Total revenue increased 2% to $30.44 billion. Analysts had expected average revenue of ₹29.76 billion (Photo: Reuters)
hey J. P. Morgan It posted higher-than-expected quarterly earnings on Wednesday as it freed up more reserves to make up for debt losses, while a boom in global trade dented record M&A advisory revenue.
The largest US bank said on Wednesday that strong merger and acquisition activity and strong IPO performance offset the brokerage slowdown in the third quarter.
Business consulting revenue nearly tripled, while the asset and wealth management unit also posted strong growth.
“JP Morgan has performed well as the economy continues to grow well despite the impact of the delta version and supply chain disruptions,” said Jamie Dimon, chief executive of JP Morgan.
The bank reversed its 2.1 billion provisions to make up for the expected loan loss in the quarter.
Banks were forced to set aside billions last year to face potential defaults resulting from social distancing measures. But consumer-friendly monetary policy and stimulus programs boosted consumption and increased savings.
JPMorgan’s net income for the quarter was $11.7 billion, or $3.74 per share, up from $9.4 billion, or $2.92 per share, a year ago. According to Refinitiv, analysts were predicting a profit of $3 per share on average.
Total revenue increased 2% to $30.44 billion. Analysts had expected average revenue of ₹29.76 billion.
Net income from the bank’s asset and wealth management division increased 21%, with higher commissions on wealth management for large institutions and individual investors. Investment banking income rose 45% to $3 billion.
The retail bank also had a solid quarter as credit card spending increased and customers paid off loans at a slower rate, meaning the bank generated more interest income.
Other major US banks, including Bank of America, Citigroup, Wells Fargo and Morgan Stanley, will report results on Thursday. Goldman Sachs releases its figures on Friday.
