JPMorgan Chase & Co. has reported a net income of $12.9 billion for the third quarter of 2024, which translates to $4.37 per share. The return on equity (ROE) stands at 16%, while the return on tangible common equity (ROTCE) is at 19%. The firm has also maintained strong capital ratios, with a common equity tier 1 capital ratio of 15.3% and an advanced ratio of 15.5%.
In terms of revenue, JPMorgan Chase reported $42.7 billion, with managed revenue slightly higher at $43.3 billion. The firm's expenses amounted to $22.6 billion, resulting in a reported overhead ratio of 53% and a managed overhead ratio of 52%.
Credit costs for the quarter totaled $3.1 billion, including $2.1 billion of net charge-offs and a $1.0 billion net reserve build. Average loans saw a 1% increase year-over-year and quarter-over-quarter, while average deposits also experienced a 1% increase year-over-year and quarter-over-quarter.
In the Consumer & Community Banking (CCB) segment, the return on equity (ROE) was 29%. Average deposits, however, saw an 8% decrease year-over-year and a 2% decrease quarter-over-quarter. On the other hand, client investment assets in this segment increased by 21%.
The Corporate & Investment Bank (CIB) segment reported an ROE of 17%. Investment banking fees saw a significant 31% year-over-year increase, although they were down 4% quarter-over-quarter. The firm secured the top ranking for global investment banking fees, capturing a 9.1% wallet share year-to-date. Markets revenue was up 8%, with fixed income markets remaining flat and equity markets experiencing a 27% increase.
In Asset & Wealth Management (AWM), the return on equity (ROE) stood at 34%. Assets under management (AUM) reached $3.9 trillion, marking a substantial 23% increase. Additionally, average loans and deposits witnessed growth, with loans up 2% year-over-year and quarter-over-quarter, and deposits up 17% year-over-year and 4% quarter-over-quarter, including the allocation of first republic deposits to AWM in the previous quarter.
Jamie Dimon, Chairman and CEO of JPMorgan Chase, expressed satisfaction with the firm's performance, highlighting the strong underlying business and financial results for the quarter. He specifically mentioned the growth in investment banking fees, resilient markets revenue, and robust acquisition of accounts in the CCB segment. Additionally, in AWM, asset management fees rose, and there were record long-term net inflows.
In terms of capital distributions, JPMorgan Chase declared a common dividend of $3.6 billion ($1.25 per share) and executed $6.0 billion of common stock net repurchases. The net payout over the last twelve months (LTM) amounted to 54%.
The firm also emphasized its support for consumers, businesses, and communities, having raised over $2 trillion of credit and capital year-to-date. This includes significant credit extensions for consumers, U.S. small businesses, corporations, non-U.S. government entities, and nonprofit and U.S. government entities.
JPMorgan Chase maintained a strong balance sheet, with total loss-absorbing capacity of $544 billion, coupled with cash and marketable securities of $1.5 trillion, while the riskiest assets, namely loans, totaled $1.3 trillion.
The press release also mentioned that the geopolitical situation, along with prevailing economic uncertainties, underscores the importance of being prepared for any environment.
Following these announcements, the company's shares moved 4.5%, and are now trading at a price of $222.43. For the full picture, make sure to review JPMorgan Chase &'s 8-K report.
