JPMorgan Chase and Co share price down, reports Q3 performance

JPMorgan Chase and Co released its results several hours earlier than expected on Tuesday, reporting a third-quarter profit, compared to a loss a year earlier.

The bank announced net income of $5.57 billion, or $1.36 per share, an improvement from last year, when the company was $380 million below the zero mark. Still the company did not perform as well as expected as analysts pooled by Bloomberg predicted earnings of $1.39 per share. Compared to the second quarter, earnings per share were down $0.11.

Revenue jumped 5.4% to $25.2 billion, with fixed-income trading revenue having risen 2% to $3.51 billion, overtaking the estimate from David Konrad, Macquarie Group Ltd.’s head of U.S. bank research.

The company reported a slight decline in debt underwriting and lending, however revenue from its investment and corporate bank edged up 7% thanks to improved advisory and equity underwriting business.

Retail banking revenue climbed 2%, but profits fell 9%, while asset management spiked up 9% in revenue and 20% in profits.

“Despite challenges, we have continued to deliver strong underlying performance, maintain our fortress balance sheet and liquidity, simplify the business and adapt to regulatory changes,” Jamie Dimon, JPMorans CEO, said in the statement.

The lender spent $1.47 billion on technology, communication and equipment, marking an 8% rise. Legal expenses increased to $1.1 billion in the recent quarter from $700 million in the previous one, compared to $9.3 billion a year earlier.

The biggest U.S. bank by assets also reported an increase in its common equity tier one capital ratio, up to 10.2%

JPMorgan was the first bank to release its results. Later on Tuesday reports are expected from Citigroup Inc. and Wells Fargo & Co., while Morgan Stanley, Goldman Sachs Group Inc. and Bank Of America Corp. report later this week.

JPMorgan Chase and Co fell 0.62% and closed at $58.16 on Monday in New York, marking a one-year change of +10.76%. Shares were mostly unchanged in Frankfurt trading by 10:54 GMT at 46.37 euros. The company is valued at $218.76 billion. According to the Financial Times, the 26 analysts offering 12-month price targets for JPMorgan Chase and Co have a median target of $67.00, with a high estimate of $76.00 and a low estimate of $60.00. The median estimate represents a 15.20% increase from the last price of $58.16.