JPMorgan misses quarterly profit estimates for first time in nearly three years

JPMorgan Chase fell short of quarterly profit estimates for the first time in nearly three years on Tuesday, 13 October, Reuters reported, as slower dealmaking and softer bond trading offset another strong year for Wall Street trading desks.

The results

• Net income was $15.3 billion, or $5.57 per share, for the three months ended 30 September, up from $14.4 billion, or $5.07, a year earlier.
• Analysts compiled by LSEG had expected $5.85 a share. It was the bank’s first profit miss since the fourth quarter of 2023.
• Markets revenue climbed 15% year on year. Equities surged 49% as investors repositioned around rates and energy prices; fixed-income trading fell 4%.
• Investment banking fees rose 14% from a year earlier but dropped 8% from the second quarter.

What management said

CEO Jamie Dimon said investment banking fees rose at a mid-teens rate, helped by client activity that “did moderate somewhat during the quarter.” Net interest income excluding markets rose 6% to $24.7 billion, with average loans up 10%. The bank guided full-year interest income to roughly $106.2 billion market-dependent, or $97.2 billion excluding markets.

The stock fell nearly 3% right after the release, then reversed to trade about 0.8% higher in premarket, Reuters said.