Chase profits climb 7% on consumer biz
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.