(Reuters) – JPMorgan Chase & Co (N:) reported higher-than-expected quarterly profit on Friday as gains from higher interest rates and a growth in loans helped the bank offset weakness in bond trading revenue.
The largest U.S. bank by assets, whose results are often seen as a barometer of the economy, has benefited from a tax windfall and a strong economy that has led to higher interest rates and kept loan defaults in check.
Average core loans was up 6 percent in the third quarter even as higher rates crimped borrowing in areas such as mortgage loans.
Markets and investor services revenue, which includes revenue from trading bonds and stocks, was up just 1 percent, as financial markets were hit by escalating trade war between Beijing and Washington and worries about slowing global growth.
“The U.S. and the global economy continue to show strength, despite increasing economic and geopolitical uncertainties, which at some point in the future may have negative effects on the economy,” Chief Executive Officer Jamie Dimon said.
Overall, JPMorgan’s total revenue increased 5.2 percent to $27.82 billion, as the lender’s diverse business mix helped it weather the ups and downs of the trading business. All four of its four main businesses recorded a rise in revenue.
The bank’s net income rose to $8.38 billion, or $2.34 per share, from $6.73 billion, or $1.76 per share in the year ago period. Analysts had expected earnings of $2.25 per share, according to I/B/E/S data from Refinitiv.
Net interest income rose 7 percent to $14.1 billion as the U.S. Federal Reserve raised rates four times since the third quarter of last year, bringing it to 2.25 percent.
Smaller rivals Citigroup Inc (N:) and Wells Fargo (N:) are also scheduled to report quarterly results later in the day.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.