JPMorgan Chase
Q3 2022 Earnings Call
Oct 14, 2022, 8:30 a.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Good morning, ladies and gentlemen. Welcome to JPMorgan Chase's third quarter 2022 earnings call. This call is being recorded. [Operator instructions] At this time, I would like to turn the call over to JPMorgan Chase's chairman and CEO, Jamie Dimon; and Chief Financial Officer Jeremy Barnum.
Mr. Barnum, please go ahead.
Jeremy Barnum -- Chief Financial Officer
Thank you very much. Good morning, everyone. As always, the presentation is available on our website, and please refer to the disclaimer in the back. Starting on Page 1.
The firm reported net income of $9.7 billion, EPS of $3.12 on revenue of $33.5 billion, and delivered an ROTCE of 18%. The only significant item this quarter was discretionary net investment securities losses in corporate of $959 million as a result of repositioning the portfolio by selling U.S. treasuries and mortgages. Our strong results this quarter reflect the resilience of the franchise in a dynamic environment.
Touching on a few highlights. We had a record third quarter -- we had record third-quarter revenue in Markets of $6.8 billion, we ranked No. 1 in retail deposit share based on FDIC data, and credit is still healthy with net charge-offs remaining low. On Page 2, we have more detail.
Revenue of $33.5 billion was up $3.1 billion or 10% year on year. Excluding the net investment securities losses, it was up 13%. NII ex-markets was up $5.7 billion or 51%, driven by higher rates. NIR ex-markets was down $3.2 billion or 24%, largely driven by lower IB fees and the securities losses.
And markets revenue was up $502 million or 8% year on year. Expenses of $19.2 billion were up $2.1 billion or 12% year on year, driven by higher structural costs and investments. And credit costs of $1.5 billion included net charge-offs of $727 million. The net reserve build of $808 million included a $937 million build in wholesale, reflecting loan growth and updates to the firm's macroeconomic scenarios, partially offset by $150 million release in home lending.
On the balance sheet and capital on Page 3. We ended the quarter with a CET1 ratio of 12.5%, up 30 basis points versus the prior quarter, which was primarily driven by the benefit of net income less distributions, partially offset by the impact of AOCI. RWA was down approximately $23 billion quarter on quarter, with growth in lending more than offset by continued active balance sheet management and lower market risk RWA. Given our results this quarter, we are well-positioned to meet our CET1 targets of 12.5% in the fourth quarter and 13% in the first quarter of 2023.