JP Morgan confirms dominance as profits rise 35%

JPMorgan Chase’s ( JPM ) profits rose in the third quarter, reinforcing the dominance of the industry’s largest bank despite headwinds the sector has faced this year.

The New York company reported revenue of $13.2 billion, up 35% from the same period a year ago. Its revenue grew 21% to $40.7 billion.

Its net income and earnings beat Wall Street expectations.

CEO Jamie Dimon said in a release that U.S. consumers and businesses “remain generally healthy,” but there are several economic risks, including higher inflation and the possibility that interest rates will continue to rise.

The wars in Ukraine and Israel will also affect energy, food markets, global trade and geopolitical relations.

“This may be the most dangerous time the world has seen in decades,” he said.

JP Morgan Chase CEO Jamie Dimon. (Photo by True Anchorer/Getty Images)

The decision kicks off a closely watched earnings season as banks of all sizes try to show how they are navigating a prolonged period of high interest rates that has been one of the most challenging for the industry since the 2008 financial crisis.

JPMorgan demonstrated its dominance during the spring chaos by winning a government-run bid to buy First Republic’s wholesale operations after regulators seized the San Francisco lender.

First Republic was one of three major regional banks to fail, along with Silicon Valley Bank and Signature Bank. Their seizures caused a panic in the banking system and drove depositors out of many small banks.

The focus of many investors in the coming weeks will be what banks say about a key measure of profitability called net interest income, which measures the difference between what banks earn on their loans and what they pay out on deposits.

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JP Morgan’s net interest income of $22.9 billion beat expectations. This was up 5% from last quarter and 30% from the same period a year ago. Excluding the acquisition of First Republic, this number increased by 21%.

This is a breaking story. More updates to come.

David Hollerith is a senior correspondent for Yahoo Finance covering banking and crypto.

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