JPMorgan Earnings Surpasses Estimates on M&A Boom and Loan Growth | Money


A sign outside the headquarters of JP Morgan Chase & Co in New York, September 19, 2013. – Photo Reuters

NEW YORK, October 13 – JPMorgan Chase & Co today announced a third quarter profit increase that topped estimates as the Wall Street branch of the bank benefited from a global trading boom, while that its consumer bank benefited from higher interest income on loans.

The bank, whose fortunes reflect the health of the US economy, said strength in mergers and acquisitions was offsetting a slowdown in trade. Its consumer bank also had a strong quarter as credit card spending rose and customers paid off loans at a slower pace, meaning the bank earned more interest income.

JPMorgan’s net profit reached $ 11.7 billion (RM 48.6 billion), or $ 3.74 per share, in the quarter ended September 30, from $ 9.4 billion, or 2, $ 92 per share, a year earlier.

Analysts on average expected earnings of US $ 3.00 per share, according to Refinitiv.

JPMorgan’s results were also helped in part after pulling out new reserves it had set aside during the height of the pandemic to cover loans that could potentially go bad.

Banks were forced to set aside billions last year for possible defaults during the pandemic. But consumer-friendly monetary policy and stimulus controls have boosted spending by the average American consumer and increased savings, allowing banks to free up some of their reserve capital.

Banking on Wall Street has remained strong for most of the past year, as large financial sponsors and cash-intensive companies embarked on a trading frenzy, helping to drive up bank fees. investment in Wall Street’s biggest banks at record levels.

Total reported revenue increased 1% to US $ 29.65 billion in the quarter.

However, trading income has taken a hit this year, having benefited from volatile financial markets during the peak of the pandemic last year.

Other major US banks, including Bank of America, Citigroup, Wells Fargo and Morgan Stanley, will report their results tomorrow, while Goldman Sachs, Wall Street’s top investment bank, will close the earnings season on Friday. – Reuters


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