JPMorgan Chase reports Q3 net income of $5.6 billion

JPMorgan Chase & Co (JPM.N) reported third quarter net income of $5.6 billion, or $1.36 per share.

In the same quarter last year the company was faced with an after-tax expense of $7.2 billion to settle allegations of dishonest behavior related to mortgage instruments – before the economic crisis – and reported a loss of $380 million.

According to Thomson Reuters I/B/E/S, analysts had forecast earnings of $1.38 per share in the recent third quarter.

Chief Executive Jamie Dimon said:

“The Corporate & Investment Bank saw strong performance in fees, maintaining a #1 position in global (investment banking) fees year to date, with particular strength in equity capital markets,”

“In Markets, we saw increased activity and better performance overall, particularly in currencies and emerging markets,”

This is the first quarterly report since Dimon underwent treatment for throat cancer, something that has raised concerns about who would be appointed with the position of CEO if he has to leave.

Revenue was driven by strong performance in fixed-income, commodity, and currency trading, which rose 2.1 percent to $3.51 billion (compared to the same quarter last year).

Simon Maughan, head of research at financial analysis firm OTAS Technologies in London, said:

“Growth is modest. The headline numbers have come out slightly below expectations, but the model of stability is there, and that’s ultimately what you want from a bank,”

Higher advisory fees resulted in the bank’s investment banking revenue increasing by 2 percent up to $1.54 billion. However, income from mortgage banking dropped by 38 percent, down to $439 million.

Fewer people are refinancing their homes and as a result mortgage lending in the US has been on the decline. JPMorgan has also been moving away from making home loans to risky borrowers.

On Tuesday Citigroup Inc (C.N) and Wells Fargo & Co (WFC.N) will report for the quarter. On Wednesday Bank of America Corp (BAC.N) will report.