Last week, JPMorgan Chase & Co (JPM) reported strong third-quarter earnings, reporting figures better than market estimates. The bank reported revenue of $29.94 billion versus $28.39 billion expected and EPS of $2.92 versus $2.26 per share expected. The bank reserved $611 million for credit reserves for the quarter, much lower than the $903 million for the same quarter a year ago. The bank earned $9.4 billion in net income.
JPMorgan’s markets and securities services revenue increased 29% to $7.8 billion, Fixed-income trading revenues rose by 29% to $4.6 billion, equity trading surged 32% to $2 billion, and securities services revenue remained straight at $1 billion. CEO Jamie Dimon noted that the people with small businesses and those unemployed need help the most with stimulus.
CFO Jennifer Piepszak said the firm views “another round of stimulus as important” to relieve the pain and suffering felt by many. She added that the bank does not assume future stimulus in its current level of loan loss reserves, but another round would give the firm “more confidence” in its level of reserves, on a call with reporters.
The bank’s consumer and community banking’s revenue dropped 9% from a year ago to $12.9 billion, while its net income dropped 9% to $3.9 billion.
Average deposits jumped 28%, while client investment assets rose 11%. Average loans fell 7%, and credit card sales volume declined 8%.
JPMorgan Chase & Co (JPM) is a global financial service leader in investment banking, financial services for consumers and businesses, financial transaction processing, asset management, and commercial banking. To learn more about JPMorgan Chase & Co. (JPM) and to continue to track its progress please visit the Vista Partners JPMorgan Chase & Co. Coverage Page.
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