You are here: Home » International » News » Companies
Business Standard

JPMorgan beats profit estimates as markets revival drives trading boom

JPMorgan also benefited as it set aside less reserve provisions, compared with the first two quarters of the year

Topics
JPMorgan Chase & Co | Financial markets

Reuters 

JPMorgan
Revenue from capital markets and investment banking also helped offset declines in its consumer business | Photo: Reuters

comfortably beat Wall Street estimates for third-quarter profit on Tuesday as trading revenue surged past its own expectations on the back of a rebound in global

Trading was a bright spot for the quarter, even as the pandemic decimated the US economy, with thousands of businesses shutting down and the unemployment rate soaring. The economic fallout of the pandemic has triggered one of the worst recessions in decades.

JPMorgan also benefited as it set aside less reserve provisions, compared with the first two quarters of the year.

Revenue from capital markets and investment banking also helped offset declines in its consumer business.

The bank's trading revenue jumped 30 per cent to $6.6 billion.

Chart

The biggest US lender set aside $611 million for loans that may go bad, less than the $10.5 billion it put away against future losses in the previous quarter.

The bank's net income rose to $9.44 billion, or $2.92 per share, in the quarter ended Sept. 30, from $9.1 billion, or $2.68 per share, a year earlier.

Analysts on average had expected earnings of $2.23 per share, according to Refinitiv.

JPMorgan's net interest income fell 9 per cent to $13.1 billion as the U.S. Federal Reserve kept rates at nearly zero to offset the impact of the pandemic.

Citigroup Inc reports later on Tuesday, followed by Goldman Sachs Group Inc, Wells Fargo & Co and Bank of America Corp on Wednesday and Morgan Stanley on Thursday.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, October 14 2020. 00:45 IST
RECOMMENDED FOR YOU
.