This week, the markets shifted their attention to the number of
Third Quarter Earnings
JPMorgan was expected to post a jump of 6% in their earnings at $1.67 per share and a 3% revenue growth to $25.39 billion as the bank was projected to continuously post growth and remain one of the biggest banks in the country.
Compared to most analysts forecasts, JPMorgan was able to post earnings of $1.76 per share for the quarter that ended in September while their revenue was able to meet most analyst estimates of $25.3 billion higher than their revenue of $24.7 billion during the same quarter last year.
However, a couple of sectors from the bank’s businesses slumped during the third quarter with their bonds trading revenue down by 27% from the same period last year when numbers were higher due to the U.S. elections as well as the Brexit. JPMorgan’s return on equity for the quarter stood at 11% which is mostly flat from the same period a year ago.
According to the bank, the decline in fixed income trading revenue was due to a considerably lower revenue from all of their products mostly due to low volatility and tighter credit spreads. JPMorgan chief executive Jamie Dimon stated last month that their trading revenue for the third quarter might go down by as much as 20% year over year. Citigroup chief executive also made similar comments regarding Citi’s trading revenue.
Due to the slip in their bonds trading revenue, shares of JPMorgan were down on Thursday. The stock which has traded up by 12.2% this year was down by 0.66% during Thursday’s pre-market trading to $96.20 per share. JPMorgan shares along with other financial stocks are expected to rise further this year as U.S. President Donald Trump continues to push for a corporate tax reform which would boost company revenues. The outlook for another rate hike as the Federal Reserve currently is debating can also boost financial stocks further. The economy of the United States also has been noted recently to be improving and that consumer banking along with other banking activity has grown recently.
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