To The Moon

JPMorgan Chase Q3 earnings beat helped by interest income, lower credit costs$JPMorgan Chase(JPM)$ 

JPMorgan Chase (JPM) Q3 earnings topped the average analyst estimate as net interest income rose more than expected and its provision for credit losses was lower than consensus. Both factors will "normalize over time," said Chairman and CEO Jamie Dimon. The results also include a full quarter of results from First Republic, which it acquired in May.

The bank said it expects full-year net interest income of ~$88.5B, and ~$89B excluding Corporate & Investment Bank, compared with the ~$87B guidance it gave in July.

The year's adjusted expense is expected to be ~$84B, excluding the FDIC special assessment related to systemic risk determination, compared with its previous guidance of ~$84.5B.

Card services net charge-off rate is expected to be ~2.50% for the year, vs. its previous outlook of ~2.60%.

Dimon warns that inflation may still persist and that interest rates could continue to rise more. “Currently, U.S. consumers and businesses generally remain healthy, although, consumers are spending down their excess cash buffers. However, persistently tight labor markets as well as extremely high government debt levels with the largest peacetime fiscal deficits ever are increasing the risks that inflation remains elevated and that interest rates rise further from here," he said.