JPMorgan's Q3 results exceeds estimates

JP Morgan Chase & Co., the largest bank in the United States, announced on Friday its quarterly earnings report for the third quarter of 2024, which showed a decline in annual net income despite an increase in revenue.

JP Morgan reported that its revenues increased by 6% year-over-year during the third quarter, reaching $43.3 billion, surpassing Wall Street analysts' expectations. However, JP Morgan's net profit decreased by 2% year-over-year in the third quarter, recording a net profit of $12.9 billion.

JP Morgan's earnings in the third quarter declined, as larger provisions for potential loan defaults offset the gains from investment banking services.

Meanwhile, diluted earnings per share rose by 1% during the three months ending in September compared to the same period last year, reaching $4.37 per share. JP Morgan's net interest income in the third quarter was around $23.41 billion, an increase of 3% from the same period last year, also exceeding Wall Street expectations.

The bank stated that factors contributing to the growth in net interest income (NII) included the reinvestment of securities primarily, along with increased balances in card services and higher wholesale deposit balances.

Commenting on the third-quarter results, JP Morgan's CEO, Jamie Dimon, noted that despite a slowdown in inflation and the resilience of the U.S. economy, there remain several critical issues, including a significant budget deficit, infrastructure needs, and trade restructuring.

As for trading, JP Morgan's stock (NYSE: JPM) rose by about 2.3% following the announcement of its quarterly results during pre-market trading on Wall Street, trading at $217.56.