JPMorganChase (JPM) Q3 2024 earnings summary

Executive summary

• Q3 2024 net income was $12.9B ($4.37 per share), with ROE at 16% and ROTCE at 19%.

• Managed revenue reached $43.3B, up 6% year-over-year, with strong CIB (investment banking fees up 31%, markets revenue up 8%) and AWM (AUM up 23%, record net inflows) performance.

• Average loans and deposits both increased 1% year-over-year and sequentially, with average loans at $1.3T and deposits at $2.4T.

• CCB ranked #1 in U.S. retail deposits for the fourth year; card loans up 11%, 2.5M new accounts.

• $6B in net common share repurchases and $3.6B in common dividends distributed.

Financial highlights

• Revenue rose 6% year-over-year to $43.3B; net interest income up 3% to $23.5B; noninterest revenue up 11% to $19.8B.

• Expenses increased 4% year-over-year to $22.6B, mainly due to higher compensation.

• Credit costs were $3.1B, with net charge-offs of $2.1B, up $590M year-over-year, mainly in card.

• Book value per share $115.15 (up 15%), tangible book value per share $96.42 (up 18%).

• Total assets at period end were $4.21T, up from $3.90T in 3Q23.

Outlook and guidance

• 2024 net interest income expected at ~$92.5B; NII ex Markets at ~$91.5B.

• Adjusted expense outlook for 2024 is ~$91.5B.

• 2024 card net charge-off rate expected at ~3.4%.

• Sequential NII declines expected into mid-2025, with a trough anticipated before a return to growth.

• Integration of First Republic Bank expected to be substantially complete by end of 2024.