Sign in Subscribe
Banks (Finance)

JPMorgan Chase's Third-Quarter Earnings Miss Expectations Amid Choppy Markets

Strategic Insights

— 1 min read

Investor's Business Daily reported that JPMorgan Chase's third-quarter earnings fell short of analysts' estimates due to a decline in revenue, despite efforts to curb costs. The bank's net income remained steady, but revenue decreased 6.4% to $23.5 billion, missing the expected $23.7 billion. Trading revenue slipped 15% to $4.34 billion, with JPMorgan citing "too high" estimates for Q4 earnings.

The bank's total assets stood at $2.4 trillion as of September 30, down 1% from a year earlier. Return on tangible common equity rose to 15%, up two percentage points from Q3 2014, and the common equity Tier 1 ratio was an estimated 11.4%. JPMorgan highlighted the exceptional credit quality of its loans, with a 9% growth to $809.5 billion.

Key Takeaways:

  • JPMorgan Chase's third-quarter earnings missed estimates, with a 6.4% decline in revenue to $23.5 billion.
  • Trading revenue dropped 15% to $4.34 billion, with the bank citing "too high" estimates for Q4 earnings.
  • Total assets stood at $2.4 trillion as of September 30, down 1% from a year earlier.
  • Return on tangible common equity rose to 15%, up two percentage points from Q3 2014.
  • JPMorgan highlighted the exceptional credit quality of its loans, with a 9% growth to $809.5 billion.
  • The bank's non-interest expense rose 6% to $15.4 billion, while consumer and business banking net income increased 3% to $954 million.
  • Mortgage banking net income grew 29% to $602 million, and investment-banking revenue rose 5% to $1.6 billion.
  • Debt-underwriting fees increased 17% to $840 million, while equity underwriting fees declined 35% to $269 million.

Statistics:

  • Revenue fell 6.4% to $23.5 billion in the third quarter.
  • Trading revenue dropped 15% to $4.34 billion.
  • Total assets stood at $2.4 trillion as of September 30, down 1% from a year earlier.
  • Return on tangible common equity was 15%, up two percentage points from Q3 2014.
  • Loan growth was 9% to $809.5 billion.
  • Non-interest expense rose 6% to $15.4 billion.

Sources:

  • Investor's Business Daily, "JPMorgan Chase's Q3 Earnings Miss Estimates Amid Choppy Markets"
  • Thomson Reuters, "JPMorgan Chase Earnings Q3 2015"
  • Investor's Business Daily, "Bank of the Ozarks Earnings Miss Views by a Penny"

Read more