J.P. Morgan Profit Up 30.5%

The bank's net revenue rises 8%.
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J.P. Morgan Chase (JPM) - Get Report, the nation's third-largest bank, reported a 30.5% jump in third-quarter profit, fueled by higher revenue at its investment bank and commercial lending operation.

In the quarter, the bank earned $3.3 billion, or 92 cents a share, up from $2.53 billion, or 71 cents a share, in the year-ago period. Net revenue at the New York bank rose 8% to $15.4 billion.

The bank surpassed the Thomson Financial consensus estimate of 86 cents a share on revenue of $14.6 billion.

J.P. Morgan is the first of the big three U.S. banks to report earnings this week. On Thursday,


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Bank of America

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, the nation's two biggest banks, will report earnings.

Revenue at J.P. Morgan's investment bank rose 5% to $4.67 billion. But net income from the group declined by 9% mainly because noninterest expenses were up 8% over last year.

"This increase was due primarily to higher performance-based compensation, including the impact of an increase in the ratio of compensation expense to total net revenue,'' the bank said.

Net revenue at its big retail banking operation was largely unchanged, rising 1% from a year ago to $3.55 billion.

Commercial banking net revenue rose 6% to $933 million.

The provision for credit losses dropped 35% from a year ago to $812 million. But the amount of money the bank set aside for bad loans and other assets rose by 65% from the second quarter of this year.