JPMorgan earns $15.3 billion in third quarter as interest income climbs

JPMorgan Chase reported third-quarter net income of 15.3 billion dollars on October 13, up 6 percent from a year earlier, or 5.57 dollars per diluted share compared with 5.07 dollars. Excluding 658 million dollars of net investment securities losses, or 498 million dollars after tax, net income was 15.8 billion dollars and earnings per share were 5.75 dollars, according to the earnings release the bank filed with the US Securities and Exchange Commission.

Reported revenue was 50.2 billion dollars, or 50.9 billion dollars on a managed basis. Net interest income rose 13 percent to 27.1 billion dollars. Noninterest expense increased 12 percent to 27.3 billion dollars, and the provision for credit losses was 2.7 billion dollars. Return on tangible common equity was 20 percent, or 21 percent excluding the securities losses.

All three main businesses increased profits. The Commercial & Investment Bank earned 8.2 billion dollars, up 20 percent, with revenue up 14 percent as markets revenue and investment banking fees each rose at a mid-teens rate. Consumer & Community Banking earned 5.7 billion dollars, up 13 percent, and Asset & Wealth Management earned 1.8 billion dollars, up 11 percent, with 263 billion dollars of client asset net inflows.

The Standardized CET1 ratio was 13.9 percent. Chief executive Jamie Dimon said the bank "reduced share repurchases this quarter," in line with a capital hierarchy that puts investing in the franchise and supporting clients first.

Dimon pointed to risks in the wider economy: "The U.S. economy continued to be fueled by strong business investment and ongoing consumer spending. However, large fiscal deficits, sticky inflation, elevated asset prices, rising interest rates and geopolitical conditions continue to shift under the surface. These forces may be manageable, but we remain prepared for a wide range of outcomes."