JPMorgan net income falls as bank sets aside more money to cover potential bad loans
JPMorgan says its net income fell to $12.9 billion in the third quarter.
NEW YORK — JPMorgan's net income fell 2% in the third quarter as the bank had to set aside more money to cover bad loans, but the results topped Wall Street estimates and shares rose in morning trading.
Net income fell to $12.9 billion from $13.2 billion in the year-ago quarter, the New York bank said Friday. However, earnings per share rose to $4.37 from $4.33 because there were fewer outstanding shares in the latest quarter. The result beat Wall Street analysts’ forecasts, which called for a profit of $3.99 a share, according to FactSet. Total revenues rose to $43.3 billion from $40.7 billion a year ago.
JPMorgan set aside $3.1 billion to cover credit losses, up from $1.4 billion in the same period a year ago. Consumers' credit card debt has been on the rise due to the lingering impact of the bout of inflation that hit the U.S. economy starting in 2021 and delinquencies have been rising. But JPMorgan Chief Financial Officer said on a call with analysts that the consumer is “on solid footing."
Net interest income, the difference between the interest the bank takes in on its loan portfolio and the interest in pays out on customer deposits, rose 3% to $23.5 billion. That came in above estimates of $22.9 billion, according to FactSet. JPMorgan raised its forecast for net interest income for the full year, but cautioned the measure should start to decline as the Federal Reserve continues to cut interest rates.
JPMorgan shares rose 4.6% in morning trading.
The country’s biggest banks have benefitted from higher interest rates for the last two years. The Fed’s mid-September interest rate cut happened too late in the quarter to significantly influence
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