The New York-based bank made $3.4 billion, or 97 cents a share, for the quarter ended Sept. 30, up from the year-ago $3.3 billion, or 92 cents a share. Analysts surveyed by Thomson Financial were looking for a 90-cent profit.
JPMorgan said it took markdowns in the latest quarter of $1.3 billion on leveraged lending funded and unfunded commitments and weaker trading performance.
Retail financial services revenue rose 18% from a year ago, though net income in the segment dropped 14% as the bank took a $306 million increase in home equity loan reserves."Our firm performed well overall in the third quarter, despite challenging credit and market conditions," said CEO Jamie Dimon. "Asset Management and Treasury & Securities Services delivered record earnings, Card Services and Commercial Banking produced double-digit earnings growth, and Private Equity posted another quarter of strong gains. Investment banking is a volatile business, and while we would typically expect lower earnings in the Investment Bank during a difficult market environment, such as this one, we still believe that our performance could have been a bit better. Finally, Retail Financial Services had good revenue growth while further strengthening its reserves for home equity loan losses." The news comes amid a rash of banking-sector write-offs, led by multibillion hits at Citi (C - Get Report), Merrill Lynch (MER) and UBS (UBS). JPMorgan rose $1.67 to $46.78 in premarket trading.