Forgive the Frozen reference. But for the first time in forever, JPMorgan Chase’s earnings were overshadowed by another bank’s results. Scandal-ridden Wells Fargo, which is also posting its latest results, was the main story in the world of finance Friday.
But there’s no crisis at JPMorgan Chase. The nation’s most valuable bank reported earnings and revenue for the third quarter that easily topped forecasts on Friday, sending the stock higher in early trading.
JPMorgan Chase, which passed Wells Fargo in market value earlier this year, has been a favorite on Wall Street thanks to its solid results.
The bank said Friday that revenue for the quarter came in at $25.5 billion, up 8% from a year ago and ahead of analysts’ consensus estimates of $24 billion.
JPMorgan Chase reported a profit of $6.3 billion, or $1.58 a share.
That was down 6% from a year ago — largely due to a tax benefit it received a year ago — but was well ahead of the $1.39 per share in earnings that Wall Street was expecting.
JPMorgan Chase posted solid gains in all of its key businesses, led by revenue increases of more than 10% in its investment banking and commercial banking divisions.
The bank also did well in its consumer banking division, reporting double digit percentage gains in loans, deposits and credit card volume.
JPMorgan Chase CEO Jamie Dimon seemed pleased, saying the bank has “unwavering commitment to enhancing customer engagement” and that “to remain best-in-class, we continue to invest significant resources in talent development.”
Those comments are jargony. But they could be interpreted as a subtle jab at Wells Fargo, which is in turmoil after the bank was found to have opened up fake accounts for many of its customers. Wells Fargo CEO John Stumpf has stepped down as a result.
Wells Fargo was expected to report a decline in earnings and small increase in revenue for the quarter.
But regardless of whether the numbers are good or bad, the spotlight will be shining on new CEO Tim Sloan. Investors will want to know what he will do to clean house at the bank and repair its damaged reputation.
Two other big banks were reporting earnings Friday too. Analysts are expecting Citigroup to post a decline in revenue and profits. But regional banking giant PNC, like JPMorgan Chase, reported earnings that were better than expected.