JP Morgan tops earnings estimates as investment banking fees jump

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JP Morgan Chase & Co. said Tuesday it had net income of $$9.443 billion, or $2.92 a share, in the third quarter, compared with $9.080 billion, or $2.68 a share, in the year-earlier period. Revenue fell to $29.941 billion from $30.014 billion. The FactSet consensus was for EPS of $2.23 and revenue of $28.215 billion. “JPMorgan Chase earned $9.4 billion of net income on nearly $30 billion of revenue and we maintained our credit reserves at $34 billion given significant economic uncertainty and a broad range of potential outcomes,” Chief Executive Jamie Dimon said in a statement. “We further strengthened our capital and liquidity position, increasing CET1 capital to $198 billion (13.0% CET1 ratio, up 60 basis points after paying the dividend) and liquidity sources to $1.3 trillion.” The bank said global investment banking fees rose 9% to $2.2 billion amid record volumes of capital raising during the pandemic. Total markets revenue rose 30% to $6.6 billion, as fixed income markets revenue rose 29% and equity markets revenue rose 32%. Net interest income fell 9% to $13.1 billion, while noninterest revenue rose 7% to $16.8 billion. The bank set aside $611 million in provisions for loan losses, down $903 million from the year-earlier period. Net charge-offs of $1.2 billion were down $191 million. Shares rose 0.8% premarket but are down 27% in the year to date, while the Dow Jones Industrial Average has gained 1%.
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