachs reported profit of $5.1 billion for the July-September period, up 33 percent from a year earlier but down 20 percent from the second quarter. The bank said equities trading revenue rose 72 percent from a year earlier and investment banking fees increased.

Citigroup reported a 40 percent jump in profit to $5.2 billion, while Wells Fargo reported a 6.5 percent increase to $6.0 billion.

Goldman Sachs chief executive David Solomon said the technology behind the AI boom was “real”, while warning that many things could still slow it down. JPMorgan chief financial officer Jeremy Barnum said AI-related capital spending was still being made and deals still needed financing.

Barnum also described US consumer spending as robust, but said an aggressive and extended interest-rate cycle could raise unemployment and weaken consumer credit results.