JPMorgan Chase & Co (NYSE:JPM) posted stronger-than-expected quarterly results as it kicked off the latest US earnings season, with revenue and profits boosted by a continued flow of initial public offers and takeover deals.
Seeing a brighter economic outlook, the Wall Street giant also yesterday released some of its reserves set aside for potential pandemic bad loans.
Third-quarter net income rose 24% to US$11.69bn on revenues up 1% to US$29.65bn from a rise in average loans and deposits, as well as credit-card spending, while its investment banking fees almost tripled.
Profits were given an extra lift by the release of US$2.1bn from reserves as the bank sees its future outlook improving in sync with the US economy.
Chief executive officer Jamie Dimon was encouraged that the global economy was getting back on track, though he said "we don’t know the future any better than you do".
Earnings per share came in at US$3.74 per share versus US$3.00 expected by analysts.
Shares in the bank fell over 2.6% to $161 by the close of trading, down from last week's all-time high of US$171.51.