JPMorgan Chase & Co (NYSE:JPM) stock rose 3.02% (As on October 13, 11:18:43 AM UTC-4, Source: Google Finance) after the company topped analysts’ estimates for third-quarter profit and revenue as the bank generated more interest income than expected, while credit costs were lower than anticipated. The bank said profit surged 35% to $13.15 billion, from a year earlier. That per-share figure includes 17 cents in securities losses and 22 cents in legal expenses. The net interest income surged 30% to $22.9 billion, exceeding analysts’ expectations by roughly $600 million. At the same time, credit provisioning of $1.38 billion came in far lower than the $2.39 billion estimate. JPMorgan’s retail banking division saw profit surge 36% to $5.9 billion, fueled by higher net interest income and the acquisition of First Republic. Its corporate and investment bank saw profit slip 12% to $3.1 billion on declines in trading and advisory revenue.

Moreover, the provision for credit losses was $1.4 billion, reflecting net charge-offs of $1.5 billion and a net reserve release of $113 million. The net reserve release in Wholesale of $184 million was predominantly driven by the impact of net lending activity in CIB. The net reserve build in Consumer of $58 million included a net build of $301 million in Card Services, predominantly offset by a net release of $250 million in Home Lending. Net charge-offs of $1.5 billion were up $770 million, predominantly driven by Card Services. Net income attributable to First Republic was $1.1 billion in the quarter. This reflected $1.5 billion of net interest income, $761 million of noninterest revenue, including $100 million of adjustments to the estimated bargain purchase gain, $858 million of expense, and a net benefit to the provision for credit losses of $7 million

JPM in the third quarter of FY 23 has reported the adjusted earnings per share of $4.33, beating the analysts’ estimates for the adjusted earnings per share of $3.96. The company had reported the adjusted revenue growth of 21 percent to $40.69 billion in the third quarter of FY 23, beating the analysts’ estimates for revenue of $39.63 billion.

In addition, Banking & Wealth Management net revenue was $11.3 billion, up 43%, or up 30% excluding First Republic. Home Lending net revenue was $1.3 billion, up 36%, or down 2% excluding First Republic, driven by lower net interest income largely due to tighter loan spreads, predominantly offset by higher servicing and production revenue.