JPMorgan Q3 profit rises on strong trading unit performance

Overview

• Largest U.S. bank JPMorgan Q3 revenue grows 9% yr/yr, beating analyst expectations, per LSEG data

• Net income for Q3 up 12% yr/yr to $14.4 bln

• Company repurchased $8 bln of common stock

Outlook

• Company notes heightened uncertainty due to geopolitical conditions and trade issues

• JPMorgan highlights resilience of U.S. economy despite signs of softening

• Company prepares for a wide range of economic scenarios due to uncertainties

Result Drivers

• NONINTEREST REVENUE - Higher noninterest revenue, particularly from asset management and investment banking fees, contributed to revenue growth

• MARKETS REVENUE - Markets revenue increased 25% due to strong performance in Fixed Income and Equity Markets

• CARD SERVICES & AUTO - Increased revenue from card services and auto contributed to growth in the Consumer & Community Banking segment

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 8 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for JPMorgan Chase & Co is $330.00, about 6.7% above its October 13 closing price of $307.97

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago

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