JPMORGAN CHASE & CO Quarterly Report for Q3 Ended Sep 30, 2021

Summary

JPMorgan Chase & Co. reported robust financial results for the third quarter of 2021, demonstrating strong profitability and a healthy balance sheet. Net income surged by 24% year-over-year to $11.7 billion, or $3.74 per diluted share, driven by a significant reduction in the provision for credit losses and a one-time tax benefit. Total net revenue saw a modest 1% increase to $29.6 billion, supported by strong performance in Investment Banking fees within the Corporate & Investment Bank (CIB) segment and higher asset management fees in Asset & Wealth Management (AWM). The firm continued to benefit from substantial deposit inflows, up 19% year-over-year, reflecting the ongoing impact of government actions related to the COVID-19 pandemic. Capital ratios remained strong, with a Common Equity Tier 1 (CET1) capital ratio of 12.9%, well above regulatory requirements. The firm also continued to return capital to shareholders through dividends and share repurchases, highlighting a focus on shareholder value while maintaining a strong financial position.

Key Highlights

• 1Net income increased by 24% year-over-year to $11.7 billion, or $3.74 per diluted share, on total net revenue of $29.6 billion.
• 2Provision for credit losses was a net benefit of $1.5 billion, driven by a $2.1 billion reduction in the allowance for credit losses due to an improved macroeconomic outlook.
• 3Investment Banking fees increased by 50% year-over-year, driven by higher advisory fees from increased M&A activity and higher equity underwriting fees from a strong IPO market.
• 4Asset management, administration and commissions revenue increased by 18%, driven by higher fees in AWM due to net inflows and higher market levels.
• 5Deposits grew 12% year-over-year to $2.4 trillion, reflecting significant inflows across all lines of business, largely driven by government actions in response to the COVID-19 pandemic.
• 6CET1 capital ratio remained strong at 12.9%, indicating robust capital adequacy.
• 7The firm returned $5.2 billion to shareholders through share repurchases and increased its quarterly common stock dividend by 11% to $1.00 per share.

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