JPMorgan Chase & Co ( NYSE:JPM , XETRA:CMC ), the US banking group, reported third-quarter net income of $15.3 billion, up 6% year on year, but missed analysts' forecasts for earnings and revenue.
The bank earned $5.57 per share on reported revenue of $50.2 billion, below market expectations of $5.93 per share and $51.23 billion in revenue.
A $658 million loss on investment securities reduced earnings per share by $0.18, while net income excluding the item reached $15.8 billion, or $5.75 per share.
Managed revenue, which adjusts reported figures to help assess business performance, rose 8% to $50.9 billion, supported by stronger interest income and higher revenue across several operating divisions.
Net interest income, the difference between interest earned and interest paid, increased 13% to $27.1 billion, reflecting higher deposit balances and growth in card and wholesale lending.
Market revenue climbed 15% to $10.3 billion, driven by a 49% increase in equity trading, which offset a 4% decline in fixed-income markets revenue.
Investment banking fees increased 14% to $3 billion, primarily because of higher advisory fees, while revenue at the asset and wealth management division rose 14% to $6.9 billion.
Consumer and community banking revenue increased 9% to $21.2 billion, supported by card services, auto lending and wealth management, while the bank added more than 650,000 net new checking accounts.
However, non-interest expenses rose 12% to $27.3 billion, driven by higher compensation, technology spending, marketing costs and distribution fees.
The provision for credit losses fell to $2.7 billion from $3.4 billion a year earlier, including $2.2 billion in net charge-offs and a $539 million net reserve build.
Chief executive Jamie Dimon said client activity in markets and investment banking had moderated somewhat during the quarter, despite continued strength across the bank's businesses.
Dimon also warned that large fiscal deficits, persistent inflation, elevated asset prices, rising interest rates and geopolitical conditions remained risks for the economy, although business investment and consumer spending continued to provide support.
The results highlight the bank's ability to generate earnings growth across its core businesses, while the shortfall against market expectations and higher operating expenses tempered the headline performance.
