JP Morgan Chase (JPM) Swings to Third Quarter Profit
Shares of JP Morgan Chase & Co. (JPM) were down -0.26 or -0.45 percent to $57.90 per share in premarket trading on Tuesday, after the company announced early this morning its third quarter earnings had swung back to a profit. JP Morgan Chase stock closed at $58.16 per share, down -0.36 or -0.62 percent in Monday's regular trading session.
JP Morgan Chase reported it had earned $5.57 billion or $1.36 per share in the third quarter compared with a loss of -$380 million in the same quarter one year ago. Last year's loss was in large part attributed to a $7.2 billion charge the company took in legal expenses.
Net revenue - revenue minus interest expense - came to $25.2 billion, up five percent from the same quarter last year. The analyst consensus was for the company to earn $1.38 per share, nevertheless, earnings were cut due to $1.1 billion or $0.26 per share in legal costs after taxes.
JP Morgan Chase's trading desk also saw a comeback, with fixed income trading operations increasing two percent to $3.5 billion. The trading desk also saw improvement in emerging markets and currency trading.
The earnings report was originally leaked through Shareholder.com, an investment website, and subsequently reported by Reuters and others. The earnings statement was taken down from Shareholder.com; however the figures had already been reported by a number of other websites. Earlier this month, JP Morgan Chase reported a cyberattack in the summer which compromised the accounts of seven million small businesses and 76 million households.
Jamie Dimon, Chief Executive and said in the company's press release that, "While challenges remain in the global economic recovery, the U.S. economy is an exception, showing signs of steady improvement. Corporate America is in good shape with strong balance sheets and employment trends continue to be positive. JPMorgan continued to support the economic recovery. We provided credit and raised capital1 of $1.6 trillion for our clients during the first nine months of 2014, which included $15 billion for U.S. small businesses.
He concluded saying, "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. We remain very focused on executing the control agenda and investing to protect our customers and the company for the future.
JP Morgan stock has traded in a limited range for most of the year, trading as low as $51.30 in late October of last year and making its yearly high of $61.85 just last month. News of its most recent earnings has had a tepid reception in this morning's premarket, nevertheless, the stock yields 2.7% from its $1.60 annual dividend at its current price.
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