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.