JPMorgan Stock Rises After Better-Than-Expected Q3 Earnings Report: Retail’s Cheering The Results

Shares of banking giant JPMorgan Chase & Co (JPM) rose nearly 1.5% in Friday’s pre-market trading after the lender’s third-quarter results topped Wall Street estimates, led by a higher-than-expected interest income.

Revenue came in at $43.32 billion versus an estimated $41.63 billion while earnings per share (EPS) came in at $4.37 compared to an estimated $4.01. Net income fell 2% year-over-year to $12.89 billion.

Net interest income, the difference between interest earned and interest expended, rose 3% to $23.5 billion surpassing an estimate of $22.73 billion. Non-interest revenue rose 11% to $19.8 billion.

Despite managing to beat Wall Street expectations, CEO Jamie Dimon presented a dour outlook.

Talking about the current geopolitical situation, Dimon said conditions are treacherous and getting worse and that the outcome of these situations could have far-reaching effects on both short-term economic outcomes and more importantly on the course of history.

“Additionally, while inflation is slowing and the U.S. economy remains resilient, several critical issues remain, including large fiscal deficits, infrastructure needs, restructuring of trade and remilitarization of the world. While we hope for the best, these events and the prevailing uncertainty demonstrate why we must be prepared for any environment,” Dimon said.

The bank reported a 31% jump in its investment banking fees during the quarter, driven by higher fees across all products. At the same time, markets revenue rose 8% to $7.2 billion.

Meanwhile, provision for credit losses jumped to $3.11 billion during the quarter from $1.38 billion a year earlier and $3.05 billion in the previous quarter.

The bank said that provisions reflected net charge-offs of $2.1 billion and a net reserve build of $1.0 billion. Net charge-offs of $2.1 billion were up $590 million, predominantly driven by card services, it said.

Following the announcement, retail sentiment on Stocktwits flipped into the ‘bullish’ territory (61/100) from the ‘bearish’ zone a day ago.

Stocktwits users with a bullish outlook on the firm are expecting a near-term rally in the shares of the bank.

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