By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-America’s biggest bank, JPMorgan Chase & Co on Tuesday reported a profit in its third quarter 2014 as net income went up $5.6 billion or $1.36 per share, a huge improvement from $380 million or $(0.17) recorded in the same period of last year.
Reports say the return to profitability in the Q3 2104 by the lender did not meet the expectations of Wall Street. It said JPMorgan Chase did miss profit expectations of $1.38 per share.
While the earnings of America’ biggest lender missed projections slightly, it revenue performed above expectations as it hit $25.16 billion compared with an estimation of $24 billion; growing revenue up by 5.4 percent in the review period.
The lender said its revenue was enhanced by its fixed income trading operations which earned it $3.51 billion in review period climbing up 2.1 percent.
JPMorgan Chase also in its twenty second consecutive quarter reported its inflows recorded profits of $572 million in the Q3 2014 period increasing 20 percent an improvement of what was reported in the corresponding period of 2013.
Jamie Dimon, chairman and chief executive officer of the bank, commented on the financial results said its businesses continue to perform well. ‘’consumer & community banking deposit growth led the nation as the FDIC reported Chase #1 in deposit growth for the third consecutive year. Our card business delivered double-digit sales volume growth and mortgage banking continues to reposition the business and manage through cyclical-lows,’’ he said in a news release.
He affirmed that JPMorgan Chase saw strong performance in fees, maintaining a #1 position in Global IB fees year to date, with particular strength in equity capital markets.
According to him, in markets, the lender saw increased activity and better performance overall, particularly in currencies and emerging markets. ‘’In commercial banking, strong competition in the industry for quality assets resulted in some spread compression. However, our commercial banking clients leveraged the services of our investment bank, generating record investment banking revenues year to date, and growth in commercial real estate remains strong. Lastly, asset management saw its twenty second consecutive quarter of long-term inflows, record net income and strong margins,” he said.
Dimon while commenting on the global economic trend said the U.S. economy is an exception, showing signs of steady improvement. ‘’Corporate America is in good shape with strong balance sheets and employment trends continue to be positive. JPMorgan continued to support the economic recovery,’’ he affirmed.
The CEO of America’s biggest lender said they provided credit and raised capital1 of $1.6 trillion for its clients during the first nine months of 2014, which included $15 billion for U.S. small businesses.
“Despite challenges, we have continued to deliver strong underlying performance, maintain our fortress balance sheet and liquidity, simplify the business and adapt to regulatory changes. We remain very focused on executing the control agenda and investing to protect our customers and the company for the future,” Dimon concluded.
