“This could be the most dangerous period the world has seen in decades.” She said it bluntly CEO of JP Morgan, Jamie Dimon, during the press conference in which he commented on the third quarter results which according to the New Yorker "were solid", with double-digit profits and rising margins.
In fact, on Wall Street, the quarterly reporting season has begun again and today has come into full swing with the accounts of four banking giants: in addition to JP Morgan (+3,1% at the opening on Wall Street), in fact, they also presented the results Citigroup (+ 2,97%), BlackRock (-1,5%) And Wells Fargo (+ 3,5%).
JP Morgan “Wars in Israel and Ukraine could have major impacts on energy, food and trade”
“Currently – explained Dimon – US consumers and businesses remain in good health. However, persistent labor market tension and extremely high levels of public debt, with the largest fiscal deficit ever recorded in peacetime, they increase the risk that inflation remains high and that interest rates rise further."
The CEO of JP Morgan said: “We don't yet know the long-term consequences of quantitative tightening” and “the war in Ukraine, in addition to last week's attacks on Israel, could have far-reaching impacts on energy and food markets, global trade and geopolitical relations.” This, Dimon continued, “could be the most dangerous period the world has seen in decades. While we hope for the best, we prepare for any scenario, so we can always deliver results for clients, regardless of the context they find themselves in.”
As for JPMorgan, Dimon pointed out that “all lines of business have seen a continued momentum in the quarter, demonstrating the strength of years of investments and the value of our principles of coherence and strength."
JP Morgan's quarterly
JP Morgan was the first of the major American banks to publish its third quarter accounts, beating analysts on profit and revenue, both of which were on the rise thanks to rising interest rates and favorable credit conditions.
In detail, in the three months ended September 30, the bank achieved a Net income equal to $13,151 billion, $4,33 per share, up 35% from $9,737 billion, $3,12 per share, in the same period last year.
I reported revenues they rose by 22% to 39,874 billion, while managed ones by 21% to 40,686 billion.
Il cost of credit stood at 1,4 billion, average loans increased by 17% and average deposits dropped by 4%.
In the quarter, JPMorgan generated a interest income higher than expected (+30% to 22,73 billion dollars, marking the fourth consecutive record). Non-interest income, which represents the fees the bank collects from all its activities, rose 13% to 17,15 billion.
The bank announced that other loans went bad during the quarter, but they were provisions reduced for potential future credit-related losses (1,384 billion, -10%, demonstrating that the institution does not see growing problems in the future. The free book value was equal to $100,30 per share (+15%) and the Tier 1 capital ratio it stood at 14,3%. The return on capital was 18%, compared to 20% in the previous three months and 15% in the same period last year.
Citigroup's quarterly
Benefiting from the good performance of all activities, and in particular those linked to Treasury, trade and fixed income, Citigroup closed the third quarter with a Net income of $3,54 billion, $1,63 per share, up 2% from the same period last year. THE total revenue they grew 9% to $20,13 billion. Both data exceeded consensus.
“Despite the headwinds, our five main interconnected business areas recorded revenue growth. Services, the fastest-growing business, recorded +13% with Treasury and Trade Solutions reporting their best quarter in a decade,” the company said. CEO Jane Fraser, explaining that the markets area recorded growth of 10%, thanks to the solidity of fixed income. Citigroup's number one also underlined that "the Cet1 coefficient rose to 13,5%, exceeding the regulatory minimum by 14 billion dollars, after returning 1,5 billion to shareholders through dividends and share buybacks. The disciplined attitude on the growth of operational deposits has allowed us to maintain a stable base”.
In the meantime, the reorganization wanted Fraser: “Last month we announced changes that align our organizational structure with the strategy that has been defined and change the management of the bank. Once completed, we will have a simpler company that can operate faster, serve customers better and create value for our shareholders,” she said.
Going back to the numbers, the cost of credit stood at 1,8 billion, compared to 1,4 billion in the same period last year, while the provisions against future credit-related losses stood at 17,6 billion (+1,3 billion), with a ratio of reserves/financed loans of 2,68%, compared to 2,54% at the end of 2022. At the end of the period, loans totals were equal to 666 billion (+3%) and deposits equal to 1.300 billion (-3%).
BlackRock's quarterly
In the three months from July to September, the to evaluate of BlackRock rose by 14% to 1,604 billion dollars, 10,66 dollars per share. L'adjusted earnings per share it stood at $10,91.
Up too the revenues, which rose by 5% to 4,522 billion, thanks to the increase in organic growth, the impact of the market movements of the last twelve months on theMedium increase and increased revenues from technological services.
In the period, operating profit it increased by 7% to 1,637 billion and the operating margin went from 35,4% to 36,2%.
BlackRock reported $3 billion net inflows quarterly totals, reflecting $49 billion in net outflows from lower-fee institutional equity strategies, including $19 billion from a single international client.
“For the first time in nearly two decades, clients are achieving real cash returns and can wait for greater political and market certainty before initiating a re-risking strategy. This dynamic weighed on the sector's and BlackRock's flows in the third quarter,” he said CEO Laurence Fink.
Wells Fargo's quarterly
In the third quarter the Wells Fargo earnings they stood at $5,77 billion, up 61% compared to the same quarter last year. The San Francisco-based financial institution faced a $2 billion charge last year related to regulatory issues. Now Wells Fargo earned $1,48 per share, more than analysts expected. THE revenues they increased by 7% to 20,86 billion dollars, also above expectations.
