File photo of JPMorgan Chase & Co. logo in New York
(Archyde.com) – JPMorgan Chase on Friday reported a 17% drop in third-quarter profit, less than expected, as a jump in net interest income cushioned higher loan loss provisions and a drop in trading due to the deteriorating economic outlook.
The title of the largest American bank took 2% in pre-market trading following the publication of the results, which are closely followed to assess the real impact on American companies of the rate hikes decided by the Federal Reserve to curb the crisis. ‘inflation.
Consumers in the United States continue to spend, job openings are plentiful and businesses remain healthy, Chief Executive Jamie Dimon said in a statement, warning of rising interest rates. , inflation and geopolitical unrest.
JPMorgan thus reported a profit for the quarter ended September 30 at 9.74 billion dollars (10.02 billion euros), or 3.12 dollars per share, once morest 11.69 billion dollars, or $3.74 per share, a year earlier.
However, the bank’s adjusted earnings came in at $3.36 per share, well above analysts’ average estimate of $2.88, according to Refinitiv data.
Net interest income, excluding markets, increased by 51% to 16.9 billion dollars during the quarter, thanks to the rise in rates. For the fourth quarter, the bank expects that figure to reach regarding $19 billion.
JPMorgan also set aside $808 million in provisions this quarter as interest rate hikes stoked fears of a recession.
The bank posted $32.72 billion in revenue for the quarter, down from $29.65 billion a year ago, while revenue from its investment bank, one of JPMorgan’s core businesses , fell 43% to $1.7 billion.
Wells Fargo also reported lower third-quarter earnings on Friday and bolstered its credit loss reserves by setting aside $784 million.
(Reporting by Niket Nishant and Noor Zainab Hussain in Bangalore and Lananh Nguyen in New York, French version Dina Kartit, editing by Kate Entringer)
