A decent number for JPMorgan, at least compared to expectations…
EPS of $1.01 comes in ahead of expectations of about $.88. Shares are up to about $41in the pre-market compared to the $40 close yesterday.
Jamie Dimon, Chairman and Chief Executive Officer, commented: “Our third-quarter net income of $4.4 billion was the result of the good underlying performance of our businesses. The Investment Bank delivered solid earnings while maintaining its number one ranking in Global Investment Banking Fees. Retail Financial Services reported strong mortgage loan production. Card Services increased sales volume by 7% compared with the prior year, and positive credit trends assisted in delivering improved results. Commercial Banking reported record revenue, while Asset Management had strong net inflows of $38 billion this quarter.”
Dimon added: “We are pleased to report a continued overall decline in credit costs, although our mortgage and credit card portfolios continued to bear very high net charge-offs. Our mortgage delinquency trends remained relatively flat compared with the prior quarter, and we expect mortgage credit losses to remain at these high levels for the next several quarters. If economic conditions worsen, mortgage credit losses could trend higher. With respect to our credit card portfolio, delinquencies and net charge-offs continued to improve, and we reduced loan loss reserves by $1.5 billion this quarter as estimated losses declined. We expect credit card net charge-offs to continue to improve next quarter.”
Not surprisingly, the company’s trading business slumped a bit compared to last quarter. Net income in Treasury & Security Services fell from $292 million to $251 million.
Investment banking was also mediocre: