JPMorgan Ups Guidance Despite Profit Decline

JPMorgan Chase reported a slight decline in third-quarter profits, attributing the fall to increased provisions for potential loan defaults and credit risks, which rose to $3.1 billion—an increase of 125% from the previous year. Despite this, the bank exceeded Wall Street expectations due to strong performance in its investment banking operations, with net interest income and equity trader revenues surpassing forecasts. JPMorgan also raised its annual net interest income guidance by $500 million. CEO Jamie Dimon highlighted the resilience of the US economy, although he expressed concerns over geopolitical tensions and fiscal challenges. The bank's stock rose over 1% in pre-market trading following the earnings announcement. These results mark the beginning of a challenging earnings season for banks as they navigate potential interest rate cuts by the Federal Reserve.