JPMorgan said earnings for the three months ending in September were pegged at $9.4 billion, or $2.92 per share, up 9% from the same period last year and well ahead of the Street consensus forecast of $2.22 per share. Group revenues, JPMorgan said, slipped 0.66% to $29.9 billion, again topping analysts’ forecasts of a $28.3 billion tally.
JPMorgan said its credit loss provision for the quarter rose by $611 million, a much lower figure than the front-loaded $10.5 billion booked over the three months ending in June and the market expectation of around $1.8 billion to as high as $6 billion. Group expenses edged higher from last year to $16.9 billion, the bank said.
“JPMorgan Chase earned $9.4 billion of net income on nearly $30 billion of revenue and we maintained our credit reserves at $34 billion given significant economic uncertainty and a broad range of potential outcomes,” said CEO Jamie Dimon. “We further strengthened our capital and liquidity position, increasing CET1 capital to $198 billion (13.0% CET1 ratio, up 60 basis points after paying the dividend) and liquidity sources to $1.3 trillion.”
“In Consumer & Community Banking, we continue to add deposits, up 28% versus last year – and based on the most recent FDIC data we ranked #1 in U.S. retail deposits for the first time ever as we are investing in the business to better serve our customers’ needs,” he added.
JPMorgan shares were marked 1.3% higher in pre-market trading immediately following the earnings release to indicate an opening bell price of $103.71 each, a move that would put the stock’s six-month gain at around 5.6%.
Investment banking revenue, JPMorgan said, rose 12% to $2.1 billion, while revenues in the group’s fixed income division surged 29% to $4.6 billion. Equity market revenues, JPMorgan said, rose 32% to $2 billion.