NEW YORK (AP) – JPMorgan on Friday reported a 2% drop in third-quarter net income as it had to set aside more cash to cover bad loans.
Net income decreased to $12.9 billion from $13.2 billion in the same period last year. However, New York Bank’s earnings per share rose from $4.33 to $4.37 as the number of outstanding shares declined in the latest quarter. That beat Wall Street analysts’ expectations for earnings of $3.99 a share, according to FactSet.
JPMorgan set aside $3.1 billion to cover credit losses, up from $1.4 billion a year earlier.
Total revenue increased to $43.3 billion from $40.7 billion in the same period last year.
JPMorgan CEO Jamie Dimon said the bank continues to monitor “dangerous and worsening” geopolitical tensions. Dimon did not mention specific conflicts, but he has previously expressed concern about the war in Ukraine and rising tensions in the Middle East.
“Significant human suffering has occurred, and the outcome of these situations could have far-reaching implications for both short-term economic outcomes and, more importantly, the course of history,” Dimon said in a statement. ” he said.
Mr. Dimon often considers global and economic issues beyond the scope of banking. He is often seen as a banker to whom Washington and world leaders can turn for advice, whether asked or not. His comments tend to resonate across Washington and corporate America.
Net interest income, the difference between the interest banks receive on their loan portfolios and the interest paid on customer deposits, rose 3% to $23.5 billion. That exceeded expectations of $22.9 billion, according to FactSet.
The country’s big banks have benefited from rising interest rates over the past two years, which have slowed consumer and business spending by raising funding costs.
The Fed’s mid-September interest rate cut was implemented too late in the quarter to have a significant impact on business results, but investors are wondering how that rate cut, and expected future rate cuts, will affect banks’ performance going forward. I’m watching closely to see if I’ll give it.
Analysts currently expect JPMorgan’s net interest income to decline in the coming quarters, before returning to growth in the second quarter of 2025.
Fed officials cut interest rates to 4.8% from a 20-year high of 5.3% at their last meeting on September 18, and decided to cut rates by two more quarter-points in November and December. did.
Federal Reserve Chairman Jerome Powell said that remains the most likely outcome if the economy continues to perform as expected.
