Shares of JPMorgan Chase & Co. (JPM  ) rose in early trading on Wednesday, despite the company reporting downbeat third-quarter results.

The company reported a strong top-line beat, driven by broad-based revenue growth, with the Commercial & Investment Bank (CIB) being "the standout segment," according to RBC Capital Markets.

The JPMorgan Chase Rating: Analyst Gerard Cassidy maintained an Outperform rating and price target of $370.

The JPMorgan Chase Thesis: The third-quarter earnings aligned with the company's trend of delivering best-in-class results, Cassidy said in the note.

He highlighted the following from the latest print:

  • Earnings came in at $5.57 per share.
  • Excluding one-item items, adjusted earnings would have been $5.80 per share, still missing consensus of $5.91 per share.
  • Managed revenue grew 8.0% year-over-year to $50.9 billion.
  • Net interest income (NII) rose 13% year-over-year to $27.1 billion, driven by higher deposit and loan balances.
  • Reported net income grew around 6.0% year-over-year to $15.3 billion, translating to a 20% return on tangible common equity (ROTCE).
CIB was the standout segment, with net income growing 20% year-over-year to $8.2 billion, the analyst stated.

"The real headline was Equity Markets," with revenue growing 49% year-over-year to $5.0 billion, driven by "strength in Prime brokerage and Derivatives," which pushed total Markets revenue up 15% to $10.3 billion, he added.

"The company's diversified business model combined with the billions of dollars of investments made over the last decade have resulted not only in a fortress balance sheet but also a highly profitable diversified banking model," Cassidy wrote.

JPMorgan Chase seems poised to benefit from the Basel III - Endgame re-proposal, released in March, the analyst further stated.

JPM Price Action: Shares of JPMorgan Chase had risen by 0.42% to $332.82 at the time of publication on Wednesday.