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Factbox - U.S. banks top Wall Street estimates despite trading slump

(Reuters) - All six big U.S. banks reported third-quarter earnings that topped Wall Street estimates as strength in their lending and advisory businesses and gains from higher interest rates helped them cushion a blow from a slump in bond trading.

Goldman Sachs (GS.N), the last among the six to report, said private equity investments and higher fees from dealmaking helped power its earnings beat.

Rival Morgan Stanley (MS.N) smashed Wall Street expectations on strong revenue from its wealth management business.

A snapshot of third-quarter earnings for the six largest U.S. banks:

Morgan Stanley (MS.N):

• EPS (beat) - 88 cents vs est 81 cents

• Revenue (beat) - $9.20 bln vs est $9.01 bln

• Story - http://reut.rs/2hL5PjC

• Helped by:

- Record revenue from wealth management business, up 8.7 pct to $4.22 bln

- Investment banking revenue rose 12.7 pct to $1.38 bln

• Hurt by:

- Bond trading revenue fell 20 pct to $1.2 bln

• Executive comment:

- Chief Executive James Gorman:

"Our third quarter results reflected the stability our wealth management, investment banking and investment management businesses bring when our Sales and Trading business faces a subdued environment"

Goldman Sachs (GS.N):

• EPS (beat) - $5.02 vs est $4.17

• Revenue (beat) - $8.33 bln vs est $7.54 bln

• Story - http://reut.rs/2ggwrc4

• Helped by:

- Strength in investment banking and lending business

- Smaller-than-expected decline in bond trading revenue

• Hurt by:

- Bond trading revenue fell 26 pct

* Executive comment: - Chief Financial Officer R. MartinChavez:"Half of decline in fixed income trading revenue year todate was caused by commodities inventory."Goldman expects torepurchase $8.7 bln in shares from investors.On potentialregulatory reform: "These things are great if and when theyhappen, they aren't embedded in our plans."

• Analyst comment:

- Chris Kotowski, Oppenheimer:

"After two quarters in a row severely missing Wall Street's bond trading estimates, Goldman's 26 pct decline did not look so bad."

"While we did not see a sharp rebound in (bond) trading, one can, at a minimum, say that this quarter Goldman looked pretty much like everyone else," Kotowski wrote in a note

JPMorgan Chase & Co (JPM.N)

* EPS (beat) - $1.76 vs est $1.65 * Revenue (beat) - $25.33 bln vs est $25.23 bln * Story - http://reut.rs/2yf7etd * Helped by:- Average loan balances, up 7 pct- Net interestincome, up 10 pct * Hurt by:- Trading revenue, down 21.24 pct- Bond tradingrevenue down 27 pct * Executive comment:- Marianne Lake, CFO: - Fourth quartermarkets revenue likely to be lower compared to same period lastyear- On tax reform: "So many uncertainties it's almost talkingabout hypotheticals at this point"- Sapphire Reserve credit cardattrition numbers so far are "very encouraging" * Analyst comments:- Credit Suisse: JP Morgan Q3 results"straightforward, solid and positive"- Betsy Graseck, MorganStanley: This is exciting! We are going to start talking aboutthe value of deposits again… for the first time in 10 years- JimSinegal, Morningstar Inc: Results were solid, but notexceptional

Citigroup (C.N):

* EPS (beat) - $1.42 vs est $1.32 * Revenue (beat) - $18.17 bln vs est $17.90 bln * Story - http://reut.rs/2z4SdXP * Helped by:- Smaller-than-expected decline in tradingrevenue; down 11 pct vs expected 15 pct- Lower expenses; Down 2pct vs year ago- Gain of $355 mln, worth 13 cents a share, fromthe previously disclosed sale of a fixed income market analyticsand index business * Hurt by:- Fixed income and equity trading revenues down 16pct * Executive comment:- Chief Financial Officer JohnGersprach:"We all would anticipate greater loan growth if therewas a bit more clarity as far as you know when or if tax reformwas going to pass"

Bank of America (BAC.N):

* EPS (beat) - 48 cents vs est 45 cents * Revenue (beat) - $22.08 bln vs est $21.98 bln * Story - http://reut.rs/2gCbd9h * Hurt by: - Trading revenue fell 15 pct * Helped by:- Tight leash on costs; Q3 noninterest expensedown 2.5 pct at $13.14 bln- Higher interest rates; Net interestincome up 9.4 pct to $11.16 bln * Executive comment:- Chief Financial Officer Paul Donofrio:"Tax reform is going to be great for the economy ... but I don'tthink people are waiting around" * Analyst comments:- Steven Chubak, Instinet:"On balance,Bank of America's results stack up better than those of peers"

Wells Fargo & Co (WFC.N):

* EPS (beat) - $1.04 vs est $1.03 * Revenue (miss) - $21.9 bln vs est. $22.4 bln * 4th straight quarter of estimate miss * Story - http://reut.rs/2ymh1Nt * Hurt by: - Previously disclosed legal costs and a slump inmortgage banking income- Noninterest expenses up 8.2 pct to$14.35 bln * Forecast:- Auto loans decline to likely bottom insecond-half 2018- Revises 2017 efficiency ratio target upward to61 pct due to lower-than-expected earning assets and highercosts, including cyber-defense * Executive comments: - John Shrewsberry, CFO:Wells iscommitted to its plan to cut costs by $4 bln by the end of 2019,half of which will be reinvested into businesses.- JohnShrewsberry, CFO: Credit card portfolio regaining momentum afterimpact of sales scandal- Tim Sloan, CEO:Attrition of employeesin Wells Fargo's community bank at lowest levels in 6 years * Analyst comments:- Stephen Biggar, Argus Research: Whilemortgage banking has been slumping for most banks in recentquarters due to the rising interest rate environment, the 37 pctdrop for WFC is more significant and I have to wonder whetherthe fallout from WFC's sales practices is also impactingmortgage banking volume. Average loan growth did not keep pacewith that of other banks reporting so far, and trust andinvestment fees declined (also unlike other banks), perhaps asthe result of advisor loss to other banks.

(Compiled by Aparajita Saxena and Nikhil Subba in Bengaluru)