What to expect from JPMorgan Chase after the Solid Earnings Report?

    What to expect from JPMorgan Chase after the Solid Earnings Report?   As JPMorgan Chase is driven by strong M&A activity, its balance sheet is well positioned for what may happen in the next few quarters. The start of the earnings season was prompted by an earnings report this month from one of the largest companies, JPMorgan Chase (NYSE:JPM).

Solid profitable growth resulted from improved economic base.

Net income announced in the third quarter,  The Bank reported that its net income in the same period of last year also improved its asset management and banking performance. It broke the all-time record in M&A activities as investment banking. The biggest driver of all this growth was stock underwriting fees, which rose 41% as the IPO market remained hot. Looking at the first nine months of the year, JPMorgan Chase's JPM (NYSE) $172,22 +0,44 (+%0,26)  revenue of $92,4 billion was up 2% year-on-year, with net income up 124% to $37,9 billion.

Looking toward the fourth quarter and 2022

But in the fourth quarter, CFO Jeremy Barnum said he expects strong activity in M&A that will fuel year-over-year growth.

What to expect from JPMorgan Chase after the Solid Earnings Report?

CEO Jamie Dimon announced during the earnings call that JPMorgan Chase is the first bank to have branches in the lower 48 states. He added that the bank is halfway through opening 400 branches by the end of 2022, with 30% of these branches opening in low- and middle-income regions.

Dimon made the following statements about inflation.

Important expectations Dimon's statements about inflation. The CEO admitted that the ongoing inflation (4%) will continue for a while, and therefore high interest rates should worry the banks. Therefore, he added that consumers may face problems with credit growth as they may avoid borrowing at high interest rates. Barnum explained that net interest income was largely a loss of income despite JPM Chase’s strong deposit growth. But in the opposite case, it is known that the Bank has the necessary assets to distribute capital.  

Source: The Motley Fool

 

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