Jamie Dimon is still upbeat about the state of his bank — and the American economy.
JPMorgan Chase (JPM) reported earnings and revenue for the third quarter that easily topped forecasts Friday. Profit surged 24% from a year ago to nearly $8.4 billion.
The strength was led by JPMorgan Chase’s consumer and commercial banking units and less by its Wall Street trading and investment banking businesses.
Dimon praised Washington’s policy changes and tax reform for the boost, saying in a press release that the bank is “extremely excited to be expanding again” thanks to “smart regulatory policy and a competitive corporate tax system.”
Dimon also said the global economy continues to hum along, although he acknowledged that brewing trade tensions could be a problem going forward. During a call with reporters Friday, Dimon also listed worries about emerging markets – most notably Turkey and Argentina.
“The US and the global economy continue to show strength, despite increasing economic and geopolitical uncertainties, which at some point in the future may have negative effects on the economy,” Dimon said.
But he expressed optimism about where trade talks might be heading, despite nervousness about getting a deal done with China.
Dimon said that the business community may not agree with President Trump’s aggressive tactics – especially with allies such as Canada, Mexico and Europe. But CEOs like the results.
“It was the right strategy to get a new deal done with Canada and Mexico first and then work on China,” Dimon said.
Dimon also didn’t seem too concerned about the fact that interest rates are rising. Bond yields have spiked lately and the average rate on a 30-year fixed mortgage recently topped 5%.
He said that the Federal Reserve is raising interest rates for the right reasons – namely that the economy is growing, wages are rising and companies are spending on capital expenditures.
“All things being equal, rates going up are a plus,” Dimon told reporters. He also dismissed criticism by President Trump about the fact that the Fed has been raising rates.
“I’ve never seen a president that wants interest rates to go up,” Dimon said, adding that he thinks Fed chair Jerome Powell is doing a great job.
Wall Street seems to think Dimon is doing a great job too. JPMorgan Chase’s shares rose in early trading Friday on the news, helping to lift the broader market after two straight days of bruising losses.