(Source: www.businessinsider.sg)

JPMorgan CEO Jamie Dimon speaks at a Remain in the EU campaign event attended by Britain's Chancellor of the Exchequer George Osborne (not shown) at JP Morgan's corporate centre in Bournemouth

JPMorgan CEO Jamie Dimon speaks at a Remain in the EU campaign event attended by Britain’s Chancellor of the Exchequer George Osborne (not shown) at JP Morgan’s corporate centre in Bournemouth
Thomson Reuters

JPMorgan Chase reported third-quarter earnings on Thursday, and beat Wall Street estimates.

The bank posted earnings per share of $1.76, above the $1.65 consensus, with the consumer and community banking and corporate and investment banking units topping forecasts.

The bank shrugged off a weak quarter in fixed income, with fixed income, currencies and commodities sales and trading revenue of $3.16 billion shy of the $3.18 billion that analysts were anticipating, and down sharply from the previous year. Revene from fixed income trading was down 27% versus a year ago, “driven by low volatility and tighter credit spreads, against a very strong prior year quarter,” according to the earnings release.

Wall Street banks were expected to have a difficult quarter trading as markets have been locked in a period of low volatility.

In a memo to staff, corporate and investment banking CEO Daniel Pinto said that while a lot of attention is paid to trading revenue, the corporate and investment banking unit had “a very healthy quarter.”

“While attention is often placed on comparative trading revenue, the overall CIB produced a very healthy quarter. It was one of our strongest investment banking quarters in a decade and our large transaction businesses each generated over $1 billion of steady revenue. Once again, our balanced strength across diverse businesses continues to deliver for clients and shareholders.”

Here’s a look at the key numbers:

    EPS: $1.76 versus $1.65 expected (may not compare) Revenue: $25.3 billion versus $25.6 billion expected Equity sales and trading revenue: $1.36 billion versus $1.41 billion expected Investment banking revenue: $1.71 billion versus $1.65 billion expected Net income: $6.7 billion versus $5.9 billion expected Consumer and community banking posted a 6% increase in revenue to $12 billion. Net income for the unit was up 16% at $2.6 billion. In the corporate and investment bank, banking revenues increased 5% to $3.1 billion, but markets and investor services revenue dropped 16% to $5.5 billion. Commercial banking had a record quarter for revenue, at $2.1 billion, and asset and wealth management had record net income of $674 million.

Shares of JPMorgan are trading down 0.50% immediately after the results.

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