JPMorgan net up 2.3% despite write-downs
JPMorgan Chase said on Wednesday gains from private-equity deals helped boost third-quarter net income 2.3%, offsetting some of the declines from $1.64 billion in write-downs on leveraged loans and collateralised debt obligations.
NEW YORK: JPMorgan Chase said on Wednesday gains from private-equity deals helped boost third-quarter net income 2.3%, offsetting some of the declines from $1.64 billion in write-downs on leveraged loans and collateralised debt obligations.
JPMorgan’s performance is a vindication for chairman and chief executive Jamie Dimon, who joined the bank after his career path was blocked at Citigroup, where profit plunged 57% in the third quarter amid calls for the ouster of CEO Chuck Prince.
JPMorgan, the third-largest US bank, said net income was $3.4 billion up from $3.3 billion a year earlier. JPMorgan’s investment banking profit fell 70% to $296 million, primarily because of markdowns of $1.3 billion, after fees, on leveraged lending commitments, and markdowns of $339 million on collateralised debt obligations.
JPMorgan’s third-quarter revenue climbed 3.6% to $16.1 billion, just short of the average analyst estimate of $16.2 billion. Return on equity, a gauge of how effectively the company reinvests earnings, was 11 per cent, unchanged from a year earlier. Net income climbed to $3.4 billion from $3.3 billion last year. The investment banking division’s profit plummeted 70% to $296 million.
JPMorgan’s performance is a vindication for chairman and chief executive Jamie Dimon, who joined the bank after his career path was blocked at Citigroup, where profit plunged 57% in the third quarter amid calls for the ouster of CEO Chuck Prince.
JPMorgan, the third-largest US bank, said net income was $3.4 billion up from $3.3 billion a year earlier. JPMorgan’s investment banking profit fell 70% to $296 million, primarily because of markdowns of $1.3 billion, after fees, on leveraged lending commitments, and markdowns of $339 million on collateralised debt obligations.
JPMorgan’s third-quarter revenue climbed 3.6% to $16.1 billion, just short of the average analyst estimate of $16.2 billion. Return on equity, a gauge of how effectively the company reinvests earnings, was 11 per cent, unchanged from a year earlier. Net income climbed to $3.4 billion from $3.3 billion last year. The investment banking division’s profit plummeted 70% to $296 million.
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