Bank profits kept rising in the third quarter as most banks benefited from higher rates and a steep yield curve, though funding costs are higher and the credit cycle remains uncertain. JPMorgan (JPM) missed third-quarter earnings and revenue estimates due to weaker fixed-income trading and higher expenses, but raised its full-year net interest income outlook, forecasting $107 billion for 2027, roughly 10% above its projected 2026 level; the stock trades at about 3 times tangible book value (TBV). First Citizens BancShares (FCNCA), with roughly $241 billion in total assets, has grown through acquisitions of distressed banks, including CIT Group in 2022 and Silicon Valley Bank's deposits, loans and branches in 2023. Its shares rose nearly 8% after third-quarter adjusted EPS of $55.37 beat estimates of $45.89, and its board approved a $1.2 billion share repurchase plan. The author suggests investors could look past JPMorgan's quarterly miss and hold the stock long term, and expects First Citizens to keep growing through acquisitions.
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