© Reuters
Investing.com – Morgan Chase (NYSE:) reported third-quarter revenue and profits that beat expectations, as the largest U.S. bank by assets said it benefited from higher interest rates that helped offset declining deposit balances.
JPMorgan stock is now up 3.5% to $150.91 per share, up $5.08.
Adjusted revenue in the three-month period was $40.7 billion, beating Bloomberg’s estimate of $39.9 billion. These numbers were just under $42.0 billion in the second quarter, but were up 21% compared to last year.
These numbers increased net income to $13.2 billion, which was also higher than analysts’ expectations of $11.9 billion.
CEO Jamie Dimon said in a statement on Friday: “[نحن] We acknowledge that these results benefit from an excess gain in net debt yields and lower than normal credit costs, both of which will recover over time.”
Net interest income — the difference between what a bank pays on deposits and what it earns on assets such as loans — rose to $22.9 billion. This was an increase of 30% annually, as a result of higher rates and higher revolving balances in the credit card services unit. JPMorgan was able to demand more interest on its loans during the Federal Reserve’s months-long rate hike campaign, but it did not deliver significantly greater returns to deposit holders.
On the other hand, provisions for losses on credit decreased by 10% to $1.4 billion, taking into account gross repayments – or loans marked as non-recoverable – amounting to $1.5 billion and releasing a net reserve of $113 million. Analysts were expecting provisions of $2.5 billion.
2023-10-13 15:09:00
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