A still-challenging environment around lending and interest rates, along with frustration over Washington gridlock that prompted angry remarks from J.P. Morgan Chase & Co. chief James Dimon, took some of the shine off otherwise solid financial results Friday from three of the biggest U.S. banks.
J.P. Morgan Chase led the way with record profit in the second quarter of $7.03 billion. Even so, executives cut their guidance for lending growth in 2017 as well as for interest income.
Shares in the bank and other lenders fell in response, reflecting investor worries that economic growth might not be strong enough to fuel further gains in bank shares given their postelection run-up. The KBW Nasdaq Bank index is up about 28% since last November’s election, nearly double the performance of the S&P 500 during that time.