JPMorgan (JPM) Crushes Estimates on M&A and IPO Strength

October 13, 2021 8:28 AM EDT

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Shares of JPMorgan (NYSE: JPM) are up 0.6% in pre-open Wednesday after the company reported much better Q3 results than the analysts were expecting.

JPM reported Q3 EPS of $3.74 to easily top the Street consensus of $3.00. Revenue for the quarter came in at $30.44 billion versus the consensus estimate of $29.76 billion.

“JPMorgan Chase delivered strong results as the economy continues to show good growth - despite the dampening effect of the Delta variant and supply chain disruptions,” Jamie Dimon, Chairman and CEO, said in a press release.

“We are making important investments, including strategic, add-on acquisitions that will drive our firm’s future prospects and position it to grow and prosper for decades. This quarter, we became the first bank to have branches in all of the lower 48 states, allowing us to serve more households, businesses and communities across the country. We are more than halfway through our plan to open 400 branches in new markets by the end of 2022, with approximately 30% of these branches in low-to-moderate income communities,” he added.

The bank experienced strong performance in its consumer & community banking division with debit and credit card spend up 26%. Home Lending soared 43% to $42 billion.

In the Corporate and Investment Bank sector, fees soared 52% driven by a surge in M&A activity and our strong performance in IPOs. Revenue for the investment banking unit soared 45% to $3 billion.

Commenting on the results, Goldman Sachs analyst Richard Ramsden said: "We estimate that the core ROTCE came in at 18.5% for the quarter versus our expectations of +17%. All in we believe that the market will see these results as a marginal positive given the combination of positive pre-provision operating trends and charge-offs which look set to continue to run below trend."

Shares of JPMorgan closed at $165.36 yesterday.

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