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JP Morgan Chase shares seen higher, after better-than-expected Q3 earnings

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JP Morgan chase shares are higher pre-market Friday, as the largest US bank by assets, reported better than expected earnings in the third quarter. JP Morgan Chase said weak bond trading activity was offset by higher interest rates a growing loan book.

JP Morgan Chase shares ended the US Thursday trading session 0.11% higher at $108.13. The stock is currently over 1.5% higher ahead of the US Friday market open.

JP Morgan’s Q3 earnings details

JP Morgan Chase said Friday, that revenues in the third quarter totalled $27.8 billion from a year earlier, beating analysts’ expectations. The better-than-expected result came as its retail banking unit results more than offset weakness in its bond trading activities.

Its average core loans grew 6%, while client investment assets increased 14% in Q3 from a year earlier, the business said. In addition, its credit card sales volumes rose 12%, while it’s merchant processing volumes increased 14%.

The US bank also reported a 33% gain in EPS to $2.34.

“JPMorgan Chase delivered strong results this quarter with top-line growth in each of our businesses, demonstrating the power of our platform,” said JP Morgan Chase Chairman and CEO, Jamie Dimon.

“In Consumer & Community Banking we attracted record net new money this quarter, driving client investment assets up 14%, and we saw continued double-digit growth in card sales and merchant processing volume,” Dimon added.

JP Morgan warns on geopolitics

Dimon did note, however, that there would likely be future headwinds amid ongoing geopolitical issues – without naming, but certainly alluding to, the US-China trade dispute. However, he also shared his pleasure at President Trump tax cuts and deregulatory plans.

“The US and the global economy continue to show strength, despite increasing economic and geopolitical uncertainties, which at some point in the future may have negative effects on the economy,” Dimon said.

“We are extremely excited to be expanding again, as smart regulatory policy and a competitive corporate tax system help us to deliver on our commitment to invest in our customers and communities,” the JP Morgan Chase CEO added.

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