Saturday, January 17, 2026- Earnings season has delivered a sobering reality check for some of the biggest U.S. banks, as reports from Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo generally missed investor expectations or revealed soft spots that spooked markets.
Bank stocks dipped broadly as results rolled in, with investors reacting more to guidance and weakness in key business lines than to headline profit figures themselves. Overall sentiment on Wall Street is cautious after a series of mixed earnings reports from the financial sector.
Citigroup’s quarterly results showed a notable decline in profit, with net income falling year‑over‑year and missing forecasts, influenced in part by a large one‑time loss tied to its Russia business and rising expenses.
Shares fell as the bank ended a long streak of beating expectations, highlighting the challenges still facing its restructuring efforts. Bank of America and Wells Fargo also saw stock declines amid earnings that, while showing revenue growth, still failed to fully meet analyst hopes, with factors like severance costs and slower fee growth weighing on results.
Meanwhile, at JPMorgan, although revenue rose, the bank posted a drop in quarterly profit and missed on some earnings-per-share expectations, with investment-banking fees notably softer.
The combination of earnings misses and broader concerns about credit conditions and regulatory pressure led to a sell-off in bank shares and contributed to a cautious tone across the sector. Investors are watching how these major lenders adjust strategy amid slower loan growth and macroeconomic uncertainties.
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