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Adjusted revenue in the three-month period came in at $40.7 billion, beating Bloomberg consensus estimates of $39.9B. The figure was down slightly from $42.0B in the second quarter, but surged by 21% year-on-year.
The top-line number pushed net income up to $13.2B, also above analysts’ projections of $11.9B.
“[W]e acknowledge that these results benefit from our over-earning on both net interest income and below normal credit costs, both of which will normalize over time,” Chief Executive Officer Jamie Dimon said in a statement on Friday.
Net interest income — the difference between what a bank pays on deposits and what it earns from assets like loans — registered $22.9B. It was an increase of 30% annually, driven by elevated rates and higher revolving balances in its card services unit. JPMorgan has been able to charge more for its loans during the Federal Reserve’s months-long campaign of rate hikes, but has not offered significantly more in returns to savers for deposits.
Meanwhile, provisions for credit losses fell by 10% to $1.4B, reflecting net charge-offs — or loans that have been marked as unrecoverable — of $1.5B and a net reserve release of $113 million. Analysts had anticipated provisions of $2.5B.
