JPMorgan profit falls short of analyst estimates as Jamie Dimon warns economic forces ‘changing beneath the surface’

JPMorgan Chase (JPM) reported another quarter of rising profits on Tuesday, even as revenues at some of its biggest Wall Street firms fell after a remarkable second quarter.

The nation’s largest bank said its profits rose 6 percent from last year’s third quarter to $15.3 billion, or $5.57 per share, below the $5.90 per share analysts expected. Net revenue increased 8% to $50.2 billion from $46.4 billion in the third quarter of last year.

The bank also said it suffered $658 million in securities losses amid a deepening bond rout during the quarter. Excluding these losses, the bank earned $5.75 per share.

Jamie Dimon, CEO of JPMorgan Chase, warned that “large budget deficits, persistent inflation, high asset prices, rising interest rates and geopolitical conditions continue to change beneath the surface” despite the strength of the U.S. economy, fueled by strong business investment and a continued spending consumer.

“These forces may be manageable, but we remain prepared to face a wide range of consequences,” Dimon said.

JPMorgan shares rose slightly in premarket trading after initially falling 3%.

JPMorgan’s results open a somewhat tricky earnings season for the nation’s biggest banks, where analysts expect divergences in revenue growth after a stellar second quarter.

JPMorgan’s trading revenue rose 15% to $10.3 billion from last year, slightly below analysts’ expectations. Trading fees increased by 14%. However, revenue from these two main Wall Street divisions declined from the previous quarter.

The bank’s core loan revenue and net interest income rose 13% to $27 billion.

The bank also raised its full-year forecast for net interest income by $1 billion to $97.5 billion, after excluding revenue from its markets business, while sharing its 2027 forecast that the same figure would rise to $107 billion.

David Hollerith covers a range of developments across the financial industry, from Wall Street to banking and asset management to crypto and fintech. Email him at david.hollerith@yahoofinance.com. Follow him on X at @DsHollers.

Click here for in-depth analysis of the latest stock market news and events that move stock prices.

Read the latest financial and business news from Yahoo Finance