Oct 13 (Reuters) – JPMorgan Chase & Co comfortably beat Wall Street’s projections for its third-quarter results on Tuesday as revenue from its trading business surpassed its own estimates thanks to a rebound in financial markets.
Brokerage operations were the highlight of the quarter, despite the fact that the pandemic has decimated the US economy and left thousands of companies out of the market, causing a sharp rise in the unemployment rate in the United States.
The economic impact of the pandemic unleashed one of the worst global recessions on record.
JPMorgan said it took fewer provisions in the face of the global crisis, compared to the first two quarters of the year. Income from capital markets and investment banking also helped offset declines in its retail consumer units.
The bank’s turnover from brokerage operations jumped 30% to $ 6.6 billion.
America’s largest lender set aside $ 611 million for possible loans that could become bad, well below the $ 10.5 billion it set aside as a provision for future losses in the previous quarter.
JPMorgan’s net income rose to $ 9.44 billion, or $ 2.92 per share, in the quarter ending September 30, a figure that compares with a profit of $ 9.1 billion, or $ 2.68 per share. paper, reported in the same period of the previous year.
On average, analysts expected earnings of $ 2.23 per share, according to Refinitiv.
JPMorgan’s net interest income fell 9% to $ 13.1 billion, as the US Federal Reserve decided to keep the benchmark interest rate close to zero to mitigate the effect of the pandemic.
(Reporting by Noor Zainab Hussain in Bengaluru and David Henry in New York. Edited in Spanish by Marion Giraldo)