JPMorgan Misses Profit Estimates Despite Higher Third-Quarter Earnings

JPMorgan Chase reported a 6 percent year-over-year increase in third-quarter profit to $15.3 billion, but its earnings fell short of analysts' estimates as some of its major Wall Street businesses recorded weaker revenue than in the previous quarter.

JPMorgan Chase reports higher third-quarter profit but falls short of analysts' earnings expectations. [Photo: J.P. Morgan]

Net revenue rose 8 percent to $50.2 billion from $46.4 billion a year earlier, according to a report by David Hollerith for Yahoo Finance.

The bank recorded $658 million in losses on investment securities during the quarter. Excluding those losses, earnings were $5.75 per share. Reported earnings were $5.57 per share, below analysts' expectations.

Chief Executive Jamie Dimon warned that large fiscal deficits, persistent inflation, elevated asset prices, rising interest rates and geopolitical conditions continued to pose risks, even as strong business investment and consumer spending supported the US economy.

“These forces may be manageable, but we remain prepared for a wide range of outcomes,” Dimon said.

The results opened a closely watched earnings season for major US banks, with analysts anticipating differences in revenue growth following a strong second quarter.

JPMorgan's trading revenue increased year over year, while investment-banking fees also rose. However, revenues from these businesses declined from the previous quarter.

Net interest income increased 13 percent to approximately $27 billion.