|Dawn Kopecki and Michael J. Moore|
Net income rose 34% to
“The housing market has turned the corner,” Dimon said in the statement. “We were encouraged that credit trends continued to modestly improve, and, as a result, the firm reduced the related loan-loss reserves by
Low interest rates have also been hurting the industry as banks earn less on the money they lend. The bank’s net interest margin, which measures profitability on loans and other interest-bearing assets, dropped to 2.43% from 2.66% a year earlier.
“Investors are using that as an excuse to take profits,” said
JPMorgan’s revenue climbed 6% to
Trading revenue, which includes fixed-income and equity- markets, was virtually unchanged at
Fixed-income trading, excluding accounting adjustments, jumped 33% to
Industrywide third-quarter equities-trading revenue probably fell 14% from the same period in 2011, according to estimates by
Trading and the investment bank’s credit portfolio declined by
Retail banking, which includes home loans and checking accounts, earned
Mortgage fees and related revenue totaled
Fewer consumers fell behind on their credit-card payments in the third quarter compared with the same period in 2011. Loans at least 30 days overdue, a signal of future write-offs, fell to 2.15% from 2.9% in 2011. Write-offs dropped to 3.57% from 4.7% the prior year and 4.35% in the previous quarter.
Industrywide, U.S. credit-card delinquencies were 2.32% in August, down from 3.04% a year earlier, according to Moody’s Investors Service.
Residential mortgage volume in the U.S. rose about 33% to
“We would expect, given the characteristics of the loans we were asked to charge off, that we will receive that value back in the form of principal payments over time,” he said.
The change forced
During the third quarter, JPMorgan’s CIO had a
The bank also changed a key risk model executives previously said may have helped fuel the loss in the
The new analysis cut the firm’s calculation of overall value-at-risk, or VaR, by
“VaR models change almost every time we talk,” Dimon said today in a call with journalists. “When we moved it to the investment bank, they adopted, particularly for the synthetic credit portfolio — and there are some other changes too — the investment bank’s model, which we think was the best one.”
The botched bets spawned management changes and dismissals, beginning with Chief Investment Officer
Two senior managers announced plans to depart last week.
Braunstein, 51, may also leave his position and join the firm’s investment bank, where he previously led dealmaking, according to a person with direct knowledge of the matter.JPMorgan’s net exposure to so-called peripheral European nations jumped to
“You should expect to see that exposure go up a little bit from here too,” he told reporters.
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