[1]JPMorgan Chase [1] released [2] its Q3 2017 financial results Thursday morning with reported revenue at $25.3 billion and managed revenue at $26.2 billion—well above Wall Street estimates. Bond Trading, however, was worse than projected with a 27 percent drop.
The bank reported $6.7 billion in net income, which is $1.76 a share, $0.10 over the $1.65 consensus. Mortgage banking revenue was down 17 percent to 1.6 billion for Q3, attributed to lower net servicing revenue, loan spread compression, and more moderate production margins.
“JPMorgan Chase delivered solid results in a competitive environment this quarter with steady core growth across the platform,” said Jamie Dimon, Chairman and CEO of JPMorgan Chase. “And for the first time, the Firm led the nation in total U.S. deposits, as consumers and businesses continue to view us as their partner of choice.”
Noninterest expense in consumer and community banking was $6.5 billion, which is flat compared to 2016. According to the report, the prior year included two items totaling $175 million related to liabilities from a merchant in bankruptcy and mortgage servicing reserves. If the company were to exclude those two factors, noninterest would have been up 3 percent, driven by higher auto lease depreciation and business growth, partially offset by lower marketing expense.
The provision for credit card losses, which was $1.5 billion (an increase of $223 million), was driven by higher net charge-offs, due to card, but offset by Mortgage and a higher reserve build in card.
“The global economy continues to do well and the U.S. consumer remains healthy with solid wage growth,” Dimon said. “Unfortunately, natural disasters in the U.S. and abroad have impacted many of our customers and we have responded with enormous financial support as well as the expertise and generosity of our employees to help these customers, clients and communities.”
Dimon added that JPMorgan Chase is building on its success in Detroit by announcing new initiatives in Chicago and Washington, D.C., to drive inclusive economic growth in those communities.
“We will be there to do our part,” Dimon said.