JPMorgan Chase & CoThe M & A division posted its best quarterly performance in history, but JPMorgan Chase & Co shares fell as consumer and business loan growth continued to face challenges.
Revenue from trading advisory services almost tripled in the third quarter, beating analysts' expectations and pushing JPMorgan Chase & Co's net profit to $11.7 billion.
"despite the impact of the epidemic and supply chain disruptions, the economy continued to grow steadily and JPMorgan Chase & Co achieved strong performance," Chief Executive Jamie Dimon said in a statement on Wednesday. Fees from investment banking rose 52 per cent, driven by a "surge in M & An activity and a strong IPO performance".
JPMorgan Chase & Co's performance report gives outsiders a glimpse into the performance of the US economy at the time of the spread of Delta, and is also a reference for the results of other Wall Street banks to be released this week.
JPMorgan Chase & Co's consumer and business loan growth remained elusive, with consumer loans falling 2 per cent and business loans falling 5 per cent at the end of the quarter. However, total loans rose 6 per cent year-on-year, driven by asset and wealth management, as well as corporate and investment banking.
Jeremy Barnum, the chief financial officer, said the lending situation was improving, but it would take some time to return to normal levels.
"given the liquidity of the system, we expect the credit card balance to return to pre-epidemic levels for some time," Barnum said on a conference call with analysts. He said the bank is optimistic about the growth prospects for its credit card balance.
The company reported commission income of $3.3 billion from its investment banking business, higher than analysts' estimates of $2.8 billion. Bond underwriting income rose to $1.04 billion and equity underwriting income rose to $1.03 billion.
The bank also cut its forecast for net credit card sales from less than 2.5 per cent to about 2 per cent.
The bank's traders generated $6.27 billion in revenue in the quarter, down from the same period last year, but higher than analysts' expectations of $5.9 billion.