JPMorgan Chase reported third-quarter net income of $15.3 billion, or $5.57 per share, compared with $14.4 billion, or $5.07 per share, a year earlier. Reported revenue was $50.2 billion and managed revenue reached $50.9 billion. The Associated Press said earnings per share missed the market expectation of $5.93.
The bank recorded $658 million of net investment-securities losses, reducing earnings per share by $0.18. Excluding that item, net income was $15.8 billion, or $5.75 per share, and return on tangible common equity was 21%. Average loans increased 10% from a year earlier and average deposits rose 8%.
EQUITIES OFFSET SOFTER FIXED-INCOME TRADING
Markets revenue increased 15% from the prior-year quarter as equities revenue jumped 49%, offsetting a 4% decline in fixed-income markets. Investment banking fees rose 14% year on year but declined 8% from the second quarter as capital-markets activity moderated.
Consumer and Community Banking revenue increased 9%, and the bank added more than 650,000 net new checking accounts. Asset and Wealth Management revenue rose 14%, while assets under management reached $5.2 trillion after $263 billion of net client inflows.
CAPITAL DEPLOYMENT REMAINS UNDER SCRUTINY
JPMorgan reported a standardised common equity Tier 1 ratio of 13.9% and $304 billion of Basel III common equity Tier 1 capital. It paid $4.4 billion of common dividends and completed $664 million of net common-stock repurchases during the quarter, while management said repurchases had been reduced.
The quarterly result shows that loan, deposit and equity-trading growth can support earnings even when bond trading and securities valuations weaken. The next results will be watched for changes in credit costs, which were $2.7 billion this quarter, and for whether fixed-income activity and share repurchases recover as interest-rate and geopolitical risks evolve.