Jamie Dimon.
Mark Lennihan/AP
JPMorgan published third-quarter earnings on Friday that beat Wall Street’s forecasts.
The bank’s net revenue grew 10%, but net income slid 17% as it built up its credit reserves.
CEO Jamie Dimon touted the US economy’s strength, but flagged a raft of global headwinds.
JPMorgan Chase reported third-quarter earnings on Friday that beat Wall Street’s expectations, pushing its stock up as much as 2% in premarket trading.
Here are the key numbers:
Revenue: $32.7 billion versus a consensus estimate of $32.09 billion from analysts polled by RefinitivAdjusted net income: $9.74 billion versus a $8.49 billion estimateAdjusted EPS: $3.12 versus a $2.88 estimate
The US banking giant posted a 10% increase in net revenue to about $33 billion, as sales rose in three of its four main divisions. However, its net income slumped 17% to below $10 billion, as profits fell in three segments.
The income decline largely reflected the bank adding a net $808 million to its credit reserves, after releasing $2.1 billion in the same period last year. Net charge-offs, or presumed bad debts, rose by $203 million to $727 million.
Higher interest rates helped to boosted JPMorgan’s net interest income by 34%. However, its non-interest income shrank by 8% due to a 47% plunge in investment-banking fees, nearly $1 billion in investment losses at its corporate bank, and weakness in home lending.
CEO Jamie Dimon championed the US economy in a statement. Yet he also underscored the challenges of rising prices and interest rates, tightening monetary policies, and the impact of Russia’s invasion of Ukraine on geopolitical risks and the global energy market.
“In the US, consumers continue to spend with solid balance sheets, job openings are plentiful and businesses remain healthy,” he said.
“However, there are significant headwinds immediately in front of us — stubbornly high inflation leading to higher global interest rates, the uncertain impacts of quantitative tightening, the war in Ukraine, which is increasing all geopolitical risks, and the fragile state of oil supply and prices,” he added.
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