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JP Morgan Chase Reports Q3 Results

Reported solid performance in asset management, commercial banking and retail banking

JPMorgan Chase has reported third-quarter 2009 net income of $3.6 billion, compared with net income of $527 million in the third quarter of 2008. Earnings per share were $0.82, compared with $0.09 in the prior year.

Investment banking division realised an increase of $1 billion in net income. In retail financial services net income was $7 million, a decrease of $57 million from the third quarter of 2008, as an increase in the provision for credit losses was largely offset by the positive impact of the Washington Mutual transaction. Card services reported a net loss of $700 million, a decline of $992 million from the third quarter of 2008, driven by a higher provision for credit losses, partially offset by higher net revenue.

In commercial banking net income was $341 million, an increase of $29 million, or 9%, from the third quarter of 2008. Retail banking reported net income of $1 billion, up by $320 million, or 44%, from the prior year. Asset management reported a net income of $430 million, an increase of $79 million, or 23%, as higher net revenue and lower noninterest expense were offset partially by a higher provision for credit losses.

Jamie Dimon, chairman and CEO of JPMorgan Chase, said: “Our net income of $3.6 billion in the quarter reflected the strong earnings power of the company, with broad-based growth across the investment bank, asset management, commercial banking and retail banking.”

“However, credit costs remain high and are expected to stay elevated for the foreseeable future in the consumer lending and card services loan portfolios. Accordingly, we have added $2 billion to our consumer credit reserves, bringing the firmwide total to $31.5 billion, or 5.3%1 of total loans. Tier 1 Common Capital, another key element of our fortress balance sheet, was also strengthened through capital generation during the quarter, to $101 billion, or 8.2%,” he added.