JPMorgan kicked off earnings season and posted stronger-than-expected third quarter earnings Tuesday as the bank set aside a much lower amount to cover ad loans amid an improving domestic economy.
JPMorgan CEO Jamie Dimon also said the bank could resume its share buybacks in the first quarter of next year, depending on changes to the Federal Reserve's cap on shareholder returns, which was extended until the end of 2020 earlier this spring.
JPMorgan said earnings for the three months ending in September were pegged at $9.4 billion, or $2.92 per share, up 9% from the same period last year and well ahead of the Street consensus forecast of $2.22 per share. Group revenues, JPMorgan said, slipped 0.66% to $29.9 billion, again topping analysts' forecasts of a $28.3 billion tally.
JPMorgan said its credit loss provision for the quarter rose by $611 million, a much lower figure than the front-loaded $10.5 billion booked over the three months ending in June and the market expectation of around $1.8 billion to as high as $6 billion. Group expenses edged higher from last year to $16.9 billion, the bank said.
“JPMorgan Chase earned $9.4 billion of net income on nearly $30 billion of revenue and we maintained our credit reserves at $34 billion given significant economic uncertainty and a broad range of potential outcomes," Dimon said. "We further strengthened our capital and liquidity position, increasing CET1 capital to $198 billion (13.0% CET1 ratio, up 60 basis points after paying the dividend) and liquidity sources to $1.3 trillion."