JPMorgan Posts Surprise Jump in Profit on Lower Credit Costs
- Loan-loss provisions tumble 94% back to pre-pandemic level
- Firm’s traders deliver 30% revenue gain, topping estimates
Source: Bloomberg
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JPMorgan Chase & Co., in its third quarter under the shadow of the pandemic, showed that the surge in trading is holding up -- and so are borrowers.
The biggest U.S. bank posted a surprise increase in earnings, fueled by a 30% jump in markets revenue as elevated volume kept its stock and bond traders busy. The lender also defied expectations by cutting its reserve for credit losses by $569 million, after adding $20 billion to the allowance in the first half, as charge-offs of bad loans declined from a year earlier.