JPMorgan’s figures for the third quarter of 2023 exceeded expectations, as did the second quarter. However, figures like revenue and EPS were higher in the previous quarter.
JPMorgan Chase (NYSE:JPM) has published earnings report for the third quarter of the year. JPMorgan has raised analysts’ expectations for profit in the third quarter of 2023, reported figures show.
JP Morgan Q3 2023
JPMorgan reported earnings per share (EPS) of $4.33 for the quarter, beating the estimate of $3.86. The bank also said its profit rose to $13.15 billion, a 35% increase on last year’s figures. The company’s revenue also reached $40.69 billion, exceeding the London Stock Exchange Group (LSEG) estimate of $39.63 billion.
Additionally, JPMorgan also beat estimates for total deposits of $2.38 trillion, up from $2.37 trillion, in addition to an 18% return on equity, above estimates by 16%. The company’s return on tangible common equity was 22% above the estimated 19.7%, while book value per share was $100.30 and tangible book value per share was $82.04.
JPMorgan’s Q3 non-interest expense was $21.76 billion, below the $21.78 billion estimate. Also, the company’s provision for credit losses was $1.38 billion, much lower than the estimated $2.49 billion. Overall, adjusted revenue for Q3 2023 stood at $40.69 billion, up from $39.92 billion.
At the time of writing, JPMorgan stock is at $147.33 in premarket trading, up 1.06% from the previous close of $145.81. According to MarketWatch data, JPM has gained 0.49% over the past 5 days, but fallen by more than 2% over the past 1 month and 3 months, respectively. JPM, on the other hand, has gained 8.73% year-to-date (YTD) and 31.14% over the last year.
JPMorgan Q2 and revenue targets
JPMorgan Chase also beat expectations when it released last quarter’s numbers. The bank reported total revenues of $42.4 billion for the second quarter of 2023, with most of the increase coming from increased interest income and rates. Unfortunately, this is lower than the third quarter figure. Also, adjusted EPS in Q2, at $4.37, was higher than that reported in Q3. Net income for Q2 also increased 67%, or 40% excluding the First Republic acquisition, to $14.5 billion.
In May, JPMorgan increased Its key revenue targets for 2023 in an investor presentation. The company set the target at $84 billion, which is $3 billion more than previous guidance in April. JPMorgan raised revenue targets shortly after acquiring First Republic Bank. At the time, there were concerns that larger banks acquiring smaller banks might make the larger banks a little more powerful. JPMorgan Chase is the world’s largest bank by market capitalization and total assets. As of August 2023, the bank has a valuation of $424.72 billion.
Despite JPMorgan’s strength, major banks continue to feel the impact of rising interest rates federal Reserve Initiatives have been taken to deal with inflation. Banks now have to increase deposits as customers are moving their money into money market funds and other high-yield products. To prepare for the fallout, JPMorgan and other banks have begun setting aside money to offset losses on loans.
In August, JPMorgan Expansion Its stake in Brazilian digital bank C6. The company now owns 46% of C6, up from 40% previously. JPMorgan first bought a stake in June 2021, and has now added even more stake as C6 has 25 million subscribers, which is 8 million more than reported in the initial investment. Neither bank disclosed specific financing terms.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip down the secrets of crypto stories to the basics so that anyone anywhere can understand without too much background knowledge. When Tolu is not deeply immersed in crypto stories, he enjoys music, loves to sing and is an avid film buff.
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