JPMorgan Chase Beats Q3 Estimates As Loan Losses Improve - InvestingChannel

JPMorgan Chase Beats Q3 Estimates As Loan Losses Improve

JPMorgan Chase (NYSE:JPM), the biggest U.S. bank based on assets under management, exceeded expectations for its third-quarter profit on a $1.5 billion U.S. boost from better-than-expected loan losses.

JPMorgan Chase, whose results kick-off third quarter earnings season in the U.S., said the boost came after it released $2.1 billion U.S. in reserves and had $524 million U.S. of net charge offs in the quarter.

Earnings came in at $3.74 U.S. per share versus $3 that was expected by analysts. JPMorgan’s revenue for the third quarter amounted to $30.44 billion U.S. versus $29.8 billion U.S. expected.

JPMorgan’s trading and advisory division moderated in the third quarter. In September,
bank executive Marianne Lake said that trading revenue will be 10% lower than a year earlier.

Also in September, JPMorgan Chase acquired restaurant review service “Infatuation” and college-planning platform “Frank.” That followed three acquisitions of fintech start-ups over the past year.

Shares of JPMorgan Chase have risen 31% this year and now trade at $165.36.