JPMorgan Chase & Co (NYSE:JPM, ETR:CMC) reported a strong third-quarter performance, surpassing Wall Street expectations with a surprise gain in net interest income (NII).
The bank posted earnings per share (EPS) of $4.37, beating the $4.01 estimate, while revenue reached $43.32 billion, topping the expected $41.63 billion.
The bank's NII, a key metric driven by rising interest rates, came in at $23.5 billion, above the $22.73 billion forecast.
Despite market expectations that US interest rates may decline in the near term, JPMorgan raised its NII guidance, signaling confidence in continued revenue growth from this stream.
Investment banking fees surged by 31% year-over-year, significantly outpacing estimates of a 16% rise, while the bank also saw an 8% increase in markets revenue.
However, some areas, like Consumer & Community Banking, faced challenges, with net income down 31% and deposits falling by 8%.
"We have an extraordinarily strong balance sheet,” CEO Jamie Dimon told shareholders.
JPMorgan maintains a strong capital position, with a CET1 ratio of 15.3%, as it balances growth initiatives with prudent risk management.
CFO Jeremy Barnum pointed to the results as consistent with a “soft landing or no landing” narrative, as the bank navigates the current economic landscape.
Shares of JPMorgan were up 4.4% by midmorning Friday.