NEW YORK (TheStreet) -- JPMorgan (JPM - Get Report) shares were rising 0.91% in premarket trading Friday, despite posting a third-quarter loss. JPMorgan reported a third-quarter loss of $380 million, compared to a profit of $5.71 billion in the year-earlier quarter. This marks the first loss under CEO Jamie Dimon and the first since the second quarter of 2004.
The loss is mainly due to the outlay of $7.2 billion in legal expenses, including reserves set aside for future settlements and fines. The bank would have netted $5.8 billion in income had it not been for these expenses.
"While we expect our litigation costs should abate and normalize over time, they may continue to be volatile over the next several quarters," said Dimon in a statement.
TheStreet Ratings team rates JPMorgan Chase & Co as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about its recommendation:
"We rate JPMorgan Chase & C (JPM) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, compelling growth in net income, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
- You can view the full analysis from the report here: JPM Ratings Report
Written by Keris Alison Lahiff.