JPMorgan Shares Gain After Profit Falls Less Than Expected

JPMorgan reported its third-quarter results on Friday, which saw a 17% drop in profit, less than analysts’ expectations.

The investment bank reported revenue of $33.49 billion, a 10% increase from the prior-year quarter. Revenue was positively impacted by fixed-income trading, which increased by 22%.

Furthermore, profit fell to $9.74 billion, or $3.12 per share. In addition, higher rates and a growing book of loans led to a 34% increase in net interest income to $17.6 billion.

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Shares of the biggest U.S. bank by assets are up 1.67% premarket.

Chief Executive Jamie Dimon said: “In the U.S., consumers continue to spend with solid balance sheets, job openings are plentiful and businesses remain healthy.”

However, it was not all plain sailing for the company, with Dimon adding that there are “significant headwinds,” such as inflation driving up global interest rates and uncertain impacts of quantitative tightening.

Elsewhere, the company set aside $808 million in reserves, down from $2.1 billion in reserves in the same quarter last year.

Investment banking, one of the bank’s largest segments, saw a 43% decline in revenue to $1.7 billion as the markets were affected by increasing inflation and recessionary worries.

JPMorgan shares have fallen 31% this year.