JP Morgan shares bounce on revenue, earnings beat

J. P. Morgan Chase (NYSE: JPM) topped analysts' expectations for third-quarter earnings and revenue Friday as better-than-expected retail banking results offset weakness in bond trading.

The nation's largest bank by assets reported that revenue rose 5% to $27.8 billion, versus the $27.5 billion average estimate of analysts surveyed by Refinitiv. Earnings per share rose 33% to $2.34, beating expectations for $2.25.

Profit in the company's biggest division, consumer banking, surged 60% to $4.09 billion as the bank benefited from growing deposits and rising interest rates, resulting in more interest income. The retail bank attracted a record amount of fresh money, CEO Jamie Dimon said in the earnings press release.

The company's net interest margin, a widely-watched measure of profitability, rose five basis points from the previous quarter to 2.51 percentage points. That edged out the 2.5-percentage-point estimate, showing that the bank is still capitalizing on the interest rate environment.

The company posted $2.84 billion in fixed income revenue, a 10% decline that missed analysts' expectations for $2.96 billion.

J.P. Morgan's outlook for core loan growth was still 6-7%for 2018, the same guidance the bank gave in April. Some analysts had feared that lenders would report slowing loan growth amid rising rates and the administration's trade dispute.

Morgan is the first major U.S. lender to report earnings. The bank is closely watched by investors looking for clues into how the industry's Wall Street and Main Street businesses fared in the quarter.

Shares spiked $1.22, or 1.1%, to $109.23