JPMorgan Chase kicks off results season and exceeds expectations

| October 14, 2009 | 0 Comments

The US banking reporting season has got off to a flying start after JPMorgan Chase, the second-largest US bank, reported a net income of $3.6 billion (£2.5 billion) in the third quarter, compared with $527 million in the same period a year ago - exceeding analysts expectations.

The bank, which acquired Washington Mutual’s assets for $1.9 billion a year ago and also rescued Bear Stearns, made record revenues of $28.8 billion in the July to September period - an increase of 79% compared with the same period last year.

The bank repaid $25 billion of Government rescue funds in June and is the first US bank to report its results. Goldman Sachs, Citigroup and Bank of America are all due to report their results later this week.

Jamie Dimon, the bank’s chairman and chief executive, warned that the cost of credit was likely to remain high “for the foreseeable future”.

He added: “Accordingly, we have added $2 billion to our consumer credit reserves, bringing the firmwide total to $31.5 billion.”

Michael Holland, president of the fund managers Holland & Co in New York, described the performance as “stellar”.

“I don’t think you can infer from this that the financial sector is home free at this point. To the contrary, it shows one thing: JPMorgan has performed brilliantly,” added Mr Holland.

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