Home Economy JP Morgan Chase reports a 4% annualised growth in third-quarter profit

JP Morgan Chase reports a 4% annualised growth in third-quarter profit

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  • JP Morgan Chase reports a 4% annualised growth in third-quarter profit.
  • The American multinational registers £22.50 billion of revenue in Q3.
  • The U.S. investment bank values total deposits in Q3 at over £1.54 billion.

JP Morgan Chase & Co. (NYSE: JPM) published its financial results for the fiscal third quarter on Tuesday that highlighted a 4% annualised growth in profit despite the Coronavirus pandemic that has wreaked havoc on the economy this year.

Shares of the company were reported trading about 0.5% up in premarket trading on Tuesday. But JP Morgan Chase tanked 2% on market open. It is now trading at £78 per share that translates to a little under 30% decline year to date in the stock market. Trading stocks online is easier than you think. Here’s how you can buy shares online in 2020.

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JP Morgan’s Q3 financial results versus analysts’ estimates

JP Morgan set aside £471.70 million to cover for future credit losses versus a significantly higher £8.08 billion in the prior quarter. Compared to Q2, its profit in the third quarter came in almost 100% higher. JP Morgan pledged £23 billion last week to help remedy the racial wealth gap.

The U.S. investment bank reported £7.29 billion of profit in Q3 versus the year-ago figure of £7.01 billion. On a per-share basis, it earned £2.25 as compared to a lower £1.72 per share expected. JP Morgan valued its net charge-offs in the fiscal third quarter at £910 million.

In terms of revenue, it registered £22.50 billion on Tuesday versus a higher £22.61 billion in the comparable quarter of last year. Its revenue, however, was stronger than the FactSet Consensus of £21.79 billion.

At £8.88 billion, the American multinational’s corporate and investment banking unit saw a 21% annualised growth in Q3 revenue. Revenue from trading climbed 30% in the third quarter that topped CFO Jennifer Piepszak’s estimate of a 20% increase. In the prior quarter (Q2), JP Morgan had noted a 79% increase in trading revenue.

Other prominent figures in JP Morgan’s earnings report

Other prominent figures in JP Morgan’s earnings report on Tuesday include £9.85 billion of revenue from consumer banking that translates to a 9% year over year decline. Profit from commercial bank, and asset and wealth management registered a 15% and 31% increase in the recent quarter respectively.

The New York-based bank valued total deposits in the third quarter at over £1.54 billion. In comparison, total deposits were capped at £1.18 billion in the same quarter last year. At the time of writing, JP Morgan Chase is valued at £237.50 billion and has a price to earnings ratio of 13.60.