America ’s biggest bank, JPMorgan Chase, smashed Wall Street’s third-quarter earnings estimates today with a 34% rise in profits. It is the first of the big American banks to report on the quarter with all its rivals due to report next week.
Having been hit by $5.8 billion (£3.6 billion) of losses from bad bets placed on credit derivatives by the so-called London Whale Bruno Iksil during the first half, JPMorgan came back strongly in its domestic mortgage market and investment banking. The bank said it made a “modest” loss on the Whale’s portfolio in the third quarter but could see an extra $300 million of losses in the final quarter.
Chief executive Jamie Dimon said: “The firm reported strong performance across all our businesses in the third quarter. I am proud of the momentum we are seeing throughout our businesses.”
Post-tax profits jumped from $4.3 billion to $5.7 billion with earnings per share of $1.40.
“The investment bank reported favourable fixed income markets results and maintained its number one ranking for global investment banking fees,” said Dimon.
