Trading boom lifts JP Morgan: America’s biggest bank beats Wall street estimates
US bank JP Morgan gained from a boom in trading in financial markets
JP Morgan beat Wall Street estimates for third-quarter profit as the largest US bank gained from a boom in trading in financial markets.
The strong show bodes well for Bank of America and other large lenders reporting this week.
After taking a £8.1billion hit against future bad loans in the previous quarter, management said it was less worried about losses than it was three months ago and set aside just £471million.
Overall revenue fell to £23.1billion, but still came in ahead of analysts’ expectations.
Trading was a bright spot – up 30 per cent to £5.1billion – despite one of the worst recessions in decades. It maintained its forecast for full-year interest income at about £42.4billion.
‘On balance, a very positive start to bank earnings season,’ Oppenheimer analysts wrote.