JP Morgan Chase’s profit soars

<p>The US banking giant reported a $5.6 billion profit in Q3 2014.</p>

US banking giant JP Morgan Chase has seen its profit soar in the third quarter of the year. It has reported a $5.6 billion (£3.5 billion) profit for the three months to September 30th. 

The quarterly results represent a significant improvement on a year earlier, when the bank made a $380 million loss after it set aside billions of dollars to settle charges relating to the sale of mortgage-related investment products, the BBC reports.

The bank posted a total revenue for the quarter of $25.2 billion, up five per cent on a year earlier.

Revenue at the corporate and investment banking business fell by $600 million with profits down by 34 per cent, while revenue at the asset management arm grew by $250 million to $3 billion, with profits up 20 per cent.

According to the New York Times, JPMorgan’s revenues were helped by the buoyant market for mergers and acquisitions, which pushed advisory fees up 28 per cent from the third quarter of 2013.

The bank’s chief executive, Jamie Dimon, said in a conference call on Tuesday (October 14th) that the bank continued to see a “broad based recovery” in the United States economy. He added that recent turbulence in the global economy “could slow down American growth a little bit, but we think you will still have growth in America.”

"Our businesses continue to perform well. Corporate America is in good shape, with strong balance sheets, and employment trends continue to be positive," he noted.

JPMorgan was the first of three big US banks reporting today. Citigroup Inc reported a 13 per cent rise in adjusted net profit, while Wells Fargo reported a 1.7 per cent increase in net earnings.

Shares of the banking giant were down 1.7 per cent at $57.19 (£35.9) in pre-market trading.

Find up to date information on the FTSE 100 and spread betting strategies at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.