JPMorgan reports strong third-quarter performance with $12.9 billion net income

From Investing.com: 2024-10-13 05:35:04

JPMorgan Chase reported a strong third-quarter performance, with $12.9 billion in net income, $4.37 EPS, and $43.3 billion in revenue, a 6% increase year-on-year. Consumer and Community Banking (CCB) maintained the top retail deposit share. Asset and Wealth Management (AWM) saw record quarterly revenues and long-term inflows. Common Equity Tier 1 (CET1) ratio remained stable at 15.3%. The bank expects 2024 net interest income (NII) ex-markets of roughly $91.5 billion.

In terms of finances, JPMorgan reported $5.7 billion in net income in Corporate and Investment Banking (CIB), driven by a 31% increase in investment banking fees. AWM revenue reached $5.4 billion, up 9% year-on-year. Stable checking account balances suggest consumers have completed spending cash buffers. Wholesale deposits are on the rise, and the bank has at least $30 billion in excess capital for potential increase.

Challenges include rising expenses to $22.6 billion, particularly due to increased compensation, and $3.1 billion in credit costs. Concerns abound about potential NII declines and inflated asset prices. Fears linger of entering the credit asset market in the current economic climate. Despite recent rate cuts, there hasn’t been a substantial uptick in borrowing interest.

CEO Jamie Dimon dismissed rumors of leaving for government service and discussed competition in market-making, highlighting firms like Jane Street. There are reservations about frequent Fed interventions in volatile markets and caution about tech valuations. Despite challenges, JPMorgan remains committed to supporting clients through credit asset creation when appropriate, focusing on organic growth and client service.



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