JPMorgan CEO Jamie Dimon warned conflicts in Ukraine and the Middle East are creating “the most dangerous time the world has seen in decades,” as interest rate increases gave the bank an earning boost in the third quarter of the year.
JPMorgan, Citigroup and Wells Fargo all reported better than expected third quarters on Friday.
JPMorgan reported revenue of $39.87 billion, compared to $39.63 billion forecasted by analysts surveyed by FactSet, and net income of $13.2 billion, or $4.33 per share.
The bank’s momentum in the third quarter is the result of “years of investment” and consistency in clients, Dimon said, but still warning global risks as well as high government debt levels increase the risk of “elevated” inflation and booming interest rates.
Dimon said the ongoing conflicts “may have far-reaching impacts on energy, food markets, global trade and geopolitical relationships.”
It’s not just JPMorgan, many of the larger banks posted positive quarter earnings Friday, despite the economic conditions. Wells Fargo revenue surpassed expectations of $20.11 billion in the third quarter, reaching $20.86 billion. Citigroup also saw higher than expected third quarter postings with revenue reaching $20.14 billion surpassing the $19.31 billion the bank was expected to earn.
JPMorgan’s size—it’s the largest bank in the country—and reputation have helped its strong standing throughout recent years of record inflation and rising interest rates. The bank has had multiple quarters in a row of increased income. It made $22.73 billion in net interest income—the difference between what the bank earns on loans and pays out on deposits—up some 30% from last year and an increase of 4% from the second quarter of the year.
Fourth quarter earnings are likely to paint a clearer picture of what the recent conflict in the Middle East could mean for the domestic economic health.
Big Banks Beat On Earnings As Higher Interest Payments Roll In (Forbes)