JPMorgan Chase has reported net
income of $3.6 billion for the third quarter, an 85 percent
year-on-year increase that has again been driven by strong
investment banking and asset management figures but hampered by
underperforming retail financial services (RFS) and card units.
Though Chase’s retail banking sub-segment
reported an 8 percent quarterly rise in net income to $1 billion,
this was offset by a $1 billion loss in the consumer lending unit.
The RFS division saw net income fall by 53 percent on the quarter
and 89 percent on the year to $7 million.
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A 60 percent annualised increase in net
interest income to $5.2 billion and a 77 percent increase in
noninterest revenue to $3.1 billion, in part arising from higher
deposit balances and higher net mortgage servicing revenue
respectively, was offset by a 94 percent increase in credit loss
provisions to $3.99 billion.
That figure represented just a 4 percent
quarterly increase, indicating that a credit loss peak may now be
imminent, said the bank.
However, Chase’s card services division, which
continued to drag down earnings with a $700 million quarterly loss,
took a $4.97 billion credit loss provision for the period – an 8
percent increase on the quarter. The card services division has now
lost over $1.9 billion during the course of 2009.
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