JPMorgan Chase shares gained 5% after the bank reported third-quarter earnings that had analysts cheering, particularly from net interest income, which was much higher than expected. The bank recorded a surprise increase of 3% in NII to $23.4 billion across fears that low interest rates will squeeze its margins. This performance helped boost the stock price of JPMorgan, up 25% this year.
The bank’s investment banking business remained on a growth trajectory, with fees increasing by 31%, above consensus. This improvement in NII and success in its investment banking business only added to the positive momentum its shares had been picking up. Despite those financial results, though, the overall economic environment continued to be somewhat tight, according to CEO Jamie Dimon, citing risks from fiscal deficits and geopolitical developments.
The bank revised its full-year NII outlook to $92.5 billion, significantly higher than previously estimated, which is good news going forward despite the rate cuts pledged by the Federal Reserve.
