JPMorgan Chase & Co. (JPM), a leading US investment bank, announced its earnings for the third quarter on Friday, revealing a net income of $12.90 billion, or $4.37 per share. This compares to a net income of $13.15 billion or $4.33 per share in the equivalent quarter of the previous year.
The bank's earnings surpassed the expectations of 15 analysts surveyed by Thomson Reuters, who had anticipated earnings of $4.01 per share for the quarter. It's important to note that analysts' projections generally exclude extraordinary items.
JPMorgan's provision for credit losses was $3.11 billion, signifying a net reserve increase of $1.0 million, alongside net charge-offs amounting to $2.1 billion. This is a rise compared to the previous year's figure of $1.38 billion.
The reported total net revenue saw a 7 percent increase, reaching $42.65 billion, compared to last year's figures. On a managed basis, net revenue climbed 6 percent to $43.32 billion, from $40.69 billion in the same period the previous year. Analysts had predicted revenues of $41.63 billion for the quarter.
The bank's net interest income increased to $23.5 billion, marking a 3 percent rise, or 1 percent when excluding results from the Markets division. Additionally, non-interest revenue, excluding Markets, experienced a 17 percent growth from the prior year, totaling $12.7 billion.
Noninterest expenses totaled $22.6 billion, up by 4 percent, primarily due to higher compensation costs, which include performance-related pay and expansion in the workforce. This increase was slightly mitigated by reduced legal expenses.