JPMorgan hit by slowdown in investment banking momentum, shares slip
JPM•JPMorgan Chase's third-quarter net income rose to $15.3 billion, or $5.57 per share, but shares fell 3% in premarket trading as a slowdown in dealmaking raised concerns about future growth.
1. Investment banking cools
JPMorgan reported investment banking fees fell 8% from the second quarter, although they rose 14% from a year earlier. CEO Jamie Dimon said fees each rose at a mid-teens rate, helped by strong client activity, which moderated somewhat during the quarter. The bank remained the top earner of investment banking revenue.
2. Trading and lending grow
Revenue at JPMorgan's markets division climbed 15% year over year in the third quarter. Net interest income excluding markets increased 6% to $24.7 billion, while average loans rose 10% year over year. Dimon said strong business investment and ongoing consumer spending continued to fuel the US economy.
