JPMorgan notches another net interest income record, lifts guidance
JPMorgan Chase & Co posted another quarter of record net interest income and boosted its forecast for the year as the company benefits from higher interest rates and its purchase of First Republic Bank.
The biggest US bank also reduced its reserves for loan losses even as chief executive officer Jamie Dimon warned that the economic outlook was getting cloudier, especially given rising geopolitical risks with wars raging in Ukraine and the Middle East.
Jamie Dimon. AP
“This may be the most dangerous time the world has seen in decades,” Dimon said in a statement on Friday. He also issued notes of caution about the records set in the third quarter. “These results benefit from our over-earning on both net interest income and below normal credit costs, both of which will normalise over time.”
JPMorgan’s results mirror similar gains at Wells Fargo & Co, which reported Friday that net interest income — the difference between what a bank earns on loans and the amount it pays out on deposits — also topped estimates.
Separately, Citigroup reported a larger-than-expected $US2.8 billion windfall which boosted total fixed-income trading 14 per cent and added to better-than-expected revenue, costs and even loan performance. Net income — which analysts estimated would fall 22 per cent — rose slightly, the New York-based firm said Friday.
Shares in all three major US banks were higher at midday. JPMorgan advanced 3.3 per cent, Wells Fargo gained 3.5 per cent and Citi was 2.5 per cent higher.
The third-quarter reports offer the latest look at how US consumers and businesses are faring as the Federal Reserve leaves borrowing costs higher for longer than most economists had predicted.
JPMorgan’s NII was $US22.9 billion in the three months
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