The US largest bank JPMorgan Chase reported higher-than-expected earnings for the quarter after revenues from higher interest rates and credit growth supported the bank to offset weak bond revenues. The bank, which results are often seen as the barometer of the economy, has earned from the tax reform and the strong economy, that have led to higher interest rates and kept bad credit under control.
On average, the core loans increased by 6% in the third quarter, although higher interest rates restricted lending in areas such as mortgage loans.
The revenue of JPMorgan Chase from market and investor services, including bond and equity trading, rose by only 1% as financial markets were hit by the US-China trade war and fears of slowing global economic growth.
“The US and the global economy continue to show strength despite growing economic and geopolitical uncertainties that may at some point in the future have negative effects on the economy”, said the CEO of JPMorgan Chase, Jamie Dimon.
The total revenue of JPMorgan Chase rose by 5.2% to 27.82 billion USD, as the bank’s diverse business mix helped to overcome fluctuations in the trading business.
The bank’s net profit has risen to 8.38 billion USD, or 2.34 USD per share, from 6.73 billion USD, or 1.76 USD per share an year ago. The analysts expected earnings of 2.25 USD per share.
The net interest income rose by 7% to 14.1 billion USD after the Federal Reserve raised its key interest rates four times from the third quarter of last year to 2.25%.