JPMorgan Chase & Co. reported the highest quarterly net interest income (NII) ever recorded in the third quarter. The full-year NII outlook has also been revised upwards. benefited from interest rate hikes by the US Federal Reserve.
According to the 14th quarter financial results announcement, NII for the third quarter was $ 17.6 billion (about 2.6 trillion yen). Expenses were also lower than analysts’ estimates, raising earnings above expectations.
“US consumer balance sheets are strong, consumer spending continues, job openings are strong and business remains healthy,” Chief Executive Jamie Dimon said in a statement. “However, there are strong headwinds in sight,” he said, citing high inflation leading to higher global interest rates, quantitative tightening (QT), war in Ukraine and volatility of supply and of oil prices.
Third quarter results were weighed down by a net loss of $ 959 million on investment stocks.
It raised its full-year NII outlook, excluding market assets, to approximately $ 61.5 billion. In July, it forecasted at least $ 58 billion.
JPMorgan temporarily suspended its share buybacks in July to quickly meet high capital requirements and maintain flexibility in response to a changing economic environment. Dimon said in a statement that he hopes to reopen early next year.
Non-interest expenses increased 12% to $ 19.2 billion, slightly below analysts’ expectations. Management expected full-year expenses to increase 8.6% over the previous year. The January-September period saw a 7% year-on-year increase.
Income from investment banking fees decreased by 47%. Trading income increased slightly. A 22% increase in fixed income trading income offset an 11% decline in equities.
The bad debt allowance is $ 1.5 billion. Analysts had expected $ 1.2 billion.
Original title:JPMorgan Records Record Net Interest Income On Fed Rate Hikes (1)、JPMorgan records record net interest income on Fed rate hikes(extract)
