Sat, December 03, 2022

JPMorgan Chase and its Third-Quarter Results

JPMorgan Chase and expectations

People across the U.S. heard about the JPMorgan Chase. Interestingly, JPMorgan Chase posted a third-quarter profit of $9.44 billion or $2.99 per share. Moreover, the firm generated revenue of $29.94 billion and this result surpassed expectations.

Interestingly, JPMorgan Chase is the bank by assets. Importantly, rather than building loan-loss reserves as it had done in the first half of the year. It actually reduced them by $569 million in the quarter, citing a runoff in its mortgage portfolio. As a reminder, the bank added more than $15 billion to loan loss reserves in the first two quarters of 2020.

The economic uncertainty as well as a broad range of potential outcomes, once more underline the severity of the situation. Thus, it makes sense to maintain reserves. Importantly, the fate of the industry is closely tied to the pandemic. Unemployment and business disruptions caused by the pandemic has the potential to affect the abilities of customers and companies to repay debts.

JPMorgan Chase and main findingsJPMorgan Chase and analysts

Let’s have a look at the results, to have a better understanding, how various divisions worked in the third quarter. The fixed income trading operations posted revenue of $4.6 billion. Moreover, equities trading generated $2 billion in revenue. This result exceeded the expectations by a total of about $400 million. 

It is worth noting that, investment banking revenue rose 12% to $2.1 billion thanks to higher stock and bond underwriting fees. 

Interestingly, JPMorgan Chase along with the rest of the industry is banned from repurchasing stock through 2020. 

The coronavirus pandemic created a lot of problems for companies around the world. Some of them are struggling to avoid the worst-case scenario. Despite all challenges, JPMorgan Chase surpassed expectations in the third quarter. Moreover, it has the ability to withstand various challenges. As can be seen from the information state above, the firm adapted to the new reality.

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