JPMORGAN CHASE & CO Quarterly Report for Q3 Ended Sep 30, 2017

Summary

JPMorgan Chase & Co. reported strong third-quarter 2017 results, with net income of $6.7 billion, or $1.76 per diluted share, representing a 7% increase year-over-year. Total net revenue grew 3% to $25.3 billion, driven by a 10% increase in net interest income, primarily due to higher interest rates and loan growth. Noninterest expense decreased 1% to $14.3 billion, partly due to the absence of prior-year charges. The firm's capital position remained robust, with a Common Equity Tier 1 (CET1) capital ratio of 12.6%, exceeding regulatory requirements. The bank also continued to grow its tangible book value per share, reaching $54.03, up 5% year-over-year. All business segments contributed positively, with Consumer & Community Banking showing a strong return on equity of 19%, while Corporate & Investment Bank, Commercial Banking, and Asset & Wealth Management also posted solid results and revenue growth in key areas.

Key Highlights

• 1Net income increased by 7% to $6.7 billion, or $1.76 per diluted share, compared to the prior year's third quarter.
• 2Total net revenue rose by 3% to $25.3 billion, driven by a 10% increase in net interest income and a 4% decrease in noninterest revenue, largely due to lower Markets revenue in CIB.
• 3Noninterest expense declined by 1% to $14.3 billion, aided by the absence of significant prior-year charges.
• 4Provision for credit losses increased by 14% to $1.5 billion, reflecting higher net charge-offs and additions to the allowance for credit losses, particularly in the credit card portfolio.
• 5Common Equity Tier 1 (CET1) capital ratio remained strong at 12.6%, indicating a solid capital position.
• 6Tangible book value per share grew by 5% to $54.03, reflecting continued value growth for shareholders.
• 7Consumer & Community Banking (CCB) delivered a strong return on equity of 19% and saw growth in average core loans and deposits.

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