CEO of Chase Jamie Dimon looks on as he attends the seventh “Choose France Summit”, aiming to attract foreign investors to the country, at the Chateau de Versailles, outside Paris, on May 13, 2024.
Lucovic Marin | Getty Images
JPMorgan Chase posted third-quarter results that topped estimates for profit and revenue as the company generated more interest income than expected.
Here’s what the company reported:
- Earnings: $4.37 a share vs. $4.01 a share LSEG estimate
- Revenue: $43.32 billion, vs. $41.63 billion estimate
JPMorgan said profit fell 2% from a year earlier to $12.9 billion, while revenue climbed 6% to $43.32 billion. Net interest income rose 3% to $23.5 billion, exceeding the $22.73 billion StreetAccount estimate, on gains from investments in securities and loan growth in its credit card business.
The bank’s results were also helped by its Wall Street division. Investment banking fees climbed 31% to $2.27 billion in the quarter, exceeding the $2.02 billion estimate.
Fixed income trading generated $4.5 billion in revenue, unchanged from a year earlier but topping the $4.38 billion StreetAccount estimate. Equities trading jumped 27% to $2.6 billion, edging out the $2.41 billion estimate, according to StreetAccount.
The biggest American bank has thrived in a rising rate environment, posting record net income figures since the Fed started hiking rates in 2022.
Now, with the Fed cutting rates, there are questions as to how JPMorgan will navigate the change. Like other big banks, it’s margins may be squeezed as yields on interest-generating assets like loans fall faster than its funding costs.
Last month, JPMorgan dialed back expectations for 2025 net interest income and expenses, and analysts will want more details on those projections.
Shares of JPMorgan rose about 2% in premarket trading Friday and are up 25% so far this year, exceeding the 20% gain of the KBW Bank Index.
Wells Fargo also released quarterly results Friday, while Bank of America, Goldman Sachs, Citigroup and Morgan Stanley report next week.
This story is developing. Please check back for updates.