JP Morgan reports 24% rise in profit for Q3 while revenue fails to beat expectations

--JPMorgan posted a profit of $11.69 billion, up from $9.44 billion that was reported last year

-- Revenue rose 1% to $29.65 billion

JP Morgan Chase posted its results for the third quarter on Wednesday, posting a 24% increase in profit. The investment bank beat analysts' expectations on a $1.5 billion boost from better-than-expected loan losses.

The bank pulled out $2.1 billion from its reserves this quarter. It had set aside a couple of billion dollars to prepare for a wave of bad loans that never materialized. The recent pull-out brings its total reserve down to $20.5 billion. Its stockpile was as high as $34.3 billion in 2020.

JP Morgan is the first major U.S. bank to report earnings for the third quarter setting a tone for the season.

The bank produced $3.74 per share in earnings, which includes a 52 cent per share boost from reserve releases and a 19 cent per share benefit tied to a tax filing. This is up from $2.92 per share, a year ago. JPMorgan shares dipped almost 2.7%, giving up gains in premarket trading.

JPMorgan posted a profit of $11.69 billion, up from $9.44 billion that was reported last year. Overall, its revenue rose 1% to $29.65 billion, remaining below Wall Street’s expectations, while in the corporate and investment bank, revenue rose 7%. Investment banking fees jumped 52% to $3.3 billion.

The charge-offs reported by the bank amounted to $524 million, the lowest amount to ever be reported. A charge-off means that the creditor has written the account off as a loss, and the account is closed to future charges.

Meanwhile commenting on the economy, Chief Executive Jamie Dimon said that the economy is healthy and global supply-chain constraints along with rising inflation, are temporary setbacks. He said that businesses and individuals are showing signs they are eager to spend and borrow.