JPMorgan Chase Misses Earnings Estimates

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JPMorgan Chase released its latest earnings report after closing bell tonight. JPMorgan announced recently that it was shifting the time of its release to after-hours rather than releasing it before opening bell as it has in the past. The change also bucks the wider trend of the financial industry in general, as banks and most financial firms report in the morning.

Now to the results: the bank posted adjusted earnings of $1.32 per share on net revenue of $23.5 billion for the third quarter. Analysts had been looking for earnings of $1.37 per share on $23.69 billion in revenue. In last year’s third quarter, JPMorgan posted revenue of $25.1 billion.

Net income rises 22%

GAAP revenue was $22.8 billion for the quarter, while GAAP earnings were $1.68 per share, compared to last year’s 1.35 cents per share. Items during the quarter included $2.2 billion in tax benefits, which amounted to 57 cents per share, and $1 billion in legal expenses or 26 cents per share.

JPMorgan’s Consumer and Community Banking division recorded net income of $2.6 billion, a 4% year over year increase. The segment’s revenue fell 4% to $10.9 billion. The Corporate and Investment Bank segment saw net income fall 13% to $1.5 billion and net revenue decline 10% to $8.2 billion. The Commercial Banking division saw net income fall 23% to $518 million and net revenue decline 3% to $1.6 billion.

The Asset Management business saw net income fall 19% to $475 million and net revenue decline 5% to $2.9 billion. JPMorgan’s Corporate division saw net income climb from $95 million last year to $1.7 billion in this year’s third quarter. However, the segment’s net revenue was a loss of $50 million, which was still an improvement from last year’s loss of $75 million.

“We had decent results this quarter,” said JPMorgan Chase Chairman and CEO Jamie Dimon in a statement. “We saw the impact of a challenging global environment and continued low rates reflected in the wholesale businesses’ results, while the consumer businesses benefited from favorable trends and credit quality. Overall, our risk management discipline and diversified platforms across the businesses are serving us well.”

JPMorgan sees deposits rise

JPMorgan reported a 9% increase in Consumer and Business Banking average deposits and a 20% return on equity. It had more than 22 million active mobile customers, a 21% year over year increase. Merchant processing volume increased 11%, while loan balances increased 13%. The bank also saw average loan balances rise 7% to a new record.

The bank’s tangible book value per share rose 8% to $47.36, while its Basel III Common Equity Tier 1 Capital Ratio was 11.4%.

Shares of JPMorgan slipped as much as 0.58% to $61.20 per share in after-hours trading.

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