JPMorgan FICC Revenues Plunge 27%, “Low Volatility” Blamed

Launching Q3 earnings season, moments ago JPM reported third-quarter Net Income of $6.7 billion and EPS of $1.76, beating expectations $1.67 and 18 cents, or 7% higher than a year ago, on “managed” revenue of $26.2 BN, beating consensus expectations of $25.7 BN, up 3% from the $25.5BN in Q3 2016 revenue .

JPM reported average core loans up 7% Y/Y and 2% Q/Q, with net interest income up $1.2Bn Y/Y to $12.5bn, “primarily driven by the net impact of rising rates and loan growth” even as average NIM missed.

Commenting on the results, if not on this morning’s new all-time high in bitcoin, Dimon said “JPMorgan Chase delivered solid results in a competitive environment this quarter with steady core growth across the platform. And for the first time, the Firm led the nation in total U.S. deposits, as consumers and businesses continue to view us as their partner of choice.

The global economy continues to do well and the U.S. consumer remains healthy with solid wage growth. Unfortunately, natural disasters in the U.S. and abroad have impacted many of our customers and we have responded with enormous financial support as well as the expertise and generosity of our employees to help these customers, clients and communities. Building on our success to-date in Detroit, we have announced new initiatives in Chicago and Washington, D.C. to drive inclusive economic growth in those communities. We will be there to do our part. And this is in addition to the $1.7 trillion of credit and capital supplied this year to consumers and small and mid-sized businesses and corporate clients.”

Breaking down the data, Dimon said that “in Consumer & Community Banking, card sales and merchant processing volumes were once again up double digits, while loans and deposits continued to grow strongly. In the Corporate & Investment Bank, we continued to lead our peers in Investment Banking fees, and Treasury Services and Securities Services each generated over $1 billion in revenue. Commercial Banking again delivered outstanding performance with record revenue as our long-term investments in the business are paying off. Our Asset & Wealth Management business delivered strong results with record net income and AUM this quarter.”