Chase prof­its climb 7% on con­sumer biz

Dayton Daily News - - BUSINESS - By Ken Sweet

JPMor­gan Chase & NEW YORK —

Co. third-quar­ter prof­its rose 7 per­cent from a year ear­lier, as the bank was able to in­crease rev­enue in its con­sumer bank­ing busi­ness even though the com­pany saw a siz­able drop in trad­ing rev­enue in the quar­ter.

The big­gest bank by de­posits and as­sets said Thurs­day that it earned a profit of $6.73 bil­lion, or $1.76 per share, com­pared with $6.29 bil­lion, or $1.58 a share, in the same pe­riod a year ear­lier. The re­sults beat an­a­lysts’ fore­cast of $1.65 a share, ac­cord­ing to Fac­tSet.

JPMor­gan’s con­sumer bank was the driver of this quar­ter’s growth, re­port­ing a 16 per­cent rise in net in­come. The bank saw higher de­posit and loan growth and higher rev­enue in its credit card di­vi­sion, which the bank has been ex­pand­ing ag­gres­sively in the past year with a new high­end credit card known as Chase Sap­phire Re­serve.

Charge-offs in that busi­ness have been creep­ing steadily higher for sev­eral quar­ters, how­ever, and the bank had to set aside an ad­di­tional $223 million to cover po­ten­tial losses. In a call with re­porters Thurs­day, Chief Fi­nan­cial Of­fi­cer Mar­i­anne Lake said the creep up in delin­quen­cies was within the bank’s ex­pec­ta­tions.

The bank was able to grow loans across the board in its con­sumer busi­ness: credit cards, busi­ness loans, auto loans and mort­gages. Along with the growth in loans, the bank ben­e­fited from a rise in in­ter­est rates. Net in­ter­est in­come rose to $16.68 bil­lion in the quar­ter, up from $14.07 bil­lion a year ear­lier. And the bank’s net in­ter­est mar­gin grew to 2.37 per­cent.

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