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JPMorgan Chase profit, adjusted revenue beat estimates amid higher interest rates

Published 10/13/2023, 06:51 AM
Updated 10/13/2023, 09:46 AM
© Reuters -- JPMorgan Chase (NYSE:JPM) has reported revenue and profit in the third quarter that topped expectations, as the biggest U.S. bank by assets said it was aided by higher interest rates that helped offset lower deposit balances.

Adjusted revenue in the three-month period came in at $40.7 billion, beating Bloomberg consensus estimates of $39.9B. The figure was down slightly from $42.0B in the second quarter, but surged by 21% year-on-year.

The top-line number pushed net income up to $13.2B, also above analysts' projections of $11.9B.

Shares in JPMorgan surged in early trading on Friday.

"[W]e acknowledge that these results benefit from our over-earning on both net interest income and below normal credit costs, both of which will normalize over time," Chief Executive Officer Jamie Dimon said in a statement on Friday.

Net interest income -- the difference between what a bank pays on deposits and what it earns from assets like loans -- registered $22.9B. It was an increase of 30% annually, driven by elevated rates and higher revolving balances in its card services unit. JPMorgan has been able to charge more for its loans during the Federal Reserve's months-long campaign of rate hikes, but has not offered significantly more in returns to savers for deposits.

Meanwhile, provisions for credit losses fell by 10% to $1.4B, reflecting net charge-offs -- or loans that have been marked as unrecoverable -- of $1.5B and a net reserve release of $113 million. Analysts had anticipated provisions of $2.5B.




Latest comments

Interesting that there was no mention of commercial real estate losses or writeoffs. Real deposits are fleeing the banking system, with their near-zero interest payouts on savings accounts. Meanwhile, commercial and residential foreclosures are on the increase. No bank is immune to the coming financial crisis. Nit even the big boys.
JPMorgan lucked out in the last financial crisis by getting out of mortgage securities right before 2008 and then getting nice friendly govt assistances in taking over troubled Bear Stearns and Washington Mutual, don't think they will be so lucky in the next recession
I don't understand what going on
Who could have guessed that high interest rates would be profitable for banks? 💩💩💩
Welcome Friday
US import prices lower and export prices higher than expected. it is like buy low and sell high for USA. VERY BULLISH
Has quite a few accounts that aren't FDIC insured.
Banks win regardless... good times, bad times... don't even feel sorry at all for their "overworked" employees
Adjust is good idea
Adjusted revenue.......
not .true
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