JAMIE DIMON: The economy is strong 'despite increasing economic and geopolitical uncertainties'
JPMorgan Chase (JPM), the largest U.S. bank by assets, kicked off third-quarter earnings on Friday for the big banks, reporting better-than-expected results against a backdrop of geopolitical uncertainty.
“JPMorgan Chase delivered strong results this quarter with top-line growth in each of our businesses, demonstrating the power of our platform,” CEO Jamie Dimon said in a statement. “The U.S. and the global economy continue to show strength, despite increasing economic and geopolitical uncertainties, which at some point in the future may have negative effects on the economy.”
The bank delivered earnings per share of $2.34 versus analysts’ estimates of $2.26 per share.
Adjusted revenue for the third quarter came in at $27.82 billion versus analysts’ estimates of $27.4 billion.
In the results, Dimon gave credit to the corporate tax cuts and revealed the banking behemoth’s first branch it opened in Washington, D.C. as a result.
“We are extremely excited to be expanding again, as smart regulatory policy and a competitive corporate tax system help us to deliver on our commitment to invest in our customers and communities,” Dimon said. “We just opened our first branch in Washington, D.C., which is one of hundreds of new branches that we will be opening in new markets, including Philadelphia and Boston. And every time we open branches in a new market, we bring the full force of JPMorgan Chase to that community.”
Dimon cheered the performance in the consumer bank, which saw credit-card sales up 12% year-over-year and merchant processing up 14% year-over-year.
“In Consumer & Community Banking we attracted record net new money this quarter, driving client investment assets up 14%, and we saw continued double-digit growth in card sales and merchant processing volume. Our customer satisfaction across CCB is at or near all-time highs, and we continue to grow deposits faster than the industry, even as the pace slows with rising rates.”
Breaking the results down further, revenue from FICC trading was $4.4 billion, down 2%. FICC results were dragged down by fixed income markets revenue, which came in at $2.8 billion, down 6%. The bank cited “mild weakness in Rates, Financing, Credit Trading and Securitized Products, as a result of compressed margins and tighter financing spreads in competitive markets.”
Meanwhile, equity markets revenue was $1.6 billion, up 17%.
Elsewhere, investment banking revenue was flat coming in at $1.7 billion, which the bank noted reflected “higher equity underwriting fees offset by lower debt underwriting and advisory fees.”
Shares of JPMorgan were trading up 1.34% in the early session.
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Julia La Roche is a finance reporter at Yahoo Finance. Follow her on Twitter. Send tips to laroche@oath.com.
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