JP Morgan (JPM) 2024 Q3 Earnings Digest

JPMorgan Chase & Co. announced a net income of $12.9 billion for the third quarter of 2024, a decrease of 2% compared to the third quarter of 2023. Earnings per share were $4.37. Net revenue was $43.3 billion, up 6% year-on-year. This was driven by increases in both net interest income and noninterest revenue, excluding the impact of Markets in both cases. Net interest income, excluding Markets, grew by 1% year-on-year. This growth was driven by balance sheet mix and securities reinvestment, increased revolving balances in Card Services, and increased wholesale deposit balances, offset by lower deposit balances in the Banking & Wealth Management segment, as well as deposit margin compression across the company. Noninterest revenue, excluding Markets, was up 17%. This excludes the impact of net investment securities losses compared to the prior year. Including these losses, noninterest revenue, excluding Markets, grew by 10% year-over-year, due to higher asset management fees in the Asset & Wealth Management and Consumer & Community Banking segments, as well as higher investment banking fees. Markets revenue grew by 8% year-over-year to $7.2 billion. Expenses increased by 4% to $22.6 billion. This increase was driven by higher compensation costs, including revenue-related compensation and growth in the number of employees, partially offset by lower legal expenses. Credit costs totaled $3.1 billion, a 125% increase from the third quarter of 2023. The company repurchased $6 billion of common stock this quarter, in part due to the sale of Visa shares. JPMorgan Chase had $1.5 trillion in cash and marketable securities, and $1.3 trillion in average loans. The company’s Standardized Common Equity Tier 1 (CET1) capital ratio was 15.3%. Return on tangible common equity was 19%.