JP Morgan tops quarter estimates whilst Morgan Stanley misses the mark
JP Morgan reported a less-than-feared 17 per cent fall in third-quarter profit this afternoon, while Morgan Stanley posts a revenue plunge.
JP Morgan’s adjusted profit was $3.36 per share, above analysts’ average estimate of $2.88, according to Refinitiv data.
JP Morgan chief Jamie Dimon said that consumers in the US were continuing to spend despite fears that rising interest rates would trigger a broader economic slowdown.
“In the U.S., consumers continue to spend with solid balance sheets, job openings are plentiful and businesses remain healthy,” he said in a statement.
However, he did warn of the ongoing pressures on global markets.
“While we are hoping for the best, we always remain vigilant and are prepared for bad outcomes,” Dimon said.
These mixed messages were also reflected in the wider results for the largest US bank, with JP Morgan’s profit falling to $9.74bn, or $3.12 per share, but revenue climbing 10 per cent to $32.72bn.
By contrast, Morgan Stanley’s third-quarter earnings missed analyst expectations, with revenue tanking 55 per cent.
The New York bank said its quarterly profit of $2.63bn, or $1.47 a share, fell 29 per cent from a year earlier, as Wall Street continues to feel the sting of the collapsing IPO market
JP Morgan’s shares climbed two per cent, while Morgan Stanley’s tumbled four per cent.