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- 1 The JPM stock price: The market has been on an upswing since the Federal Reserve put a halt to increasing interest rates.
- 2 The Commercial Banking (CB) division saw a Return On Equity (ROE) of 25%
- 3 The current price is near a resistance level, see whether a breakout is possible.
The monetary outcomes for the 3rd quarter of JP Morgan Chase and Co. (NYSE: JPM) came off better than most analysts expected. It is because the organization reported a revenue of $39.9 Billion, and a return on average tangible common equity (RoTCE) of 22%, demonstrating that it performed outstandingly well.
In any case, Jamie Dimon, the CEO and Chairman of JP Morgan, stated that the firm’s solid monetary outcomes were driven by over-procuring on net interest pay and low credit costs. He further stated that this will ultimately standardize as the market comes back near the neutral zone.
Financial Highlights of the 3rd Quarter
In the report, Chase mentioned that their average loans went up by 17%, which is a significant increase, while the average deposits decreased by 4%. The Consumer & Community Banking (CCB) division saw an ROE of 41%, with average deposits down by 3%, and client investment assets up by 43%. In addition to this, the average loans were up by 27% YoY and by 9% quarter on quarter. Furthermore, the debit and credit card sales volume increased by 8%, and active mobile customers increased by 9%.
The Commercial Banking division saw an ROE of 25%, with gross Investment Banking and Markets revenue of $821 Million, hike of 8%. Moreover, the bank saw an upsurge in their loan books with the average loans increasing by 24% Year-on-Year. Meanwhile, the average deposits during this period decreased by 7% YoY.
Management Divisions Outperformed
The asset & wealth management (AWM) division reported an ROE of 32%, with assets under management (AUM) amounting to $3.2 Trillion, up by 22%. The average loans increased by 3% YoY and up by 2% QoQ, while the average deposits decreased by 20% in the same period
‘Fed is not done yet’
The Federal Reserve as on late Friday has chosen to keep the rate somewhere in the range of 5.25% and 5.50%. In any case, Jamie Dimon, in a meeting with Yahoo Finance, said that the rate could further go up by 75 basis points. He cautioned organizations to be prepared for a circumstance where the Central bank could increase financing costs.
Technical Analysis and Prediction of the JPM Stock Price
At present, the JPM stock price has reclaimed its support level of $137, which made the stock price go up to its immediate resistance of $143. The momentum seems strong with its 50-day EMA and 150-day EMA close to the price. The price prediction is bullish, and the bulls will likely to make it past the current resistance levels.
Conclusion
JP Morgan Chase and Co. (NYSE: JPM) reported its quarterly earnings for the 3rd quarter. The CEO, Jamie Dimon made a statement about fed interest rates in his interview. The current stock price is in a bullish momentum and the prediction is with the momentum itself
Technical Levels
- Support Levels: $137 and $130
- Resistance Levels: $143 and $149
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks or related indexes comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
