JP Morgan has published its financial results for the third quarter of 2019, with the firm managing to record a solid performance during the period, particularly in terms of profit and revenue.
In Q3 of 2019, JP Morgan’s consumer banking operations helped the company mitigate the impact of lower interest rates. As a result, the multinational company reported that profit for the quarter came in at $9.1 billion, or $2.68 a share, which represents an increase of eight percent year-on-year.
The firm’s profit figure came in above analysts’ expectations, surveyed by Refinitiv, which provided an estimate of $2.45 a share. During the quarter, JP Morgan also achieved record revenue of $30.1 billion.
On a yearly comparison, revenue has achieved a growth of eight percent. It is also stronger by two percent than the second quarter of 2019. The revenue also surpassed wall street estimates of $28.5 billion.
Commenting on the financial results, Jamie Dimon, Chairman and CEO, said: “JPMorgan Chase delivered record revenue this quarter, demonstrating broad-based strength and the resilience of our business model despite a more challenging interest rate backdrop.”
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JP Morgan markets revenue increased by 14%
Taking a look at the bank’s trading operations, market revenue came in at $5.1 billion, an increase of 14 percent year-on-year. Contributing to this was the fixed income markets, with a revenue of $3.6 billion.
This figure is higher on an annual measurement by 25 percent, due to considerably more favorable market conditions. Furthermore, the current quarter results were driven by strong client activity across its products, the report said.
Equity markets revenue was $1.5 billion in the third quarter of 2019. When measuring this against the same period of the previous year, revenue has fallen by five percent. This decline was driven by lower revenues in derivatives, which were partially offset by Cash Equities.
“We had record third quarter IB fees with particularly strong performance in DCM and ECM, and year-to-date we maintained our #1 global ranking with share gains across products and regions,” Dimon added.
“Markets performance was solid, reflecting improved client activity – particularly in Fixed Income… And in Asset & Wealth Management, both AUM and client assets were a record helped by strong net inflows into long-term and liquidity products.”