JPMorgan Chase (JPM) Q3 2024 Results

JPMorgan Chase reported third-quarter results that beat profit and revenue estimates as the company earned more interest income than expected.

Here's what the company reported:

• Earnings: $4.37 per share vs. $4.01 per share LSEG estimate
• Revenue: $43.32 billion vs. estimate of $41.63 billion

JPMorgan said profit fell 2% from a year ago to $12.9 billion, while revenue rose 6% to $43.32 billion. Net interest income rose 3% to $23.5 billion, topping StreetAccount's estimate of $22.73 billion, driven by gains from investments in securities and loan growth in the credit card business.

CEO Jamie Dimon in a statement praised the company's quarterly results but also addressed broader efforts by regulators to force banks to hold more capital and expressed concern about rising geopolitical risks. He said conditions were “treacherous and getting worse.”

“We believe that rules can be written that promote a strong financial system without having undue consequences for the economy,” Dimon said, referring to the upcoming regulatory changes. “Now is an excellent time to step back and review the extensive existing rules – put in place for good reason – to understand their impact on economic growth” and the health of markets, he said.

The Wall Street department also contributed to the bank's results. Investment banking fees rose 31% to $2.27 billion in the quarter, topping estimates of $2.02 billion.

Fixed-income trading generated $4.5 billion in revenue, flat from a year earlier but beating StreetAccount's estimate of $4.38 billion. Stock trading rose 27% to $2.6 billion, beating estimates of $2.41 billion, according to StreetAccount.

The company also raised its net interest income forecast for full-year 2024 from the previous quarter and said NII will reach about $92.5 billion this year, up from the previous forecast of $91 billion. Annual spending is expected to be about $91.5 billion, down from the previous forecast of $92 billion.

America's largest bank has thrived in a rising interest rate environment, posting record net profit numbers since the Fed began raising interest rates in 2022.

Now that the Fed is cutting interest rates, the question is how JPMorgan will handle the change. Like other major banks, the bank's margins could come under pressure as returns on interest-generating assets such as loans fall faster than funding costs.

Last month, JPMorgan cut its expectations for net interest income and expenses in 2025, and analysts will want more detail on those forecasts.

Shares of JPMorgan rose about 2% in premarket trading Friday and are up 25% so far this year, outpacing the KBW Bank Index's 20% gain.

Wells Fargo also released quarterly results on Friday Bank of America, Goldman Sachs, Citigroup And Morgan Stanley Report next week.

This story is developing. Please check back for updates.