By KEN SWEET, AP Business Author
NEW YORK (AP) — JPMorgan Chase & Co.’s third quarter profit fell by 17% from a 12 months earlier, because the bank put aside roughly a billion dollars to cover potential losses in an economic recession that CEO Jamie Dimon has said could are available in six to nine months.
The nation’s largest bank by assets posted a profit of $9.74 billion, or $3.12 a share, down from a profit of $11.69 billion, or $3.74 a share, in the identical period a 12 months earlier. The outcomes did beat Wall Street’s expectations of $2.90 a share, in line with FactSet.
While the bank grew revenue and loans within the quarter, any additional profit it made in comparison with last quarter were erased by credit losses. The bank added $937 million to its loan-loss reserves, which is money banks put aside to cover potentially bad loans, in what the bank said reflects “updates to the Firm’s macroeconomic scenarios.” The bank also charged off roughly $700 million in loans, up sharply from a 12 months earlier.
“While we hope for the very best, we all the time remain vigilant and are prepared for bad outcomes so we will proceed to serve customers even in essentially the most difficult of times,” Dimon said in a prepared statement.
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The bank’s trading desks had a mostly successful quarter, despite the market’s volatility the past several months. Bond trading revenues rose 22% while equity trading revenues fell 11%.
Firm-wide, JPMorgan had revenues of $32.72 billion, in comparison with $29.65 billion in the identical period a 12 months earlier.
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