On Oct. 13, JPMorgan Chase (which goes by the ticker symbol "JPM" on the NYSE) divulged all the fiscal details for their Q3 2020 earnings call. As it turns out, the numbers were better than expected.
When did JPMorgan report their earnings?
JPMorgan reported their earnings on Tuesday morning in pre-market hours. This week is a big one for big bank earnings reports, with Citigroup also sharing their earnings on Tuesday.
Third-quarter earnings season begins this week, with several large banks reporting. Citigroup and JPMorgan Chase go first on Tuesday, followed by Bank of America, Goldman Sachs Group, and Wells Fargo on Wednesday. Morgan Stanley reports on Thursday.— Azaria 🇧🇿 (@azaria_trades) October 12, 2020
JPM earnings report highlights
There was no shortage of highlights for the JPM earnings report. Expected numbers included $28.39 billion in adjusted revenue and an adjusted earnings per share (EPS) of $2.26.
For JPM, the reality was even brighter, with $29.94 billion in adjusted revenue and an adjusted EPS of $2.92.
These numbers aren't the end-all-be-all. The bank raked in $9.4 billion in net income and maintained a $34 billion credit reserve
JPM previously suspended share buybacks as a result of the COVID-19 pandemic. In the Q3 2020 earnings report, they disclosed that this suspension is ongoing through at least the end of the fourth quarter.
It looks like corporate and investment banking was JPM's strong suit this quarter. Their markets revenue increased by 30 percent, with equity trading increasing an impressive 32 percent. Revenue from fixed-income trading bolstered 29 percent. Meanwhile, investment banking proved helpful for JPM, with a 12 percent revenue boost (keep in mind that JPMorgan increased fees by 9 percent, so that likely had something to do with it).
In a time of economic uncertainty, people are saving more. JPM saw the effects of this public tendency firsthand, with deposits rising 28 percent and investment assets increasing 11 percent. Loans dipped by 7 percent and credit card sales shrunk by 8 percent.
Understandably, JPM saw more mobile customers in Q3 2020. Social distancing is the likeliest culprit for this 10 percent increase.
What is JPMorgan stock price today?
At market open on Tuesday, Oct. 13, JPM shares were at $102.93, up more than 0.4 percent from the stock's previous close.
JPM stock has been on a bull run since market open on Wednesday, Oct. 7 when the company opened at $98.00 per share.
A word on the JPM dividend
JPM's current dividend yield is 3.51 percent, which equates to an annual dividend of about $3.60 per share. Their PE ratio is 13.8 percent. JPM typically pays out dividends quarterly, and they have been doing so consecutively since 1990.
A forecast for JPM stock
It's hard to say how banks will fare in the long run of the pandemic, but as of right now, they seem to be managing. JPMorgan beat expectations for Q3 2020, but if they maintain buyback suspensions for too long or experience hardship from lowered interest rates, their fate could change.
Their precious metal trading scandal that left them $920 million short has angered a lot of average Janes and Joes. That, too, could prove problematic in the long term. If you're interested in investing in JPM for a swing trade, get in early.
You can find out more about JPMorgan investor relations on their website.