Lower reserves for bad loans boost JPMorgan Chase profits.
JPMorgan Chase reported increased third-quarter profits on Wednesday, citing a stronger economic outlook that allowed it to put $2.1 billion set aside for probable loan defaults earlier in the cycle in earnings.
The giant US bank posted profits of $11.7 billion, up 24 percent from the previous quarter and kicking off the quarterly reporting season for significant financial corporations.
Revenues increased by 1% to $29.7 billion.
JPMorgan’s profits were boosted by a jump in financial consulting income connected to mergers and acquisitions and initial public offerings, in addition to decreased reserves for bad loans.
These profits helped to counterbalance a slight drop in revenues from financial market trading.
Volumes of debit and credit cards increased by 26% at the bank. However, loan growth across the board remained sluggish, the latest example of limited lending attributed to the availability of government assistance programs during the pandemic.
The bank earned “great” results, according to CEO Jamie Dimon, as the economy continues to show “solid growth notwithstanding the dampening effect of the Delta variation and supply chain delays.”
In pre-market trade, shares increased 0.3 percent to $165.77.