Although the banks started to see some long-awaited benefits of higher interest rates, most warned of a slowdown in mortgage lending.

"Mortgage banking will continue to be weak, relative to year-ago periods, largely driven by the fact that interest rates are moving higher and less people are refinancing their homes," said Shannon Stemm, an analyst with Edward Jones.

"That is a trend that's going to continue."

A snapshot of the earnings of the three banks that reported on Friday:

JPMorgan Chase & Co (>> JP Morgan Chase & Company)

* Earnings (beat) - EPS $1.71 vs est. $1.58 * Revenue (beat) - $26.41 bln vs est $24.96 bln * Story - http://reut.rs/2tR3ISH   * Helped by: - Lower provisions for credit losses, down 13.3pct to $1.22 bln - Loan growth; average core loan book grew 8percent vs year earlier * Hurt by: - Slump in mortgage banking income, down 26percent - Jump in expenses, up 6.4 percent - Drop in marketsrevenue, falls 14 percent, led by 19 percent decrease infixed-income markets revenue * Forecast: - Smaller FY net interest income, +$4 bln vs+$4.5 bln forecast previously - FY 2017 average core loan growthto be about 8 pct vs 10 pct estimated earlier - Expects creditcard loss rates to go up as company makes more loans * Comment: - Interest rate movements "a tale of two cities,"in which Wall Street businesses change quickly, but Main Streetcustomers are not yet demanding more money for their deposits -Chief Financial Officer Marianne Lake

Wells Fargo & Co (>> Wells Fargo):

* Earnings (beat) - EPS $1.07 vs est. $1.01 * Revenue (missed) - $22.16 bln vs est. $22.47 bln * Story - http://reut.rs/2tRfooM * Helped by:- Steep drop in provisions for credit losses,nearly halves to $555 million - Rise in net interest income, up6.4 percent * Hurt by:- Slump in mortgage banking income, down 18.8percent- Higher expenses, up about 5 percent * Forecast:- Expects litigation costs to rise by up to $1.3billion at higher end of range - CFO- Auto loans to continue todecline in 2nd half - CFO- Mortgage income likely to be'volatile' ahead due to more competition - CFO * Comments:- "EPS looks a tad light as a lower-than-expectedloan loss provision and tax rate was used to help offsetweaker-than-expected fee income" - Jason Goldberg, ManagingDirector from Barclays

Citigroup (>> Citigroup):

* Earnings (beat) - EPS $1.28 vs est. $1.21 * Revenue (beat) - $17.90 bln vs est. $17.37 billion * Story - http://reut.rs/2tQVfPr * Helped by:- Drop in trading revenue smaller than lender'sforecast, 7 percent vs 12 percent decline projected by company-Growth in loans, up 2 percent * Hurt by:- Rise in operating expense, up 1.3 percent-Declines in fixed income and equity trading revenues;fixed-income slips 6 percent, equity falls 11 percent * Forecast:- We feel very good about meeting targets forreturn on equity - CEO Mike Corbat * Comments:- "We are still hopeful that we will get somesolid changes to boost economy" - Chief Financial Officer JohnGerspach

Goldman Sachs, Morgan Stanley and Bank of America are scheduled to report quarterly earnings next week.

(Reporting By Aparajita Saxena and Nikhil Subba in Bengaluru; Editing by Sriraj Kalluvila)

Stocks treated in this article : Citigroup, JP Morgan Chase & Company, Wells Fargo