JPMorgan profit down 17% as dealmaking slumps
Dealmaking around the world has slumped
JPMorgan CEO Jamie Dimon calls for investment in oil and gas
JPMorgan CEO Jamie Dimon testified that there should be "proper" oil and gas investment to keep energy prices low and facilitate an "effective transition to reduce CO2."
JPMorgan Chase & Co reported a 17% drop in third-quarter profit on Friday, as rising U.S. interest rates sapped the appetite for deals and weighed on its investment-banking arm.
Profit for the quarter ended Sept. 30 was $9.74 billion, or $3.12 per share, compared with $11.69 billion, or $3.74 per share, a year earlier, the bank said.
Analysts had expected $2.88 per share. It was not immediately clear if reported numbers were comparable to estimates.
The bank set aside $808 million in reserves, as the U.S. Federal Reserve's efforts to cool the economy through interest rate hikes have stoked fears of an economic downturn.
By comparison, in the same quarter last year, the bank had released $2.1 billion of reserves that it had kept aside for potential COVID losses.
Dealmaking around the world has slumped as U.S. companies turned more cautious despite a stronger dollar increasing the appeal of international mergers and acquisitions.
The dearth of activity has led to a slump in banks' fees from underwriting and advising M&A and initial public offerings, contrasting a record run last year.
Investment banking revenue slumped 43% to $1.7 billion.
The bank reported $32.72 billion in revenue for the quarter, up from $29.65 billion last year.