JPMorgan (JPM) Misses Q3 EPS by 9c
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JPMorgan (NYSE: JPM) reported Q3 EPS of $1.32, $0.09 worse than the analyst estimate of $1.41. Revenue for the quarter came in at $23.5 billion versus the consensus estimate of $24.01 billion.
Jamie Dimon, Chairman and CEO, commented on the financial results:
“We had decent results this quarter. 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.”
Dimon added: “We continue to focus on our commitments, optimize our balance sheet and manage our expenses. We are also building the businesses for the future, dedicating resources to controls, cybersecurity and technology.”
Dimon concluded: “Our position of strength allows us to make significant investments to transform the businesses we operate, deliver better experiences to our customers and clients, gain share and be positioned to be a long-term winner.”
SIGNIFICANT ITEMS
- Third-quarter results included the following significant items2:
- $2.2 billion of tax benefits ($0.57 per share increase in earnings)
- $1.0 billion aftertax firmwide legal expense ($0.26 per share aftertax decrease in earnings)
Net interest income was $11.2 billion, down 1% compared to the prior year, as lower investment securities balances and lower trading net interest income were predominantly offset by loan growth. Net interest income was up 2% quarter-over-quarter, driven by higher loan yields and balances.
Noninterest expense was $15.4 billion, down 3%, driven by lower CIB expense related to compensation and business simplification, partially offset by higher legal expense.
The provision for credit losses was $682 million, down 10%, due to lower net charge-offs, largely offset by lower reserve releases. In the current quarter, consumer reserve releases of $591 million13, reflecting continued improvement in home prices and delinquencies, were largely offset by an increase in reserves across the wholesale businesses of $310 million driven by select downgrades, including Oil & Gas.
For earnings history and earnings-related data on JPMorgan (JPM) click here.
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