JPMorgan Chase & Co. (JPM) stock was up by about 4% in trading on Friday after the bank reported better-than-expected Q3 results. The bank’s earnings rose by 1% year-over-year to $4.37 per share, beating the consensus estimate of $3.99 per share.
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JPM’s Revenues Continue to Grow in the Third Quarter
JPM posted adjusted revenues of $43.3 billion, up 6% year-over-year. This came in ahead of analysts’ expectations for $41.4 billion.
In terms of JPM revenues generated from non-interest sources, these grew by 12% year-over-year to $19.25 billion in the third quarter. On the other hand, JPM’s net interest income (NII), grew 3% year-over-year to $23.4 billion. NII is the difference between interest income from assets and interest expense on liabilities.
JPMorgan also reported a 31% increase in investment banking fees, reaching $2.27 billion for the quarter, surpassing analysts’ estimates of $2.02 billion.
JPM CEO Dimon’s Cautious Commentary on the Q3 Conference Call
JPM CEO Jamie Dimon commented on the growing regulatory pressures and the rising geopolitical risks, which he described as “treacherous and getting worse.” Furthermore, Dimon was concerned about regulators’ efforts to require banks to hold more capital, and stated, “We believe rules can be written that promote a strong financial system without causing undue consequences for the economy.”
JPM Raises FY24 NII Outlook
JPM raised its FY24 guidance for net interest income (NII) and now expects to generate around $92.5 billion for the year, up from its prior forecast of $91 billion. Additionally, the company lowered its annual expense projections to $91.5 billion, compared to its earlier estimate of $92 billion.
Is JPM a Buy, Hold, or Sell?
Analysts remain cautiously optimistic about JPM stock, with TipRanks reporting a Moderate Buy consensus rating based on 14 Buys and five Holds. Over the past year, JPM stock has risen by more than 45%, and the average JPM price target of $225.64 is only slightly above the stock’s current trading price. Some of these analyst ratings are likely to change following JPM’s results today.
