JPMorgan last missed profit expectations in the fourth quarter of 2023|Radhamadhab Sarangi
The largest bank in the US reported its first quarterly profit miss in nearly three years as market uncertainty slowed major business deals and reduced bond trading.
JPMorgan Chase posted a profit increase that came in below analysts’ projections.
The bank earned $5.57 per share in the third quarter, below the $5.85 projection. JPMorgan last missed profit expectations in the fourth quarter of 2023.
Looking ahead, CEO Jamie Dimon flagged a mix of economic and geopolitical risks—from persistent inflation and rising interest rates to large fiscal deficits and elevated asset prices—that could leave the company facing “a wide range of outcomes.”
However, strong stock market trading helped offset some of the weakness. Revenue from stock trading jumped 49% from a year earlier, while bond trading revenue fell 4%.
JPMorgan also benefited from stronger lending, with net interest income rising 6% to $24.7 billion. The bank raised its full-year income forecast, supported by healthy consumer spending and loan growth.
Meanwhile, Goldman Sachs posted stronger-than-expected earnings, buoyed by solid equity trading performance.