NEW YORK — Major U.S. banks reported billions of dollars in third-quarter profits Tuesday, prompting merchant advocates to renew calls for Congress to increase credit card competition and reduce interchange fees. Investors responded less enthusiastically, sending shares of four major banks lower by the close.
JPMorgan Chase reported net income of $15.3 billion, or $5.57 per share, on revenue of $50.2 billion. The bank said debit and credit card sales volume increased 10% from a year earlier. Despite higher profits, JPMorgan missed analysts’ earnings expectations for the first time since late 2023, Reuters reported, as dealmaking and bond trading lost momentum.
Citigroup reported net income of $5.2 billion on revenue of $23.8 billion, compared with $3.8 billion and $22.1 billion a year earlier. CEO Jane Fraser said services, wealth management and consumer cards contributed to its performance, according to the Wall Street Journal.
Goldman Sachs earned $5.29 billion, up from $4.1 billion, while Wells Fargo posted $5.95 billion in profit, according to the Associated Press. Both exceeded earnings expectations.
All four banks’ shares finished lower, with Citigroup’s 5.6% decline the largest, the Journal reported.
Merchants Press for Competition
The Merchants Payments Coalition said the earnings demonstrated why Congress should pass the Credit Card Competition Act, arguing that banks’ profits were supported partly by fees charged when shoppers use cards. That legislation is strongly opposed by credit unions and financial institutions.
The legislation would require major card issuers to enable competing processing networks, giving merchants additional routing choices. Merchant groups contend competition would lower fees and consumer costs; banks warn it could undermine card rewards.
“Another quarter, another round of multibillion-dollar profits for the megabanks,” Doug Kantor, a coalition executive committee member and National Association of Convenience Stores general counsel, said in a statement. Kantor argued that those charges squeezed merchants and consumers.
Meanwhile, JPMorgan CEO Jamie Dimon said business investment and consumer spending continued supporting the economy, but warned that inflation, rising interest rates, fiscal deficits and geopolitical conditions remained risks.
