JPMorgan (JPM) Tops Q3 EPS by 69c

JPMorgan (NYSE: JPM) reported Q3 EPS of $2.92, $0.69 better than the analyst estimate of $2.23. Revenue for the quarter came in at $29.1 billion versus the consensus estimate of $28.29 billion.

• Reported revenue of $29.1 billion; managed revenue of $29.9 billion2
• Credit costs of $611 million included $569 million of net reserve releases
• Average loans6 up 1%; average deposits up 30%
• $1.3 trillion liquidity sources, including HQLA and unencumbered marketable securities7
• CCB
• ROE 29%
• Average deposits up 28%; client investment assets up 11%
• Average loans6 down 7%; credit card sales volume8 down 8%

Jamie Dimon, Chairman and CEO, commented on the financial results: “JPMorgan Chase earned $9.4 billion of net income on nearly $30 billion of revenue and we maintained our credit reserves at $34 billion given significant economic uncertainty and a broad range of potential outcomes. We further strengthened our capital and liquidity position, increasing CET1 capital to $198 billion (13.0% CET1 ratio, up 60 basis points after paying the dividend) and liquidity sources to $1.3 trillion. The Corporate & Investment Bank continues to be a big driver of Firm performance with Markets revenue up 30% and Global IB fees up 9%. CIB and Commercial Banking continue to attract and retain deposits given our strong client franchise as our clients remain liquid. Asset & Wealth Management generated record revenue and net income and saw strong net inflows into long-term products.”

Dimon added: “In Consumer & Community Banking, we continue to add deposits, up 28% versus last year – and based on the most recent FDIC data we ranked #1 in U.S. retail deposits for the first time ever as we are investing in the business to better serve our customers’ needs. The Firm recently received approval to open branches in 10 additional states which would allow us to operate branches in all of the lower 48 U.S. states. Home Lending benefited from strong production margins, and combined debit and credit card spend showed positive year-over-year growth in September for the first time since the widespread shutdowns.”

Dimon concluded: “I want to thank our employees around the world for their tireless work in helping our clients and communities impacted by the COVID-19 pandemic over the past several months. Despite significant uncertainty in the environment, the Firm is unwavering in its commitment to drive an inclusive economic recovery, advance sustainable solutions to address climate change and improve the lives of our customers, especially those in underserved communities.”

For earnings history and earnings-related data on JPMorgan (JPM) click here.

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