JP Morgan Chase beats expectations as it begins Wall Street bank reporting session
JP Morgan Chase beat expectations in its third quarter results on Friday morning.
The figures
The bank reported revenue of $25.5bn (£20.8bn), ahead of analyst expectations of $24bn. The turnover figure was up 8.4 per cent.
Earnings, meanwhile, came in at $1.58 per share. This was ahead of the $1.39 per share that analysts were anticipating, according to Thomson Reuters.
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Net income for the period ending 30 September was reported at $6.3bn, down from $6.8bn in the same quarter in 2015 when it benefited from a $2.2bn tax benefit.
Why it’s interesting
The results are being reported at a time when big US banks are still battling squeezed net interest margins.
In advance of JP Morgan’s results, Tim Ghriskey, chief investment officer at Solaris Asset Management, New York, told City PM the bank has “had a nice string of earnings reports and we probably expect that to continue”.
He also noted the Chase Sapphire card had helped to drum up business.
Wells Fargo and Citigroup are also due to report their results today.
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What the company said
Chairman and chief executive Jamie Dimon:
We delivered strong results this quarter with each of our businesses performing well. We had record net income in commercial banking and record loan balances in asset management. The corporate & investment bank reported its best third quarter revenue. In the consumer businesses, we grew both loans and deposits double-digits, and our new card product, Sapphire Reserve, has gotten a great response – underscoring our unwavering commitment to enhancing customer engagement.