JPMorgan shares edge lower after third-quarter FICC revenue miss

Investing.com - JPMorgan Chase posted third-quarter profit that was weaker than anticipated, as the Wall Street banking giant was hit by a slowdown in fixed-income markets revenue.

The largest U.S. bank reported profit of $15.31 billion, or $5.57 a share, in the quarter ending on September 30. Bloomberg consensus estimates had seen the earnings per share figure at $5.92.

Adjusted revenue climbed by 8% versus a year ago to $50.9 billion, versus projections of $51.37 billion. Fixed-income markets revenue, in particular, fell by 4% to $5.4 billion, due to “lower revenue in commodities, rates, credit and public finance, largely offset by higher revenue in currencies [and] emerging markets,” the company said.

Investment banking fees rose by 14% to $3 billion, thanks mostly to an uptick in advisory fees.

In a statement, CEO Jamie Dimon flagged that while markets revenue and investment-banking fees rose at a “mid-teens rate,” client activity “did moderate somewhat during the quarter.”

Tuesday’s results were also dented by $658 million of net investment securities losses. JPMorgan said this contributed to a $0.18 decrease in overall income per share.

Dimon added that while the U.S. economy continued to be fueled by solid business investment and ongoing consumer spending in the quarter, “large fiscal deficits, sticky inflation, elevated asset prices, rising interest rates and geopolitical conditions” are shifting “under the surface.”

“These forces may be manageable, but we remain prepared for a wide range of outcomes,” Dimon said.

Shares in JPMorgan were last trading higher in choppy premarket U.S. trading.

Original Article

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