JPMorgan Chase faces risks from fluctuating market conditions, including interest rates, foreign exchange, and equity/commodity prices. Credit risk is present in loans, lending commitments, and investment securities, potentially exacerbated by macroeconomic factors like unemployment and GDP growth. Litigation, including ongoing investigations and lawsuits, poses a significant risk of substantial, uncertain losses. Regulatory changes, particularly Basel III revisions, could increase capital requirements. Country risk exists in non-US operations, particularly Russia.
Financial Upside
JPMorgan Chase's net revenue increased 7% in Q3 2024, driven by higher noninterest revenue (asset management, investment banking fees). Net interest income rose 3%, reflecting balance sheet mix and higher wholesale deposit balances. Strong performance in investment banking fees, particularly debt underwriting, is noted. Assets under management grew 23% in Q3 2024, indicating strong client activity and investment inflows.
