JPMorgan posts rare profit miss as deal-making, bond trading lose momentum — SkimNews
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- JPMorgan Chase reported Q3 EPS of $5.57 versus the $5.85 analysts expected — its first profit miss since Q4 2023, per LSEG data
- Investment banking fees fell 8% sequentially from Q2, even though they rose 14% year-over-year, as the IPO market lost steam after a hot start that included the SpaceX listing
- Markets revenue climbed 15% year-over-year, fueled by a 49% surge in equities, but fixed-income trading revenue declined 4%
- Net interest income (excluding markets) rose 6% to $24.7 billion, with average loans up 10% year-over-year as consumer spending held firm
- CEO Jamie Dimon said investment banking fees grew at a "mid-teens rate" but "activity did moderate somewhat during the quarter"
- JPMorgan forecasts full-year net interest income of roughly $106.2 billion and 2027 NII (ex-markets) of about $107 billion on a preliminary basis
- JPMorgan shares reversed early losses, climbing 0.8% in premarket trading after initially dropping nearly 3% when results were released
Why it matters: This is JPMorgan's first earnings miss since Q4 2023, and the specific weak spots — an 8% sequential drop in IB fees and a 4% fixed-income decline — reveal where Wall Street's deal engine is stalling. The Fed's September rate hike and rising bond yields threaten to push borrowers out of credit markets, making the bank's 2027 NII guidance of ~$107 billion increasingly dependent on whether consumer lending can keep offsetting capital markets softness.
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