JPMorgan reports another quarter of record net interest income

investmentnews.com:

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. 

NII was $22.9 billion in the three months through Sept. 30, above analysts’ expectations. The biggest U.S. bank said it now expects to generate $88.5 billion from the revenue source this year.

“We acknowledge that these results benefit from our over-earning on both net interest income and below normal credit costs, both of which will normalize over time.,” Chief Executive Jamie Dimon said in a statement.

The CEO warned that the wars in Ukraine and the Middle East could have far-reaching consequences. “This may be the most dangerous time the world has seen in decades,” he said.

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. The third-quarter reports offer the latest look at how consumers and businesses are faring as the Federal Reserve leaves borrowing costs higher for longer than most economists had predicted. 

Shares of JPMorgan, up 8.7% this year through Thursday, climbed 0.8% in early New York trading. Wells Fargo jumped 2.4%.

JPMorgan also provided a snapshot of how the company is integrating First Republic Bank, which it purchased in a government-led auction in May. Dimon said in August that the process had been “excellent,” and that the regional bank turmoil that led to First Republic’s collapse is “over for now.” The bank said Friday that net income attributable to First Republic was $1.1 billion in the third quarter.

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