JP Morgan Chase The company generated better-than-expected interest income and reported third-quarter results that beat profit and revenue expectations.
Here’s what the company reported:
- Revenue: $4.37 per share vs. LSEG forecast of $4.01 per share
- Revenue: $43.32 billion compared to an estimated $41.63 billion.
JPMorgan said profit fell 2% from a year earlier to $12.9 billion, while sales rose 6% to $43.32 billion. Net interest income rose 3% to $23.5 billion, beating Street estimates of $22.73 billion due to gains from investments in securities and loan growth in the credit card business.
Chief Executive Jamie Dimon praised the company’s quarterly results in a statement, but also cited regulators’ intensive efforts to force banks to hold more capital, calling the situation “dangerous and deteriorating.” ”, expressing concern about rising geopolitical risks.
“I believe we can create rules that promote a strong financial system without unduly impacting the economy,” Dimon said of the pending regulatory changes. “Now is a good time to step back and review a wide range of existing rules to understand the impact on economic growth and market health. These rules were put in place for good reasons,” he said. It is a thing,” he said.
The bank’s results were also supported by its Wall Street division. Investment banking fees rose 31% to $2.27 billion in the quarter, beating expectations of $2.02 billion.
Fixed income trading revenue was $4.5 billion, unchanged from a year ago but above StreetAccount’s estimate of $4.38 billion. Stock trading rose 27% to $2.6 billion, beating estimates of $2.41 billion, according to Street Accounts.
The company also raised its full-year 2024 outlook for net interest income from the previous quarter, saying NII will reach about $92.5 billion this year, up from its previous forecast of $91 billion. Annual expenses are expected to be approximately $91.5 billion, down from the previous outlook of $92 billion.
Shares rose 5% in midday trading.
JPMorgan’s allowance for credit losses for the quarter was $3.1 billion, lower than expected at $2.91 billion as the company took $2.1 billion in write-offs and built up $1 billion in reserves for future losses. It also got worse.
Chief Financial Officer Jeremy Burnham told reporters on Friday that consumers were “fine and on solid footing” and that the increase in reserves was due to banks increasing their credit card loan balances. He said it’s not because consumers are weak.
America’s largest banks have grown in a rising interest rate environment, posting record net profits since the Federal Reserve began raising interest rates in 2022.
Now that the Fed has lowered interest rates, there are questions about how JPMorgan will weather the change. Like other large banks, margins could come under pressure as yields on interest-bearing assets such as loans fall faster than funding costs.
JPMorgan last month lowered its 2025 net interest income and net spending forecasts. Burnham reiterated the bank’s view on Friday that NII is headed for a decline before rebounding “in the future.”
He said NII’s third-quarter outperformance was “a bit of a spike” and was the result of a “cross-trend that happens to cancel out” towards the upside, not a sustainable trend.
JPMorgan’s stock is up about 25% this year through Friday, outpacing the KBW Bank Index’s 20% rise.
wells fargo Quarterly results were also announced on Friday. bank of america, goldman sachs, citygroup and morgan stanley I will report next week.
