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FACTBOX-US banks top Wall Street estimates despite trading slump

(Adds Goldman Sachs, Morgan Stanley)

Oct 17 (Reuters) - All six big U.S. banks reported third-quarter earnings that topped Wall Street estimates as strength in their lending and advisory businesses and gains from higher interest rates helped them cushion a blow from a slump in bond trading.

Goldman Sachs, the last among the six to report, said private equity investments and higher fees from dealmaking helped power its earnings beat.

Rival Morgan Stanley smashed Wall Street expectations on strong revenue from its wealth management business.

A snapshot of third-quarter earnings for the six largest U.S. banks:

Morgan Stanley:

EPS (beat) - 88 cents vs est 81 cents Revenue (beat) - $9.20 bln vs est $9.01 bln Story - http://reut.rs/2hL5PjC Helped by:

- Record revenue from wealth management business, up 8.7 pct to $4.22 bln

- Investment banking revenue rose 12.7 pct to $1.38 bln

Hurt by:

- Bond trading revenue fell 20 pct to $1.2 bln

Executive comment:

- Chief Executive James Gorman: "Our third quarter results reflected the stability our wealth management, investment banking and investment management businesses bring when our Sales and Trading business faces a subdued environment"

Goldman Sachs:

EPS (beat) - $5.02 vs est $4.17 Revenue (beat) - $8.33 bln vs est $7.54 bln Story - http://reut.rs/2ggwrc4 Helped by:

- Strength in investment banking and lending business

- Smaller-than-expected decline in bond trading revenue

Hurt by:

- Bond trading revenue fell 26 pct

* Executive comment: - Chief Financial Officer R. Martin Chavez:"Half of decline in fixed income trading revenue year to date was caused by commodities inventory."Goldman expects to repurchase $8.7 bln in shares from investors.On potential regulatory reform: "These things are great if and when they happen, they aren't embedded in our plans."

Analyst comment:

- Chris Kotowski, Oppenheimer:

"After two quarters in a row severely missing Wall Street's bond trading estimates, Goldman's 26 pct decline did not look so bad."

"While we did not see a sharp rebound in (bond) trading, one can, at a minimum, say that this quarter Goldman looked pretty much like everyone else," Kotowski wrote in a note

JPMorgan Chase & Co

* EPS (beat) - $1.76 vs est $1.65

* Revenue (beat) - $25.33 bln vs est $25.23 bln

* Story - http://reut.rs/2yf7etd

* Helped by:- Average loan balances, up 7 pct- Net interest income, up 10 pct

* Hurt by:- Trading revenue, down 21.24 pct- Bond trading revenue down 27 pct

* Executive comment:- Marianne Lake, CFO: - Fourth quarter markets revenue likely to be lower compared to same period last year- On tax reform: "So many uncertainties it's almost talking about hypotheticals at this point"- Sapphire Reserve credit card attrition numbers so far are "very encouraging"

* Analyst comments:- Credit Suisse: JP Morgan Q3 results "straightforward, solid and positive"- Betsy Graseck, Morgan Stanley: This is exciting! We are going to start talking about the value of deposits again for the first time in 10 years- Jim Sinegal, Morningstar Inc: Results were solid, but not exceptional Citigroup:

* EPS (beat) - $1.42 vs est $1.32

* Revenue (beat) - $18.17 bln vs est $17.90 bln

* Story - http://reut.rs/2z4SdXP

* Helped by:- Smaller-than-expected decline in trading revenue; down 11 pct vs expected 15 pct- Lower expenses; Down 2 pct vs year ago- Gain of $355 mln, worth 13 cents a share, from the previously disclosed sale of a fixed income market analytics and index business

* Hurt by:- Fixed income and equity trading revenues down 16 pct

* Executive comment:- Chief Financial Officer John Gersprach:"We all would anticipate greater loan growth if there was a bit more clarity as far as you know when or if tax reform was going to pass" Bank of America:

* EPS (beat) - 48 cents vs est 45 cents

* Revenue (beat) - $22.08 bln vs est $21.98 bln

* Story - http://reut.rs/2gCbd9h

* Hurt by: - Trading revenue fell 15 pct

* Helped by:- Tight leash on costs; Q3 noninterest expense down 2.5 pct at $13.14 bln- Higher interest rates; Net interest income up 9.4 pct to $11.16 bln

* Executive comment:- Chief Financial Officer Paul Donofrio: "Tax reform is going to be great for the economy ... but I don't think people are waiting around"

* Analyst comments:- Steven Chubak, Instinet:"On balance, Bank of America's results stack up better than those of peers"

Wells Fargo & Co:

* EPS (beat) - $1.04 vs est $1.03

Revenue (miss) - $21.9 bln vs est. $22.4 bln

* 4th straight quarter of estimate miss

* Story - http://reut.rs/2ymh1Nt

* Hurt by: - Previously disclosed legal costs and a slump in mortgage banking income- Noninterest expenses up 8.2 pct to $14.35 bln

* Forecast:- Auto loans decline to likely bottom in second-half 2018- Revises 2017 efficiency ratio target upward to 61 pct due to lower-than-expected earning assets and higher costs, including cyber-defense

* Executive comments: - John Shrewsberry, CFO:Wells is committed to its plan to cut costs by $4 bln by the end of 2019, half of which will be reinvested into businesses.- John Shrewsberry, CFO: Credit card portfolio regaining momentum after impact of sales scandal- Tim Sloan, CEO:Attrition of employees in Wells Fargo's community bank at lowest levels in 6 years

* Analyst comments:- Stephen Biggar, Argus Research: While mortgage banking has been slumping for most banks in recent quarters due to the rising interest rate environment, the 37 pct drop for WFC is more significant and I have to wonder whether the fallout from WFC's sales practices is also impacting mortgage banking volume. Average loan growth did not keep pace with that of other banks reporting so far, and trust and investment fees declined (also unlike other banks), perhaps as the result of advisor loss to other banks. (Compiled by Aparajita Saxena and Nikhil Subba in Bengaluru)