JPMorgan profit rises, but results miss forecasts

JPMorgan Chase reported higher third-quarter profit and revenue on Tuesday, but both results fell short of analyst expectations as weaker fixed-income trading and higher expenses offset gains in other businesses. The bank also raised its full-year outlook for net interest income. Net income for the three months ended September 30 was $15.3 billion, up from $14.4 billion a year earlier. Diluted earnings were $5.57 per share, below analyst estimates that ranged from $5.90 to $5.94. Revenue rose 8% to about $50.2 billion, compared with $46.4 billion in the same quarter last year and analyst expectations of roughly $51.2 billion. Markets revenue, which includes trading, increased 15% year over year to $10.3 billion, while investment-banking fees rose 14%. Within trading, however, fixed-income revenue fell 4% from a year earlier and came in below expectations. Equity trading revenue climbed 49% to $4.95 billion, according to the bank’s results coverage. JPMorgan reported net interest income of $27 billion for the quarter. It raised its full-year net interest income outlook to about $106.2 billion, up from roughly $105.5 billion projected in July.