JPMorgan profits for Q3 up by almost a quarter, figures show

14 October 2010

JPMorgan has posted an increase of 23 per cent in its profits for the third quarter when compared with figures from the same period last year.

Net income for the three months reached $4.4 billion compared with $3.6 billion recorded in 2009, statistics published by the financial service provider revealed.

The results showed that earnings per share was $1.01 compared with $0.82 seen in the three-month period the previous year.

JPMorgan benefitted from cutting the amount of capital dedicated to covering losses on retail credit cards - the figure was down to $1.42 billion compared with $3.79 billion set aside in 2009.

Jamie Dimon, chairman and chief executive officer, said: “Our third-quarter net income of $4.4 billion was the result of the good underlying performance of our businesses.”

He cited “solid earnings” for the investment bank, increases in sales for card services and “strong” production of loans as reasons for the improvements.

Commenting on regulation, Mr Dimon stated: “We will work with our regulators as they proceed with the extensive rulemaking required to implement financial reforms. We will continue to devote substantial resources to ensure regulatory reforms are implemented.”

Although JPMorgan retained its top ranking in terms of global investment banking fees, net income for the investment banking division was down by a third on figures from the same period last year.

However, Michael Holland, money manager at Holland & Co, told Reuters that he believed the bank has “set the bar extremely high” for the other major financial institutions.

By Jim Ottewill

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