JPMorgan’s profit machine motors on

By BLOOMBERG

NEW YORK • Another dismal quarter for traders didn’t keep JPMorgan Chase & Co from posting higher revenue and a fatter profit.

The biggest US bank showed once again yesterday that it can weather a downturn in fixed-income trading by generating growth elsewhere. An increase in corporate loans, the highest lending margin in 41⁄2 years and record profit in asset management helped the lender top analysts’ estimates.

JPMorgan’s third-quarter results, which kicked off the industry’s earnings season, show that while calm and rising markets have given clients little reason to trade, the firm’s core lending and advisory businesses performed well, aided by three US Federal Reserve rate increases in the past year. Revenue at the commercial bank surged to a record, and the retail bank posted higher profit than the firm’s investment bank for the first time in more than a year.

Trading revenue tumbled 21%, steeper than the 20% forecast last month by CEO Jamie Dimon. Revenue from fixed-income trading slumped 27%, in line with analysts’ predictions. Equity-trading revenue slid 3.6%, missing estimates.

The shares dropped 0.6% to US$96.30 (RM406.39) in early trading at 7:22am in New York yesterday.

Provisions for loan losses increased 20% to US$1.45 billion from the second quarter, higher than the US$1.34 billion analysts expected.

Net interest margin, the difference between what banks charge borrowers and pay depositors, climbed to 2.37%, according to a statement. Inte- rest income rose 10% to US$13.1 billion.