JPMorgan Solid Q3 Driven By FICC Revenue

JPMorgan Chase & Co. JPM reported Q3 results, with EPS ahead of the consensus and the estimate.

Goldman Sachs’ Richard Ramsden maintained a Neutral rating on the company, with a price target of $71.

Related Link: JPMorgan Kicks Off Big Banks, Beats EPS Estimates

The company reported its EPS for Q3 at $1.58, ahead of the consensus and estimate, while core EPS came in at $1.55, marginally ahead of the estimate of $1.54. The annualized ROTCE for the quarter stood at 13 percent, while TBV grew 2 percent quarter on quarter to $51.23.

“The significant beat was driven by better than expected capital markets, partly offset by a reserve build,” Ramsden mentioned.

Adjusting out FICC, JPMorgan Chase’s EPS came in line with the estimate at $1.45, although still beating the consensus expectations.

“JPM reiterated its full-year expense target of $56bn, despite the strong revenue beat, demonstrating continued expense discipline,” the analyst went on to say.

Robust FICC Across The Board

JPMorgan Chase reported its revenue for the quarter at $24.7 billion, slightly ahead of the consensus and estimate, driven by FICC, a marginal NII beat and investment banking.

Capital markets also beat the estimate, with FICC of $4.3 billion, representing 48 percent year on year growth, while equities were slightly worse at $1.4 billion, below the estimate of $1.5 billion.

“There was strong FICC performance across the board, concentrated particularly in rates, credit and securitized products,” Ramsden stated.