JPMorgan Chase Earnings Review: Pre-market Shares Jump on Q3 Revenue Beat
- Earnings Per Share (EPS) Actual $3.12 Vs $2.88 Estimated.
- Adjusted Revenue Actual $33.49bn Vs $32.35bn Estimated.
- Equity Sales and Trading revenue Actual $2.30bn Vs $2.48bn Estimated.
- CEO Jamie Dimon Hopes to Resume Share Buybacks Early Next Year.
US Banks' Q3 earnings kicked off today before the bell rang with heavyweight JPMorgan Chase (NYSE: JPM) leading the way. The anticipation and scrutiny of today’s results should come as no surprise, as investors get a view of banking performance in a bearish market and high interest rate environment. Bank earnings expectations has been continually downgraded over the past few months particularly within the corporate and investment banking sectors. We heard comments from JPMorgan CEO Jamie Dimon yesterday who stated it’s unlikely the US FED will be able to tame inflation without bringing on a recession. Should a recession be brought on Dimon said markets could retreat a further 20% to 30% while reiterating his faith in FED Chair Jerome Powell.
The earnings release saw revenue beat estimates with the investment banking division a particular surprise. Net interest income surged 34% as central banks rate hikes worked in the banks favor and offset losses in other sectors. JPMorgan CEO Jamie Dimon stated his hopes to resume share buybacks early next year. He did urge caution as he stated there are significant headwinds immediately in front of us which include stubbornly high inflation leading to higher global interest rates, the uncertain impacts of quantitative tightening, the war in Ukraine which is increasing all geopolitical risks and the fragile state of oil supply and prices.
JPM Initial Reaction
JPMorgan shares are trading around 32% down YTD with yesterdays close around $109.25 on the back of a surprising rally following the US CPI print yesterday. In the premarket we saw the share price spike around 2.74% to trade around $112.40.
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Written by: Zain Vawda, Market Writer for DailyFX.com
Contact and follow Zain on Twitter: @zvawda
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.