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(Sharecast News) - JPMorgan Chase on Tuesday reported third-quarter earnings and revenue below Wall Street expectations, despite higher profits driven by growth in lending and investment banking.
The bank posted earnings per share of $5.57 for the three months to September, below consensus forecasts of $5.90, while managed revenue of $50.91bn also missed expectations of $51.22bn.
Net income rose 6% year-on-year to $15.3bn, with earnings per share increasing from $5.07 a year earlier. Excluding $658m of investment securities losses, profits totalled $15.8bn, equivalent to $5.75 per share.
Revenue increased 8% from a year earlier, supported by a 13% rise in net interest income to $27.1bn, while average loans and deposits grew 10% and 8%, respectively.
The commercial and investment banking division reported a 14% rise in revenue to $22.7bn, with investment banking fees up 14% and markets revenue rising 15%.
However, fixed-income trading revenue fell 4%, offsetting a 49% surge in equities trading revenue. Investment banking fees also declined 8% compared with the second quarter.
Consumer and community banking revenue grew 9% to $21.2bn, while asset and wealth management revenue increased 14%.
The bank set aside $2.7bn for credit losses, down from $3.4bn a year earlier, while operating expenses climbed 12% to $27.3bn.
Chief executive Jamie Dimon acknowledged that while each line of business "performed well", investment banking and markets activity had moderated somewhat during the quarter.
Commenting on the economic outlook, Dimon said the US economy continued to benefit from strong business investment and consumer spending, but warned that "large fiscal deficits, sticky inflation, elevated asset prices, rising interest rates and geopolitical conditions continue to shift under the surface".
"These forces may be manageable, but we remain prepared for a wide range of outcomes," he added.
Futures had initially fallen in pre-market trading on Wall Street but were up around 1.0% at $337.52 by 1400 BST.