JPMorgan Chase & Co. (NYSE:JPM) reported a substantial increase in its Q3 earnings on Friday, with net income rising to $13.15 billion, or $4.33 per share. This performance significantly outpaced both the average analyst estimate and the previous year's earnings per share of $3.12.
The surge in earnings was largely driven by higher interest rates and the addition of $173 billion in loans following the acquisition of First Republic Bank (OTC:FRCB). The Federal Reserve's rate hikes played a pivotal role in this uptick, pushing the bank's net interest income (NII) up by 30% year-on-year to reach $22.9 billion by the end of September.
Alongside this, JPMorgan's total net revenue was reported at $39.87 billion, exceeding Wall Street's forecast of $39.57 billion. Managed net revenue showed a 21% year-on-year rise to $40.69 billion. The bank also registered a 12% rise in non-interest revenue to $17.8 billion.
The bank's provision for credit losses decreased to $1.38 billion from last year's $1.54 billion, reflecting improved credit conditions. Additionally, a 30% increase in net interest income to $12.9 billion further contributed to JPMorgan's strong third-quarter performance.
This robust financial performance underscores the resilience of JPMorgan Chase & Co., as it navigates an environment marked by fluctuating interest rates and economic uncertainty.
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