JPMorgan’s Q3 Fails To Deliver On Expectations

JPMorgan Chase

J.P. Morgan Chase’s third-quarter revenue declined as the bank continued to fight against volatile market conditions around the world and continued low-interest rates in the United States.

Shares at the firm dropped 0.6% to $61.16 after hours.

The largest U.S. bank by assets reported a profit of $6.8 billion, or $1.68 a share. That compares with a profit of $5.57 billion, or $1.35 a share, in the same period of 2014.

Excluding $2.2 billion of tax benefits and other one-time items, earnings were $1.32 a share. Analysts were expected $1.37 a share.

Revenue also tumbled by 6.4% to $23.54 billion. Analysts had expected $23.69 billion.

Trading revenue was also down 15% to $4.34 billion from $5.07 billion in the third quarter of 2014.

Costs decreased 3% to $15.37 billion from $15.8 billion in the third quarter of last year.

JPMorgan also said its legal bills totaled $1.3 billion in the third quarter, higher than the $1.06 billion it reported during the same period of 2014.

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Return on equity which measures J.P. Morgan’s profitability, was 12% in the third quarter compared with 10% a year earlier.

Over the last quarter JPMorgan Chase continued to cut jobs, removing 1,781 positions and bringing its workforce to 235,678.

Shares at J.P. Morgan have fallen 13% since hitting a record high of $70.61 in July

Written by Peter Mondrose

Peter Mondrose

Peter Mondrose is the Editor-In-Chief at BusinessPundit. He received his degree in Economics in 1998 and a second degree in Journalism in 2004. He has served as a financial adviser, market trader, and freelance journalist for the last 11 years. When he's not investigating market conditions and reporting on workplace news, he can be found traveling with his wife, dog, and laptop. He can be reached at PeterMondrose@BusinessPundit.com or (929) 265-0240.