Analyst Note| Eric Compton, CFA |
Wide-moat JPMorgan reported better-than-expected third-quarter earnings, with normalized EPS of $3.09 compared with S&P Market Intelligence consensus of $2.24. Revenue also beat consensus. JPMorgan again showed why it is one of the premier U.S. banking franchises, as earnings continued to hold up remarkably well, even against a challenging macro backdrop. The adjusted return on tangible common equity was 19%. Net interest income came in roughly as expected, at $13 billion, while investment banking, trading, and mortgage fees all delivered strong growth in the quarter. The continued strength of the I-banking and trading operations has been impressive.