JPMorgan Chase reported a solid QQ3 2024 performance highlighted by resilient profitability across its diversified franchise. Total revenue reached $69.67 billion, up 6% year over year, with net income of $12.90 billion and earnings per share of $4.38, delivering ROTCE of approximately 19%. The firm’s strength was underpinned by a robust performance in Corporate & Investment Bank (CIB) and Asset & Wealth Management (AWM), with IB fees up 31% YoY and markets revenue up 8% YoY, and AWM posting record quarterly revenues and long-term inflows. Consumer & Community Banking (CCB) revenue declined modestly as deposit margin compression and lower Banking & Wealth Management deposits weighed on revenue, while Card Services and Auto continued to show growth, driven by higher card NII and revolving balances.
The balance sheet remains exceptionally strong, with a CET1 ratio of 15.3% and a large liquidity cushion (cash and cash equivalents of $434.3B and total cash plus short-term investments of $757.7B). Net common equity repurchases totaled $6.0B for the quarter, underscoring the bank’s capital discipline. Management reaffirmed 2024 guidance targeting NII ex-markets of about $91.5B and total NII of about $92.5B, with fourth-quarter markets NII implying roughly $0.8B of incremental markets NII. The management tone emphasized normalization of NII as central to the outlook, with a belief that the trough could occur in mid-2025 and deposit growth, as well as card revolve, could support a pickup thereafter. In terms of capital allocation, JPMorgan’s leadership stressed a patient approach, citing roughly $30B of excess capital and a readiness to deploy when appropriate, including potential growth investments, private banking, and selective lending opportunities, while remaining mindful of market conditions and regulatory developments.
Overall, the QQ3 2024 results reinforce JPMorgan’s position as a top-tier, diversified financial services franchise with a resilient earnings engine, ample liquidity, and meaningful opportunities to deploy capital to grow the client franchise. Investors should monitor NII trajectory through 2024–2025 as interest-rate dynamics normalize, the pace of deposit repricing, and the potential impact of regulatory changes on capital requirements and funding structure.