JPMorgan Chase & Co. (NYSE: JPM) stock recovers post a weak trading session

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JPMorgan Chase & Co. (NYSE: JPM) stock lost over 1.09% on 12th October 2018 (Source: Google Finance) but recovered over 0.5% on 15th October, 2018 (as of 11:21 AM GMT-4; Source: Google finance).

For the third quarter of 2018, the credit costs of $950 million were down $500 million year-on-year, driven by changes in consumer reserves. Consumer and business banking revenue up 18% on higher NII, driven by continued margin expansion and deposit growth while the Home lending revenue was down 16% as higher rates drive loan spread compression and the smaller markets pressuring production margins. In addition, net servicing revenue was down including the MSR. Deposits were down 8% year-on-year, reflecting migration into investments with us, and down 5% sequentially including seasonality. Corporate reported a net loss of $145 million. Treasury and CIO net income was up year-on-year, primarily driven by higher rates. Other corporate was a net loss of $241 million, including markdowns on certain legacy private equity investments of $220 million pretax.The firm reported net income of $8.4 billion and EPS of $2.34 on revenue of $27.8 billion with the return on tangible common equity of 17%. The Revenue of $27.8 billion was up $1.4 billion or 5% year-on-year. Net interest income increased to $945 million or 7% and the Noninterest revenue was up $425 million. Expense of $15.6 billion increased 7% year-on-year.  Credit trends remained favorable across both consumer and wholesale.

A sign outside the headquarters of JP Morgan Chase & Co in New York, September 19, 2013. REUTERS/Mike Segar

Deposits grew 4% year-on-year, continuing to outpace the industry although slower than a year ago with an increase in client investment assets of 14%. Revenue of $13.3 billion was up 10%. Consumer and business banking revenue up 18% on higher NII, driven by continued margin expansion and deposit growth while the Home lending revenue was down 16% as higher rates drive loan spread compression and the smaller markets pressuring production margins. In addition, net servicing revenue was down including the MSR. The Consumer & Community Banking (CCB) generated $4.1 billion of net income and a ROE of 31%. Core loans were up 6% year-on-year, driven by home lending up 10%, business banking up 5%, card up 4% and auto loans and leases up 3%.

The Corporate and Investment Bank CIB reported net income of $2.6 billion, and a ROE of 14% on revenue of $8.8 billion up 3%. In markets sector the Total revenue was $4.4 billion, down 2% or up 1% when adjusting for the impact of tax reform, so another good performance. As per the segment revenue the Treasury services and securities services revenue were $1.2 billion and $1.1 billion, up 12% and 5% year-on-year respectively.

 

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