JPMorgan Chase (JPM), the largest U.S. bank, has posted a rare miss on its quarterly financial results.
For the year’s third quarter, the New York-based lender reported earnings per share (EPS) of $5.57 U.S., which fell short of the $5.90 U.S. expected among analysts.
Revenue of $50.91 billion U.S. missed the consensus expectation among analysts for $51.22 billion U.S. Sales were up 8% from a year earlier.
Management at JPMorgan Chase blamed the poor results on a pullback in business from some of its biggest clients after a strong first half to the year.
JPMorgan CEO Jamie Dimon used the bank’s earnings release to issue a warning on “large fiscal deficits, sticky inflation, elevated asset prices, rising interest rates and geopolitical conditions.”
Dimon said these problems continue to “shift under the surface" despite the U.S. economy's perceived strengths powered by strong business investment and consumer spending.
“We remain prepared for a wide range of outcomes,” Dimon said in the earnings statement.
JPMorgan's trading revenue rose 15% in the third quarter to $10.30 billion U.S. Dealmaking fees climbed 14% year-over-year in the quarter.
However, revenue from both of those core business units was down from the previous quarter.
The bank's core lending revenue and net interest income rose 13% to $27 billion U.S.
JPMorgan's financial results kick-off earnings season for America’s largest banks, with analysts expecting a slowdown after a blistering start to the year, fueled by deals on Wall Street.
JPM stock is up 3% this year and trading at $334.30 U.S. per share.
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