Q3: JPMorgan reports loss on litigation charge

JPMorgan Chase, the biggest United States bank by assets, reported a third-quarter loss after setting up a big reserve for legal expenses.

The bank absorbed a reserve for litigation expenses of $9.2bn in the July-to-September period, pushing the lender to a loss of $380m compared with a then-record profit of $5.7 billion a year earlier.

Associated Press reported on Friday, that excluding charges, however, its adjusted earnings beat Wall Street expectations. Its shares edged up in premarket trading Friday.

Last month, JPMorgan agreed to pay $920m and admitted that it failed to oversee trading that led to a $6bn loss last year.

The lender is also said to be discussing an $11bn national settlement with the Department of Justice following an investigation into the company’s handling of mortgage-backed securities in the run-up to the recession.

The securities lost value after a bubble in the housing market burst and helped spur the financial crisis.

“We continuously evaluate our legal reserves, but in this highly charged and unpredictable environment, with escalating demands and penalties from multiple government agencies, we thought it was prudent to significantly strengthen them,” JPMorgan Chief Executive Officer, Jamie Dimon, said in a press release accompanying the earnings.

“While we expect our litigation costs should abate and normalize over time, they may continue to be volatile over the next several quarters.”

The bank posted a loss of 17 cents per share in the latest quarter, compared with net income of $1.40 per share a year earlier.

Excluding the litigation expense, it earned $5.8bn, or $1.42 a share, in the quarter. That beat analysts’ forecasts for earnings of the $1.19 a share, according to FactSet.

Revenue fell by eight per cent, to $23.9bn, missing analysts’ estimate of $24.1bn.

The company’s stock rose 60 cents to $53.12 in premarket trading about 45 minutes ahead of the market opening.

View Source
Join thousands of Nigerian who use Ngcareers to discover new vacancies that interest them, follow updates on their career areas. Go here to Start Using Ngcareers FREE

Q3: JPMorgan reports loss on litigation charge by

About ngcareers

Ngcareers is Nigeria's top jobs and careers community for working professionals and jobseekers to find interesting opportunities, discover and share insights based on their career interests. Click Here to Join. You can Connect with Ngcareers on Twitter, Google Plus, Facebook or Linkedin

Leave a Comment