clear
Friday December 15th, 2017 12:47PM

JP Morgan 3Q profits rise, helped by consumer banking

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — JPMorgan Chase & Co. third-quarter profits rose 7 percent from a year earlier, as the bank as able to increase revenue in its consumer banking business even though the company saw a sizeable drop in trading revenue in the quarter.

The biggest bank by deposits and assets said Thursday that it earned a profit of $6.73 billion, or $1.76 per share, compared with $6.29 billion, or $1.58 a share, in the same period a year earlier. The results beat analysts' forecast of $1.65 a share, according to FactSet.

JPMorgan's consumer bank was the driver of this quarter's growth, reporting a 16 percent rise in net income. The bank saw higher deposit and loan growth and higher revenue in its credit card division, which the bank has been expanding aggressively in the last year with a new high-end credit card known as Chase Sapphire Reserve. Charge-offs in that business have been creeping steadily higher for several quarters, however, and the bank had to set aside an additional $223 million to cover potential losses.

Despite the creep up in delinquencies, "the U.S. consumer remains healthy," JPMorgan Chase CEO Jamie Dimon said in a statement.

The bank was able to grow loans across the board in its consumer business: credit cards, business loans, auto loans as well as mortgages.

The gains in JPMorgan's consumer banking division were more than enough to make up for declines corporate and investment banking, its other major business. That division reported a 13 percent decline in profits from a year earlier, mostly due to lower trading revenues. Bond trading revenue was down 27 percent and stock trading revenue fell 4 percent, the bank said.

Stock and bond trading revenue has languished this year at major banks because markets have been relatively quiet. JPMorgan Chase, Citigroup, Bank of America and Goldman Sachs all saw trading revenue drop in the second quarter this year, and analysts have been anticipating another decline this quarter.

JPMorgan's total revenue was $26.2 billion on a managed basis, which was more than the $25.19 billion that analysts had been looking for. The firm's return on common equity, a measure of how well a bank is performing, was 11 percent in the quarter, up from 10 percent a year earlier. Major banks like JPMorgan try to keep that metric above 10 percent.

JPMorgan's stock was down 24 cents in pre-market trading to $96.60. It's up 12 percent this year.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News, AP Business - Industries, AP Business - Financial Services
© Copyright 2017 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
JP Morgan 3Q profits rise, helped by consumer banking
JPMorgan Chase beats 3Q profit expectations, helped by consumer banking division
7:23AM ( 6 minutes ago )
French President Macron launches Step 2 of labor reforms
French President Emmanuel Macron is launching step two of his campaign to rethink French labor law, focusing on unemployment benefits and job training
7:05AM ( 25 minutes ago )
Austria set for rightward political turn after Sunday vote
Ahead of Austrian national elections, the question is less whether the country will swing rightward under the next government and more about how sharp that turn will be, with voters set to reward parties that have fed on fears of immigration and Islam
7:02AM ( 27 minutes ago )
Associated Press (AP)
10 Things to Know for Today
Among 10 Things to Know: Gusty winds and low humidity could spur deadly Northern California wildfires; Trump hopes to boost lower-premium health insurance plans; Questions remain about police response to Las Vegas massacre
6:16AM ( 1 hour ago )
Global shares mixed as Europe falls back after Asian gains
Global shares mixed as European shares fall back after another day of gains in Asia
5:21AM ( 2 hours ago )
Plan to scrap state and local tax deduction hits resistance
As President Donald Trump looks to sell his tax overhaul plan, the White House is getting pushback from an unusual alliance of interests opposed to his plans to scrap the state and local tax deduction
4:41AM ( 2 hours ago )
AP Business
US demands raise fears that leaving NAFTA could hurt economy
The North American Free Trade Agreement is in its 23rd year, but there are growing doubts it will survive another year.
2:02AM ( 5 hours ago )
Japan's Kobe Steel reports wider fudging of metals data
Japanese steelmaker Kobe Steel reports wider problems with faked inspections data for metals used in cars, aircraft, other products
11:24PM ( 8 hours ago )
As scope of Weinstein conduct widens, questions of who knew
As the grim scope of Harvey Weinstein's alleged sexual abuse has continued to expand, attention is turning to the question of who knew about the film's mogul's behavior
6:49PM ( 12 hours ago )
AP Business - Corporate News
Unlikely allies fight Trump backing of coal, nuclear energy
An unusual coalition of business and environmental groups is fighting an Energy Department plan to bolster coal and nuclear at the expense of natural gas, wind and solar
3:36AM ( 3 hours ago )
Unlikely allies fight Trump plan for coal, nuclear energy
An unusual coalition of business and environmental groups is fighting an Energy Department plan to bolster coal and nuclear at the expense of natural gas, wind and solar
3:34AM ( 3 hours ago )
Assets of ex-Brazilian president frozen over refinery deal
A Brazil court has ordered ex-President Dilma Rousseff's assets frozen over an estimated $580 million loss at state oil company Petrobras resulting from the purchase of a Texas refinery
7:06PM ( 12 hours ago )
AP Business - Industries
World stocks mixed as momentum fades after Wall St record
World stocks mixed ahead of the release of the latest Fed meeting minutes, Chinese communist party meeting next week
7:57AM ( 23 hours ago )
Trump health coverage alternatives may pose risk to the sick
White House plan could bring more health insurance choices and cheaper options to some but may pose risk to the sick
5:38PM ( 1 day ago )
Trian takes a seat at General Electric
General Electric names Trian Fund Management Ed Garden to its board
7:40AM ( 2 days ago )
AP Business - Financial Services
French President Macron launches Step 2 of labor reforms
French President Emmanuel Macron is launching step two of his campaign to rethink French labor law, focusing on unemployment benefits and job training
7:05AM ( 25 minutes ago )
Austria set for rightward political turn after Sunday vote
Ahead of Austrian national elections, the question is less whether the country will swing rightward under the next government and more about how sharp that turn will be, with voters set to reward parties that have fed on fears of immigration and Islam
7:02AM ( 28 minutes ago )
Spain celebrates national day amid Catalan secession crisis
Thousands of Catalans who want their region to remain in Spain marked the country's national day Thursday, marching through Barcelona waving both Spanish and Catalan flags and shouting "I am Spanish"
7:00AM ( 30 minutes ago )
Cannes festival 'dismayed' over Weinstein allegations
Cannes film festival officials say they have been "dismayed" to learn about the accusations of sexual violence against Hollywood film producer Harvey Weinstein
6:50AM ( 39 minutes ago )
Volcanic eruption in Japan spreads ash in 4 cities, towns
A volcano in southwestern Japan has erupted for the first time in six years and spread ash in nearby cities and towns
6:33AM ( 56 minutes ago )