JPMorgan Chase (JPM) has issued third-quarter financial results that beat Wall Street forecasts on both the top and bottom lines.
The New York-based lender announced earnings per share (EPS) of $4.33 U.S., which was greater than the $3.95 U.S. consensus estimate among analysts who cover the bank.
Revenue in Q3 totaled $40.69 billion U.S., which was also above the $39.63 billion U.S. expected among Wall Street analysts.
The largest bank in the world with assets under management of $3 trillion U.S., JPMorgan Chase is seen as a bellwether for the U.S. financial industry.
Analysts look to JPMorgan’s earnings for clues to how the banking sector is faring amid surging interest rates and rising loan defaults.
The lender credited its strong Q3 results to greater levels of interest income and lower credit costs than expected.
JPMorgan Chief Executive Officer (CEO) Jamie Dimon celebrated the Q3 results but also urged caution amid a challenging macroeconomic and geopolitical environment.
“This may be the most dangerous time the world has seen in decades. While we hope for the best, we prepare the firm for a broad range of outcomes…,” said Dimon.
Dimon noted that JPMorgan Chase’s latest financial results were helped by its acquisition earlier this year of distressed regional lender First Republic Bank.
Profit at JPMorgan climbed 35% during Q3 but would have been up only 24% had First Republic been excluded from the results.
