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15 October 2019 By John Foley Follow @johnsfoley

JPMorgan’s earnings grew, while the WeWork debacle helped send Goldman Sachs’s lower. The Wall Street firms have different challenges. Jamie Dimon’s relies on interest income, which suffers as rates fall. David Solomon’s is more exposed to volatile markets and bad investments.

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JPMorgan on Oct. 15 reported third-quarter net income available to common shareholders of $8.6 billion, 8% higher than the same period last year. At $2.68 a share on a diluted basis, earnings beat the median forecast of sell-side analysts of $2.45, according to Refinitiv. Revenue was $29.3 billion, a 2% increase on the same period a year earlier.

Net interest income, which makes up around half of the Wall Street bank’s revenue, grew by 2% from last year’s third quarter, around one-third the pace of the preceding quarter and the slowest rate of increase since the end of 2015.

Goldman Sachs also reported third-quarter numbers on Oct. 15. Net income available to common shareholders was $1.8 billion, a 27% fall from the same period a year earlier. Per-share earnings of $4.79 compares to the median estimate of sell-side analysts of $4.81 per share. Revenue of $8.3 billion was 6% lower than the same period last year.

Goldman’s revenue from investments in corporate equities fell to around $80 million, according to its earnings presentation, from around $1.1 billion in the previous three-month period. The firm owns stakes in ride-share company Uber Technologies and shared-office company WeWork.

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