JPMorgan’s Dimon Warns Of ‘Most Dangerous Time’ In Decades Amid Huge Bank Earnings

Topline

JPMorgan CEO Jamie Dimon warned conflicts in Ukraine and the Middle East are creating “the most dangerous time the world has seen in decades,” as interest rate increases gave the bank an earning boost in the third quarter of the year.

JPMorgan, Citigroup and Wells Fargo all reported better than expected third quarters on Friday.

AP/Jacquelyn Martin

Key Facts

JPMorgan reported a $13.2 billion profit last quarter, up 35% on the same period last year.

America’s biggest bank brought in $39.87 billion in revenue, up slightly on $39.63 billion forecast by analysts surveyed by FactSet.

The bank’s momentum in the third quarter is the result of “years of investment” and consistency in clients, Dimon said, but warned global risks as well as high government debt levels increase the risk of “elevated” inflation and booming interest rates.

Crucial Quote

“The war in Ukraine compounded by last week’s attack on Israel may have far-reaching impacts on energy, food markets, global trade, and geopolitical relationships,” Dimon said. “This may be the most dangerous time the world has seen in decades.”

Tangent

It’s not just JPMorgan—many of the larger banks posted positive quarterly earnings Friday, despite the economic conditions. Wells Fargo surpassed revenue expectations of $20.11 billion, bringing in $20.86 billion last quarter. Citigroup reported $20.14 billion in revenue in the same period, surpassing the $19.31 billion the bank was expected to earn.

Key Background

JPMorgan’s size—it’s the largest bank in the country—and reputation have helped its strong standing throughout recent years of record inflation and rising interest rates. The bank has had multiple successive quarters of increased income. It made $22.73 billion in net interest income—the difference between what the bank earns on loans and pays out on deposits—up some 30% from last year and an increase of 4% from the second quarter of the year.

What We Don’t Know

Fourth quarter earnings are likely to paint a clearer picture of what the recent conflict in the Middle East could mean for the domestic economic health.