(Boursier.com) — JP Morgan Chase, the American banking giant, published adjusted earnings per share of $4.33 for its third fiscal quarter, compared to a consensus of less than $4. Quarterly revenues totaled $39.9 billion, compared to the market consensus of $39.4 billion. Adjusted revenues were $40.7 billion versus expectations of $39.9 billion. Credits total approximately $1.31 trillion and deposits total $2.38 trillion. Provisions for credit losses reach $1.38 billion. Interest income supported the accounts over the quarter. Quarterly net profit reached $13.15 billion, up from $9.74 billion a year earlier. Net interest income increased 30% to $22.9 billion.
Note that the bank also benefited from the takeover of First Republic Bank in May, which provided $173 billion in loans. In total, JP Morgan’s assets under management at the end of the quarter totaled nearly $3.2 trillion, up 22% year-on-year.
Jamie Dimon, CEO of the bank, comments: “The group recorded another quarter of strong results, generating net profit of $13.2 billion and ROTCE of 22%, although we recognize that these results benefit from our excess gains on both net interest income and lower than normal credit costs, both of which will normalize over time. Our CET1 capital ratio increased further to 14.3%. Our total capacity loss absorption (equity plus long-term debt) is at an extraordinary level of $496 billion, while loans, which constitute our riskiest assets, amount to $1.3 trillion. Our liquidity is extraordinarily high with liquidity and marketable securities of around 1,400 billion dollars. In view of the finalization of Basel III, we intend to adapt and achieve the new rules very quickly, as we have shown by the pass. However, we caution that such significant regulatory changes are likely to have real-world consequences for markets and end users.”
Dimon adds: “Currently, U.S. consumers and businesses remain generally healthy, although consumers are spending their excess cash reserves. However, continued tight labor markets as well as extremely high levels of government debt, with budget deficits the highest on record in peacetime, increase the risks that inflation will remain high and that interest rates will rise further from there. Moreover, we still do not know the long-term consequences of quantitative monetary tightening, which reduces the liquidity of the system at a time when market-making capabilities are increasingly limited by regulation. Moreover, the war in Ukraine, combined with last week’s attacks on Israel, could have a considerable impact on energy and food markets, global trade and geopolitical relations. This may be the most dangerous time the world has seen in decades. While we hope for the best, we are preparing the firm for a wide range of outcomes so we can consistently deliver for clients, regardless of the environment.”