JPMorgan Chase’s stock rose on Friday after it said its third-quarter net income fell 16.7% to $9.74 billion, or $3.12 a share, from $11.69 billion, or $3.74 a share, in the year-ago quarter.
JPMorgan Chase & Co. shares rose Friday after the megabank beat analyst targets for third-quarter profit and revenue and said it would top forecasts for its net interest income in the coming quarter.
Overall, banks benefited from higher interest rates and strong trading volumes, but investment banking deal activity fell sharply. Banks also channeled more capital into reserves and away from their collective bottom lines to prepare for a potential economic downturn. Dimon said the bank remains “prepared for bad outcomes” so it can continue to operate even in the most challenging times.
The bank said a net credit reserve build of $808 million ate into its net income for the latest quarter, compared with a net reserve release of $2.1 billion in the prior year. Dimon said on a call with analysts that the bank expects to achieve its long-term target of 17% return on common equity in 2023, although “we may adjust that 17% a little bit, but it’s not a material adjustment.”
“Individual lines of business, such as investment banking and mortgages did predictably badly, but this was more than compensated for by strength in other areas of lending and in trading,” Marenzi said. The bank set aside $784 million in provisions for loan losses, after reducing them by $1.395 billion a year ago.
The bank reported “significant” year-over-year revenue growth of 42% in its commercial banking unit, while consumer banking fell 30% and mortgage banking dropped 80%, Leon said.Morgan Stanley shares fall on results Citigroup shares move higher by 1.3% after the bank posted stronger-than-expected profit, but revenue fell 1% after breaking out divestiture-related impacts, as growth in net interest income was more than offset by lower non-interest revenue.
Citigroup also said it continues to scale back its business in Russia . It will end “nearly all of the institutional banking services we offer” in the next quarter as it works to wind down its presence there.JPMorgan, Citi, Morgan Stanley head counts grow, while Wells Fargo trims
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