JPMorgan Chase Tuesday beat analysts’ estimates for the third quarter, as trading and investment banking generated about $700 million more in revenue than expected.
Here’s what the company reported:
- Earnings per share: $5.07 versus $4.84 expected, according to LSEG
- Income: $47.12 billion versus $45.4 billion expected, according to LSEG
The bank said in a statement that its profit jumped 12 percent to $14.39 billion, or $5.07 per share, from a year earlier. Revenue rose 9% to $47.12 billion.
So far this year, America’s biggest banks have benefited from President Donald Trump’s administration.
They reaped higher trading revenues as the upheaval caused by his policies shook markets around the world, forcing investors to reposition themselves. JPMorgan’s trading volume of $8.9 billion was a record for a third quarter, CEO Jamie Dimon said in the release.
Investment bankers are busier thanks to a looser stance on mergers, and Trump’s banking regulators have proposed ways to relax capital requirements and stress tests. Stock indexes at or near record highs have helped the wealth management divisions of banks, including JPMorgan.
Fixed-income trading at JPMorgan jumped 21% in the quarter to $5.6 billion, about $300 million above StreetAccount’s estimate.
Stock trading jumped 33% to $3.3 billion, about $300 million more than expected.
Investment banking fees jumped 16% to $2.6 billion, beating StreetAccount’s estimate of $2.5 billion.
Dimon said that while each of its major business lines performed well amid favorable economic conditions, it was preparing the company for possible turbulence ahead.
“Even though there have been some signs of a slowdown, particularly in terms of job growth, the U.S. economy has remained resilient overall,” Mr. Dimon said.
“However, there continues to be a heightened degree of uncertainty arising from complex geopolitical conditions, tariff and trade uncertainties, high asset prices and the risk of persistent inflation,” Mr. Dimon said. “As always, we hope for the best, but these complex forces reinforce why we are preparing the company for a wide range of scenarios.”
JPMorgan’s allowance for credit losses rose 9% to $3.4 billion, beating the estimate of $3.08 billion, indicating the company is bracing for an increase in defaults in the future.
Big banks have outperformed regional lenders so far this year; the KBW banking index climbed almost 15%, while the regional KBW banking index fell around 1%.
Goldman Sachs, Citi Group And Wells Fargo also publishes its results on Tuesday, with Bank of America And Morgan Stanley publication of results on Wednesday.
This story is developing. Please check again for updates.
