Key Takeaways
- Net involvement borderline was somewhat beneath expert expectations, down 11.0% connected a year-over-year ground and level sequentially.
- Net involvement borderline is simply a measurement of the quality betwixt the involvement banks gain connected their assets and the involvement they wage retired to depositors and different creditors.
- JPMorgan importantly exceeded expert predictions connected EPS and modestly bushed predictions connected revenue.
| Metric | Beat/Miss/Match | Reported Value | Analysts' Predictions |
| Earnings Per Share ($) | Beat | 3.74 | 2.98 |
| Revenue ($B) | Beat | 29.6 | 29.4 |
| Net Interest Margin | Miss | 1.62% | 1.64% |
Source: Predictions based connected analysts' statement from Visible Alpha
JPMorgan Chase (JPM) Financial Results: Analysis
JPMorgan Chase & Co. (JPM) reported earnings for Q3 FY 2021 connected Oct. 13, 2021, earlier marketplace open. The institution solidly bushed expert expectations. Earnings per share (EPS) climbed by 28.1% twelvemonth implicit twelvemonth (YOY), a importantly faster gait of maturation than the 2.0% analysts predicted. JPMorgan's quarterly gross besides came successful supra forecasts but was up lone 1.3% YOY. On the different hand, JPMorgan's nett involvement borderline came successful somewhat beneath expert expectations, falling by 11.0% YOY and remaining level connected a sequential basis.
JPMorgan's Net Interest Margin
A cardinal metric for JPMorgan is net involvement margin, a measurement of the quality betwixt the involvement banks gain connected their assets and the involvement they wage retired to depositors and different creditors. In highly low involvement complaint environments, nett involvement margins get squeezed arsenic banks little rates charged to borrowers successful bid to stay competitory but are reluctant to propulsion rates they wage to creditors beneath the little zero bound. JPMorgan refers to this metric arsenic "net output connected interest-earning assets."
Analysts predicted a diminution YOY successful JPMorgan's nett involvement margin, which has dropped each 4th since Q1 FY 2019. The institution reported nett involvement borderline that fell by a somewhat wider borderline than predicted YOY, coming up abbreviated of expert predictions. What's more, nett involvement borderline failed to amended connected a sequential ground arsenic predicted, alternatively remaining flat.
JPMorgan's Stock Performance and Outlook
Shares of JPMorgan banal person importantly outperformed the broader marketplace successful the past year, providing one-year trailing total returns of 65.5% arsenic compared with 23.1% for the S&P 500. Shares climbed by arsenic overmuch arsenic 1.1% successful extended hours trading pursuing the net release.
The institution did not supply immoderate guardant guidance successful its net release.
Next Earnings Report
JPMorgan Chase's adjacent net study (for Q4 FY 2021) is estimated to beryllium released connected Jan. 13, 2022.
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