JPMorgan posts rare profit miss as dealmaking, bond trading lose momentum
JPM•JPMorgan reported third-quarter profit of $5.57 per share, below analysts’ average estimate of $5.85 and its first profit miss in nearly three years. Investment banking fees fell 8% from the prior quarter, while the bank forecast full-year net interest income of about $106.2 billion, market dependent.
1. Profit misses estimates
JPMorgan reported profit of $5.57 per share for the three months ended September 30, below analysts’ average estimate of $5.85. It was the bank’s first profit miss since the fourth quarter of 2023. Investment banking fees fell 8% from the second quarter, though they rose 14% from a year earlier.
2. Trading results diverge
Revenue at the markets division rose 15% from a year earlier, with equity markets revenue up 49% and fixed-income trading revenue down 4%. Investment banking and trading grew at the lower end of the bank’s estimates. CEO Jamie Dimon said investment banking fees each rose at a mid-teens rate, helped by strong client activity that moderated somewhat during the quarter.
3. Income outlook
Net interest income excluding markets increased 6% to $24.7 billion, and average loans rose 10% year over year. JPMorgan expects full-year interest income of roughly $106.2 billion, market dependent, and $97.2 billion excluding markets. It preliminarily forecast about $107 billion in net interest income excluding markets for 2027.
