TLDR
- JPMorgan (JPM) stock traded at $334.87, up 0.17%, after hitting $338.35 premarket
- Q3 profit rose 6% to $15.3 billion, or $5.57 per share, below the $5.90 analysts expected
- A $658 million securities loss weighed on results, and adjusted EPS was $5.75
- Jamie Dimon said the bank will favor organic growth over buybacks, with about $30 billion of excess capital
- The bank raised 2026 net interest income guidance by $1 billion and projected $107 billion for 2027
JPMorgan (JPM) stock traded at $334.87 on Tuesday, up 0.17%, after the bank reported third-quarter results. Earlier in premarket trading, the stock had climbed 1.21% to $338.35.
Profit rose 6% from a year ago to $15.3 billion, or $5.57 per share. Analysts had expected about $5.90.
The bank took a $658 million loss on investment securities during the quarter. Excluding it, earnings came to $5.75 per share, still short of the $5.93 consensus cited in one report.
Revenue rose 8% to $50.2 billion on a reported basis. Managed revenue came in at $50.9 billion.
Return on tangible common equity was 20%. That sits above the bankās 17% through-the-cycle target.
Trading and Banking Results
Trading revenue rose 15% to $10.3 billion, slightly below analyst forecasts. Equity markets jumped 49% to $5.0 billion, while fixed income fell 4% to $5.4 billion.
Both trading and dealmaking revenue fell from the second quarter. Investment banking fees still rose 14% from a year ago.
Net interest income rose 13% to $27.1 billion. Excluding markets, it came in at $24.7 billion, up 6%.
Expenses grew 12% to $27.3 billion. The bank pointed to higher pay, front-office hiring, marketing and technology spending.
Credit costs totaled $2.7 billion, including a $539 million reserve build. Net charge-offs fell $389 million from a year earlier to $2.2 billion.
Card charge-offs dropped to 2.91% from 3.15%. Management still expects the full-year rate to land near 3.2%.
Dimonās Comments and Capital
CEO Jamie Dimon warned that fiscal deficits, sticky inflation, high asset prices, rising rates and geopolitics ācontinue to shift under the surface.ā He added that these forces may be manageable, but the bank is ready for a range of outcomes.
Dimon said the bank now sees better returns from organic growth than from buybacks. JPMorgan has about $30 billion of excess capital to deploy.
The bank paid $4.4 billion in dividends and made $664 million in net buybacks. The $1.65 quarterly dividend equals a yield of 1.97%.
The CET1 capital ratio stood at 13.9%, down 30 basis points from the prior quarter. Total liquidity resources came to $1.5 trillion.
The bank raised its full-year net interest income guidance, excluding markets, by $1 billion to $97.5 billion. Its early 2027 forecast for the same figure is $107 billion.
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