JP Morgan Earnings Top Estimates

© Reuters. JPMorgan topped profit forecasts.© Reuters. JPMorgan topped profit forecasts.

JPMorgan Chase (NYSE:) reported quarterly profit and revenue that topped analysts’ expectations Friday.

The company said it $2.34 cents per share in the third quarter. On average, analysts predicted that JP Morgan would earn $2.27 per share.

Shares of the Dow component were up about 1% in premarket trading, compared with a gain of about 2.5% before the results were released.

The bank posted managed revenue of $27.8 billion, which was above forecasts. Wall Street was looking for revenue of $27.58 billion.

Services revenue gained thanks to higher interest rates, which helped counter flat investment banking revenue. The company also benefitted from lower taxes, noting its effective tax rate was 21.6% for the quarter, compared to 29.6% in the year-ago period.

Bank stocks have been unimpressive over the last three months. The shares looked to be on a comeback as bond yields rose, helping net interest margins, but the bullishness was short-lived as financials joined the broader recent selloff.

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