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JPMorgan Chase (JPM +4.3%) is trading nicely higher following its Q3 earnings report this morning. The company reported another healthy beat on EPS. JPM has now reported double-digit EPS beats in 8 of the past 9 quarters. Also, revenue rose 6.5% yr/yr to $43.31 bln, which was a bit better than expected. Noninterest revenue was $19.8 bln, up 11% yr/yr, while net interest income excluding Markets was $23.4 bln, up 1%.

• JPM reported a consolidated provision for credit losses (PCL) of $3.11 bln, reflecting net charge-offs of $2.1 bln and a net reserve build of $1.0 bln. Net charge-offs of $2.1 bln were up $590 mln, predominantly driven by Card Services.
• In its Consumer & Community Banking (CCB) segment, revenue fell 3% yr/yr to $17.79 bln. Banking & Wealth Mgmt revenue was $10.1 bln, down 11%, driven by lower net interest income on deposit margin compression and lower deposit balances. Home Lending revenue rose 3% to $1.3 bln. Card Services & Auto revenue was up 11% to $6.4 bln, reflecting higher interest income on higher revolving balances.
• An issue that JPM has been dealing with is customers shifting money into higher-yielding bank accounts. The good news is that, with the Fed now cutting rates, JPM feels like right now it's pretty much in the trough. When you look at yield-seeking behavior, that has come down quite a bit, so that's no longer as much of a headwind as it has been in the past.
• In its Commercial & Investment Bank (CIB) segment, revenue rose 8% yr/yr to $17.02 bln with IB revenue jumping 29% yr/yr to $2.4 bln. In light of the positive momentum throughout the year, JPM is optimistic about its pipeline but the M&A regulatory environment and geopolitical situation are continued sources of uncertainty. Asset & Wealth Mgmt segment revenue rose 9% yr/yr to $5.44 bln, driven by growth in management fees on higher average market levels and strong net inflows.
• In terms of the macro view, CEO Jamie Dimon says JPM has been closely monitoring the geopolitical situation and recent events show that conditions are treacherous and getting worse. Also, while inflation is slowing and the US economy remains resilient, several critical issues remain, including large fiscal deficits, infrastructure needs, restructuring of trade, and remilitarization of the world.
• An interesting question on the call was asking Dimon if he might serve in the new administration. He thinks the chance of that is almost nil and he would probably not do it but he reserves the right to do so. Dimon expects he will be doing his current job for a long period of time or "at least until the board kicks me out."

Overall, we think the upside EPS/revenue results coupled with robust growth in investment banking and home lending are helping push shares higher today. The large increase in its PCL does not seem to be worrying investors much. We think this report generally bodes well for other banks set to report over the next week or so.