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.
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