JPMorgan Chase added more than 650,000 net new checking accounts in the third quarter, the bank said October 13, in a quarter when it earned $15.3 billion. Chairman and chief executive Jamie Dimon called it “another quarter of strong results” and said the bank ranked first in U.S. retail deposits for the sixth year running.
The profit figure is lower than it might have been. JPMorgan took a $658 million loss on investment securities, which it treats as a significant item. Without it, net income was $15.8 billion, or $5.75 a share, against $5.57 a share as reported.
What 650,000 new checking accounts says
The new-account figure comes from Dimon’s own statement in the release: “we added over 650,000 net new checking accounts.” Net means openings minus closings. Debit and credit card sales volume rose 10 percent from a year ago, active mobile customers rose 7 percent, and client investment assets in the consumer unit grew 15 percent, the release says.
People who bank with one of the large national banks tend to wonder whether record results change anything about their own account. Nothing in the release changes fees, minimum balances or interest rates on checking or savings. What it shows is where customers are putting money, and that the largest U.S. bank is still bringing in deposits at a fast clip. Average deposits across the firm were up 8 percent from a year ago and 2 percent from the second quarter. In the consumer bank, average deposits were up 4 percent on the year and flat from the prior quarter.
The Federal Reserve meets October 28, the next date that could move interest rates, and that decision lands on everyone with a checking, savings or card balance.
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Where the $15.3 billion came from
JPMorgan’s third-quarter earnings release puts revenue at $50.2 billion as reported and $50.9 billion on a managed basis, which adds back certain accounting adjustments. The consumer bank, which holds the checking accounts, cards and home loans, did the heavy lifting: it earned $5.7 billion, up 13 percent, on revenue of $21.2 billion, up 9 percent.
The bank’s profit has not been a straight line. Pulse 2.0, a financial news site, reported that the second quarter brought a record $21.2 billion, which makes $15.3 billion a step back from that mark. Beinsure, an insurance and finance news site, said in its bank earnings roundup that the result fell short of a $16.3 billion forecast.
Other lines grew faster than the consumer bank. The corporate and investment bank earned $8.2 billion, up 20 percent, on revenue of $22.7 billion, up 14 percent. Asset and wealth management revenue rose 14 percent to $6.9 billion, with client assets up 15 percent to $7.9 trillion and $263 billion of net client inflows, Dimon said. Net interest income, the gap between what the bank earns on loans and pays on deposits, was $27.1 billion, up 13 percent, or $24.7 billion excluding markets activity, up 6 percent. Noninterest expense rose 12 percent to $27.3 billion. Tangible book value per share reached $112.64, up 7 percent.
Cards: charge-offs eased
The card net charge-off rate, the share of card balances the bank gave up collecting, was 2.91 percent in the third quarter. Pulse 2.0 reported 3.34 percent in the second. The bank’s overall provision for credit losses was $2.7 billion, which includes $2.2 billion of net charge-offs and a $539 million increase in reserves, mostly tied to loans to businesses.
Dimon’s statement in the release also carried a warning. “These forces may be manageable, but we remain prepared for a wide range of outcomes,” he said.
Lending grew more slowly in the consumer bank than across the firm. Average consumer loans were up 2 percent on the year and 1 percent from the second quarter, according to the release, while the firm’s average loans rose 10 percent. The consumer bank’s return on equity, a measure of profit against the money shareholders have invested in it, was 36 percent. For the whole firm, Dimon cited a return on tangible common equity of 21 percent, using the $15.8 billion profit that leaves out the securities loss.
Dividends, buybacks and capital
JPMorgan paid $4.4 billion in common dividends, or $1.65 a share, in the quarter. It cut share repurchases to $664 million net. Dimon said, “In line with our hierarchy, we reduced share repurchases this quarter.” The bank’s common equity tier 1 capital stood at $304 billion, a ratio of 13.9 percent under the standardized measure and 14.1 percent under the advanced measure. Average loans were $1.6 trillion, up 10 percent on the year.
Checking what your own account is paid
A customer who wants to know where a checking account stands can start with the bank’s own fee schedule and rate sheet for the account. The monthly fee, the balance that waives it and the rate on any savings tied to the account are the numbers that decide the cost, not the bank’s quarterly profit. Deposits are protected up to $250,000 per depositor, per insured bank, per ownership category, under the rules the FDIC publishes.
The Fed’s October 28 meeting is the next scheduled rate decision. Redfin’s economist commentary on the latest inflation report put the odds of a rate hike at that meeting at 50-50.
The bank’s figures are preliminary until its quarterly report is filed with the SEC, and the earnings release is posted on JPMorgan’s investor relations site for anyone who wants the full tables.
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This article was produced with AI assistance and reviewed by The Financial Wire’s editorial team.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
