The major US bank is traditionally the first Wall Street bank to publish its business figures.
(Photo: Reuters)
Dusseldorf As the first of the Wall Street banks, industry leader JP Morgan presented its figures for the third quarter on Wednesday. They are again better than expected. Revenues in the summer quarter were a good two percent higher than in the same period last year and reached $ 30.44 billion, analysts had expected $ 29.9 billion.
The profit was $ 11.7 billion after $ 9.4 billion a year earlier, as the bank announced on Wednesday. Earnings per share were $ 3.74, which is also higher than the analysts estimate of three dollars per share.
Robust mergers and acquisitions have made up for a slowdown in trade, said JP Morgan. The consumer credit business has also developed strongly. According to the bank, credit card spending increased. In addition, customers paid back loans more slowly, which means that the bank had higher interest income.
The higher profit is primarily the result of declining risk provisioning. The bank was able to release a net $ 2.1 billion in provisions for possible loan defaults for private and business customers, the company said. In 2020, at the height of the corona pandemic, the money house increased its risk provisions for bad loans.
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“We have released loan reserves as the economic outlook continues to improve,” said JP Morgan boss Jamie Dimon on the quarterly results. However, he emphasized that
these are not “core profits or recurring profits”. They are based on assumptions that are reviewed every quarter and adjusted if necessary. “Excluding the release of net provisions and the tax break, our profits were $ 9.6 billion,” Dimon said.
Before the opening of trading on the New York Stock Exchange, the share price of the major bank fell by 0.5 percent. Since the beginning of this year, however, the shares have increased in value by 31 percent. The majority of the analysts recommend the shares to be bought, the average target price rose by three dollars to 175 dollars. The current rate is a good $ 165.
On tomorrow’s “Super Thursday”, Wells Fargo, Citigroup, Bank of America and Morgan Stanley will be the next banks to present the figures for the third quarter.
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