JPMorgan Chase released its latest earnings report before opening bell this morning, posting earnings of $1.58 per share on $24.7 billion in reported revenue and $25.5 billion in managed revenue. Analysts had been expecting earnings of $1.39 per share on $23.99 billion in revenue. In last year’s third quarter, the bank posted $1.68 per share in earnings and $23.54 billion in managed net revenue.
JPMorgan Chase records strong growth
Net interest income grew 6% to $11.9 billion, beating the FactSet consensus estimate of $11.7 billion.
Average core loans grew 19% as JPMorgan Chase reported record growth in average deposits, which increased 11% or $58 billion. The bank had 26 million active mobile customers, representing a 17% increase. Credit card sales volume grew 10%, while merchant processing volume increased 13%. The Corporate and Investment Bank division recorded $9.455 billion in net revenue, compared to the year-ago quarter’s $8.68 billion. Net income for the division grew to $2.9 billion, representing an increase of $1.4 billion on the back of growth in net revenue and reduced legal expenses.
JPMorgan Chase’s Commercial Banking segment’s net revenue grew to $1.87 billion from $1.644 billion in last year’s third quarter. The segment’s net income surged 50% to $778 million. The Asset Management business recorded $3.05 billion in net revenue, marking growth from last year’s $2.9 billion. Net income for the segment grew 17% to $557 million.
The Corporate division posted net losses of $165 million and net revenue of -$188 million. In the year-ago quarter, the bank reported $1.7 billion in net income, mostly due to $1.9 billion in tax benefits.
JPMorgan Chase updates capital position
The bank’s tangible book value per share grew to $51.23, compared to the FactSet consensus of $50.85. JPMorgan Chase’s Common Equity Tier 1 stood at 11.9% at the end of the quarter, while its Basel III Common Equity Tier 1 capital was at $181 billion.
“We delivered a 13% ROTCE and over $6 billion of net income in a third quarter,” said JPMorgan Chase Chairman and CEO Jamie Dimon in a statement. “We have provided credit and raised capital this year totaling $1.7 trillion for our customers, small businesses, clients and governments around the world. It’s a testament to the power of our platform and our people. To remain best-in-class, we continue to invest significant resources in talent development, innovation, technology, security and controls.”
Shares of JPMorgan Chase jumped by as much as 1.54% to $68.78 in premarket trading this morning.