GS on bank earnings (alex mitola/christian degrasse) (+/=) JPM: Headline EPS miss in part driven by some noise, while core EPS was relatively in-line, but there’s a few points of weakness standing out, 1) core rev missed just slightly, driven by weaker fees (FICC trading partially offset by better equities, of which investors were somewhat aware of given mid quarter commentary) while expenses was relatively in-line (perhaps some would want more levers pulled amidst weaker fees) 2) NII was solid, but deposit costs of +7bps QoQ were higher than +1bps street, and most importantly for JPM & broader banks 3) a significantly slower share buyback with JPM lowering the pace of the buyback to ~$1bn vs $6.7bn last quarter. The decline in the buyback is very notable as, 1) despite this, CET1 declined 30bps QoQ to 13.9%, driven both by higher rates / AOCI (paper marks on securities) and also still solid RWA growth. The market has been spending more time on capital alongside the move higher in rates – but JPM getting more defensive here & the buyback may be a signal to the broader bank industry and capital return estimates are likely biased downward from here. Guidance though came in better than consensus, with FY26 NII guide of $106.2bn vs $105.5bn cons, Expenses of $108.6bn vs $108.1bn cons, and 2027 NII ex markets of $107bn, above the steet at $104.5bn and +10% YoY… Call @ 830am (-/=) WFC: ~3% PPNR miss on the quarter with both fees (trading) & NII coming in below expectations, while expenses were only a slight offset. NII miss came from size of balance sheet, as NIM looks generally solid and deposit costs (which had been a issue to investors in past quarters) look contained (look +1bp vs street estimates) – Buyback was also slowed here but to a lesser extent than JPM,did $2.5bn vs ~$3.0bn last qtr and capital is now at 10.0% (-30bps QoQ, with AOCI again serving as source of pressure), which may (particularly given what JPM did) prompt investors to think about a slower pace from here .. They did reiterate the full year NII guide, which was expected – but PPNR weakness (of which NII was a part) not giving bulls what they want while capital is getting brought back in focus (which, relative to peers has generally been more cited by the bears in our convos re WFC).. Call @ 10am