JPMorgan Chase & Co comfortably beat Wall Street estimates for third-quarter profit today as trading revenue surged past its own expectations on the back of a rebound in global financial markets.
Trading was a bright spot for the quarter, even as the pandemic decimated the US economy, with thousands of businesses shutting down and the unemployment rate soaring.
The economic fallout of the pandemic has triggered one of the worst recessions in decades.
JPMorgan also benefited as it set aside less reserve provisions, compared with the first two quarters of the year. Revenue from capital markets and investment banking also helped offset declines in its consumer business.
The bank's trading revenue jumped 30% to $6.6 billion.
The biggest US lender set aside $611m for loans that may go bad, less than the $10.5 billion it put away against future losses in the previous quarter.
The bank's net income rose to $9.44 billion, or $2.92 pershare, in the quarter ended September 30, from $9.1 billion, or $2.68 per share, a year earlier.
Analysts on average had expected earnings of $2.23 pershare, according to Refinitiv.
JPMorgan's net interest income fell 9% to $13.1 billion as the US Federal Reserve kept rates at nearly zero to offset the impact of the pandemic.
Citigroup reports later todayy, followed by Goldman Sachs Group, Wells Fargo & Co and Bank of America Corp tomorrow and Morgan Stanleyon Thursday.
