JPMorgan smashes profit estimates

JPMorgan Chase & Co reported a bigger-than-expected 24% jump in third-quarter profit on Wednesday, boosted by a global dealmaking boom and strength in its wealth management arm.

The bank, whose fortunes reflect the health of the U.S. economy, said robust M&A activity offset a slowdown in trading.

Its consumer bank also reported a strong quarter as credit card spending ticked up and customers paid off loans at a slower pace, meaning the bank earned more interest income.

JPMorgan also released $2.1 billion from its credit reserves during the quarter.

Banks were forced to set aside billions last year for possible loan defaults during the pandemic. But a consumer-friendly monetary policy and stimulus checks buoyed spending for the average American consumer and increased their savings, allowing banks to release some of their reserve capital.

JPMorgan’s net income rose to $11.7 billion, or $3.74 per share, in the quarter ended Sept. 30, compared with $9.4 billion, or $2.92 per share, a year earlier.

Analysts on average had expected earnings of $3.00 per share, according to Refinitiv.

Net revenues in the bank’s asset and wealth management division were up 21%, boosted by higher management fees in the division that manages wealth for large institutions and individual investors.

Investment banking revenue surged 45% to $3 billion.