In a surprising turn, JPMorgan Chase and Wells Fargo reported their third-quarter earnings today, revealing significant developments amid ongoing geopolitical tensions. JPMorgan earned $12.9 billion, a 2% decline year-over-year, while Wells Fargo reported a profit of $5.1 billion, down 11% from the previous year.
Despite the decline, JPMorgan's adjusted revenues rose by 6% to $43.3 billion, surpassing analyst expectations. The bank also increased its net interest income forecast for 2024 from $91 billion to $92.5 billion, even after the Federal Reserve's recent interest rate cut.
JPMorgan CEO Jamie Dimon expressed concerns about the darkening global outlook, citing the potential economic ramifications of geopolitical conflicts, but noted that inflation is decreasing and the U.S. economy remains resilient.
In contrast, Wells Fargo's net interest income fell by 11%, contributing to a 2% drop in total revenue to $20.4 billion. The bank reduced its provisions for credit losses by 11% to approximately $1.1 billion, indicating a more cautious approach compared to JPMorgan.
Market reactions were positive, with JPMorgan shares rising by 3.3% and Wells Fargo's stock increasing by 5.8% shortly after the announcements.