Company report

JPMorgan Chase (JPM) was the first major bank to report Q3 earnings and profits, its performance largely reflecting the state of the US economy and the strength of the financial markets.

JPMorgan Chase (JPM), the largest US bank by market capitalisation ($493.74bn), reported results for the 3rd financial quarter ended 30 September today before the opening of trading.

JPMorgan Chase shares were up 0.72% at the premarket, which may slightly offset the loss of 1.96% in the last week.

JPMorgan shares are up 30% since the beginning of the year and have added 61.4% in the last 12 months in total.

JPMorgan's Q3 report

Earnings per share rose 28% (from last year's value) to $3.74.

Total revenues rose 5% year-on-year to $30.44 billion, also beating Wall Street estimates of $29.8 billion.

Jamie Dimon, Chairman and CEO of JPMorgan, said the results were "strong" as the economy continued to show good growth despite the distortions and disruptions to Delta's supply chain.

The release of $2.1 billion in credit reserves also had a debilitating effect. JPMorgan continued to pool its reserves in preparation for the credit meltdown as "the outlook for the U.S. economy continues to improve. The spring pandemic suggests that banks have billions of dollars ready for the possibility of a credit meltdown.

JPMorgan's consumer division performed well. This is due to a rise in credit card delinquencies and the fact that customers are paying off their loans more slowly, which is generating more interest income for banks.

JPMorgan's asset and wealth management division's quarterly revenues rose 21% to $4.3bn, while investment banking revenues rose 45% to $3.28bn.

Income from securities markets and services decreased by 4% to USD 7.5 billion, while bond income fell by 20% to USD 3.6 billion; however, market income increased by 30% to USD 2.6 billion.

JPMorgan's assets increased by 17% to $3 trillion due to the increase in the equity market.

JPMorgan is the World's 2nd largest M&A on Wall Street after Goldman Sachs (GS).

Bank of America (BAC), Citigroup (C), Wells Fargo (WFC) and Morgan Stanley (MS) are expected to report quarterly on Thursday, and Goldman Sachs, Wall Street's leading investment bank, is due to report on Friday.