Lending offsets bad quarter for trading at JPMorgan Chase
New York — JPMorgan Chase, the largest US bank by assets, reported a 7.1% rise in quarterly profit on Thursday, as gains from loan growth and higher interest rates more than offset a slump in trading revenue. Financial market trading was again a dark spot for the company. Revenue from bond trading dived 27% from a year earlier, when it was boosted by higher market activity due to Brexit and the US election. Equity markets revenue was also down, but by a much smaller 4%. The bank’s shares dipped 0.25% to $96.67 in premarket trading. Several large US banks had warned last month that revenue from trading stocks and bonds would take a hit in the third quarter. But JPMorgan Chase’s average loan growth of 7% helped it offset the hit. Net profit rose to $6.73bn, or $1.76 per share, for the third quarter ended September 30, from $6.29bn, or $1.58 per share, a year earlier. Analysts had expected earnings of $1.65 per share, according to Thomson Reuters IBES. Reuters
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