JPMorgan Chase & Co’s earnings beat analysts’ estimates thanks to record revenue on some investment banking projects as well as a more optimistic economic outlook that allowed the largest US bank to use the money it saved to avoid potential loan losses during the coronavirus crisis. Read more [JPMorgan Chase Achieves Record Profits Due To The Release of The Reserve Stock].
JPMorgan’s third-quarter profit grew 24% compared to the same period last year due to some fundamental factors, but analysts were more interested in signs that clients are returning to spending and investing after the market slump over the past year, as the bank’s results showed an increase in deposit rates and average loans, in addition to growth in credit card spending, which supported the growth of JPMorgan’s loan income, which recorded 2.5% during the second quarter.
Bank executives are optimistic that the economy is finally back on track after 19 months of outbreaks, business shutdowns and travel and stay-at-home restrictions, and they predict loan rates may not change significantly until at least next year, but it may grow with the support of signs of the world’s recovery from the devastating health crisis.
Overall, JPMorgan’s earnings were $11.7 billion, or $3.74 per share, for the quarter ended September 30, compared to earnings of $9.4 billion, or $2.92 per share, a year earlier, excluding the release of buffer stock and income tax benefits, the bank’s earnings will be $9.6 billion, or $3.03 per share, knowing that analysts’ expectations were $3 per share.
Revenue grew 2% to $30.4 billion during the quarter, beating analyst estimates of just $29.8 billion, and the bank maintained its guidance of $52.5 billion in net interest income for the year.
According to the stock market, JPMorgan’s stock fell 2.3% in morning trading, with other major banks’ shares also falling.