New York: JPMorgan Chase & Co reported sharply higher third-quarter results, topping Wall Street expectations, as underwriting revenue at its investment bank offset deeper losses on credit cards and other consumer loans.
The second-largest US bank on Wednesday posted net income of $3.6 billion, or 82 cents a share. That compares with $527 million, or 9 cents a share, in the year-earlier quarter.
Analysts on average had forecast earnings of 52 cents a share, according to Thomson Reuters I/B/E/S.
Credit costs climbed as the bank added $2 billion to its reserves against future losses on consumer and other loans, bringing total reserves to $31.5 billion.
Loan losses jumped and the bank reported $7 billion in net charge-offs on consumer loans, up from $3.3 billion a year earlier.
“While we are seeing some initial signs of consumer credit stability, we are not yet certain that this trend will continue,” chief executive Jamie Dimon said in a statement.
The investment bank drove earnings, with net income of $1.9 billion, up from $882 million a year earlier.
A $700 million loss in JPMorgan’s card services division -- compared with a profit of $292 million a year earlier -- dragged on earnings.
JPMorgan shares were up 3.7% in premarket trading at $47.35. The shares closed at $45.66 on Tuesday on the New York Stock Exchange.