JPMorgan delivers record revenue

JPMorgan Chase reported better than expected third-quarter results, sending shares higher ahead of the opening bell.

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JPMJP MORGAN CHASE & CO.130.58-0.04-0.03%

The bank's profit rose 8 percent versus a year ago to $9.1 billion, or $2.68 a share, beating the $2.45 that analysts surveyed by IBES were expecting. Revenue spiked 8 percent to $30.1 billion, topping the $28.5 billion consensus.

"The consumer remains healthy with growth in wages and spending, combined with strong balance sheets and low unemployment levels," CEO Jamie Dimon said in the earnings release. "This is being offset by weakening business sentiment and capital expenditures mostly driven by increasingly complex geopolitical risks, including tensions in global trade."

Revenue at the bank's consumer banking unit rose 7 percent as the opening of branches in new states began to produce results. Credit card sales volume climbed 10 percent, while merchant processing jumped 11 percent. JPMorgan's provision for credit losses was $1.3 billion, up $331 million.

"Our consumer lending businesses benefited from our continued investments and a favorable environment for borrowers, which helped drive healthy volumes in Home Lending and Auto and strong loan growth in Card,” Dimon said.

Fed rate cuts this year have caused worries on Wall Street that bank profit margins will shrink. Dimon said last month that his bank's net interest income would come under pressure. JPMorgan said net interest income rose 2 percent versus a year ago to $14.4 billion as a growing balance sheet helped offset the lower interest rate environment.

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Market revenue surged 14 percent versus a year ago to $5.1 billion as fixed income revenue spiked 25 percent year-over-year to $3.6 billion. Equity markets revenue fell 5 percent year over year to $1.5 billion amid a slump in the bank's derivatives business.