JPMorgan Chase & Co. (NYSE:JPM) Q3 2023 Earnings Call Transcript October 13, 2023 8:30 AM ET
Company Participants
Jamie Dimon - Chairman and CEO
Jeremy Barnum - CFO
Conference Call Participants
John McDonald - Autonomous Research
Steven Chubak - Wolfe Research
Ebrahim Poonawala - Bank of America
Ryan Kenny - Morgan Stanley
Gerard Cassidy - RBC
Erika Najarian - UBS
Glenn Schorr - Evercore ISI
Mike Mayo - Wells Fargo Securities
Jim Mitchell - Seaport Global
Matt O'Connor - Deutsche Bank
Operator
Good morning, ladies and gentlemen. Welcome to JPMorgan Chase's Third Quarter 2023 Earnings Call. This call is being recorded. Your line will be muted for the duration of the call. We will now go live to the presentation. Please standby. At this time, I would like to turn the call over to JPMorgan Chase's Chief Financial Officer, Jeremy Barnum, and their Chairman and CEO, Jamie Dimon.
Mr. Dimon, please go ahead.
Jamie Dimon
Hey, good morning, everybody. Before we start the actual call, I want to repeat something we just said on the press call. So before we get into the discussion about third-quarter earnings, I just want to say how deeply saddened that we all are about the recent horrific attacks on Israel and the resulting bloodshed and more. Terrorism and hatred have no place in our civilized world and all of our hearts here at JPMorgan Chase go out to all who are suffering.
Jeremy Barnum
Thanks, Jamie, and, of course, I very much echo this sentiment. Now, let's turn to our first-quarter earnings results. 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 $13.2 billion, EPS of $4.33, and revenue of $40.7 billion, and delivered an ROTCE of 22%. These results included $669 million of net investment securities losses in Corporate and $665 million of Firmwide legal expense.
On Page 2, we have some more detail. Similar to last quarter, we have called out the impact of First Republic where relevant. For this quarter, First Republic contributed $2.2 billion of revenue, $858 million of expense, and $1.1 billion of net income.
Now, focusing on the Firmwide results, excluding First Republic, revenue of $38.5 billion was up $5 billion or 15% year-on-year. NII, ex-Markets, was up $4.8 billion or 28%, driven by higher rates and higher revolving balances in Card, partially offset by lower deposit balances. NIR, ex-Markets, was up $374 million or 4%, which included lower net investment securities losses than the prior year. And Markets revenue was down $190 million or 3% year-on-year. Expenses of $20.9 billion were up $1.7 billion or 9% year-on-year, primarily driven by ongoing growth and front office and technology staffing, as well as wage inflation and higher legal expense. And credit costs were $1.4 billion, predominantly driven by net charge-offs in Card, and included a $102 million net reserve release, driven by changes in the central scenario, primarily offset by card loan growth.