JPMorgan beats third quarter forecast as trading roars back to life
By Sweta Singh and David Henry
(Reuters) - JPMorgan Chase & Co beat forecasts for revenues and profits on Friday as global bond and currency markets roared back to life in the third quarter following Britain's vote to leave the European Union.
Brexit-inspired volatility along with changing expectations for monetary policy in the United States, Europe and Japan as well as money market reforms boosted trading revenue by 21 percent for JPMorgan, the biggest U.S. bank by assets, prompting pre tax profit to jump by one-third.
JPMorgan's after tax income dropped 7.6 percent after recording a tax expense, compared with a rare tax benefit of $2.2 billion a year earlier. Both revenues and profits topped analysts' estimates.
Earnings per share fell to $1.58 from $1.68 a year ago. Analysts, on average, expected $1.39, according to Thomson Reuters I/B/E/S.
JPMorgan is the first big U.S. bank to report third-quarter results and its performance gave Wall Street a shot in the arm.
The bank's shares were up 1.6 percent at $68.84 in premarket trading while markets-focused rivals, including Goldman Sachs, Morgan Stanley and Citi also rose.
Wells Fargo & Co and Citigroup Inc, the third and fourth biggest U.S. banks by assets, also reported results on Friday. Citi earnings per share and revenues topped estimates. Wells Fargo earnings beat expectations.
Bank of America Corp, the second biggest, will report on Monday. Continued...