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JPMORGAN CHASE & CO 8-K Report, Regulation FD Disclosure (Oct 11, 2024)

Reports
Regulation FD·Exhibits & Filings
Filing Date
Filed October 11, 2024
Period End
October 11, 2024
In the record · 2016–202610-K1110-Q328-K336

JPM filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 336 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Jul ’22Jul ’22
  2. Leadership change8-K · Jun ’26Jun ’26

01—Abstract

Summary

Summary of the 8-K filed October 11, 2024. Cited figures are marked; the original filing is the authoritative source.

JPMorgan Chase reported 3Q24 net income of $12.9Ba and diluted EPS of $4.37, with managed revenue of $43.3B, expense of $22.6B, and a managed overhead ratio of 52%.

Return on tangible common equity (ROTCE) was 19%. Results declined sequentially: net income fell $5.3Bb and EPS fell $1.75 from 2Q24, mainly because noninterest revenue dropped $8.3B, including a $7.6B decline in Corporate noninterest revenue. Net income was roughly flat year over year, down $0.3B from 3Q23, while ROTCE fell from 22% to 19%.

Net interest income of $23.5Bc was up $0.7B quarter over quarter and rose year over year, reflecting balance sheet mix and securities reinvestment. Capital and liquidity remained strong. The Standardized CET1 ratio was 15.3% and the Advanced CET1 ratio was 15.5%, both up from 14.3% and 14.5% a year earlier.

The Firm SLR was 6.0% and the Firm LCR was 114%. Total assets reached $4.21Td. The Firm paid a common dividend of $3.6B ($1.25 per share) and made $6.0B of net common stock repurchases, for a last-twelve-month net payout of 54%.

Tangible book value per share rose to $96.42 from $82.04 a year earlier. Credit costs were $3.1B, including $2.1B of net charge-offs and a $1.0B reserve build, with the Card Services net charge-off rate at 3.24%. Segment results were mixed.

Consumer & Community Banking net income was $4.0B, down 31% year over year, on higher card net charge-offs and a $876mm reserve build. Commercial & Investment Bank net income was $5.7B, up 13% year over year, with investment banking fees up 29% and equities revenue up 27%.

Asset & Wealth Management net income was $1.4B, down 5% year over year, while AUM reached $3.9T. For full-year 2024, management guided to net interest income of about $92.5B (market dependent), adjusted expense of about $91.5B (market dependent), and a Card Services net charge-off rate of about 3.4%.

02—Key points

Key Highlights

  1. 3Q24 net income of $12.9B and diluted EPS of $4.37, down $5.3B and $1.75 from 2Q24, and roughly flat year over year ($0.3B lower than 3Q23)
  2. Managed revenue of $43.3B, down $7.7B sequentially; net interest income rose to $23.5B while noninterest revenue fell to $19.8B
  3. ROTCE of 19% versus 28% in 2Q24 and 22% in 3Q23; managed overhead ratio of 52% (51% adjusted)
  4. Standardized CET1 ratio of 15.3% and Advanced CET1 ratio of 15.5%; Standardized RWA of $1.78T and total loss-absorbing capacity of $544B
  5. Returned $3.6B in common dividends ($1.25 per share) and $6.0B in net share repurchases; LTM net payout of 54%
  6. Credit costs of $3.1B, including $2.1B of net charge-offs and a $1.0B reserve build; Card Services NCO rate of 3.24%
  7. FY2024 outlook: net interest income of about $92.5B, adjusted expense of about $91.5B, and Card Services NCO rate of about 3.4%, all market dependent where noted

03—Questions

Frequently Asked Questions

  1. Did JPMorgan's earnings decline in the third quarter of 2024?

    Yes, compared with the prior quarter. Net income fell $5.3B to $12.9B and diluted EPS fell $1.75 to $4.37, driven mainly by an $8.3B drop in noninterest revenue. Compared with 3Q23, net income was about flat, down $0.3B.

  2. How strong is JPMorgan's capital position?

    Capital is well above the levels the filing identifies as its basis for capital management. The Standardized CET1 ratio was 15.3% and the Advanced CET1 ratio was 15.5%, both up from about 14.3% and 14.5% a year earlier. The Firm SLR was 6.0% and the Firm LCR was 114%. CET1 capital was $273B. Note that CET1 figures include a remaining $720mm CECL transition benefit.

  3. Which business segments drove performance this quarter?

    The Commercial & Investment Bank was the strongest, with net income of $5.7B (up 13% year over year) on higher investment banking fees and strong equity markets results. Asset & Wealth Management earned $1.4B, with AUM up 23% year over year to $3.9T. Consumer & Community Banking earned $4.0B, down 31% year over year, as card credit costs and expenses rose.

  4. What is the outlook for the rest of 2024?

    Management expects full-year 2024 net interest income of about $92.5B, adjusted expense of about $91.5B, and a Card Services net charge-off rate of about 3.4%. The net interest income and expense targets are market dependent. Based on year-to-date results, the outlook implies fourth-quarter net interest income of about $22.9B and adjusted expense of about $23.0B.

04—Continue

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