JPMorgan Chase & Co (NYSE:JPM) is on track for profitability again, but it didn’t earn as much as it was expected to earn. JPMorgan Chase & Co (NYSE:JPM), United States largest bank, revealed in its third quarter results that it has made a profit of 5.6 billion dollars. The profit was welcomed after a loss in the same quarter one year ago. However, Wall Street believes it could have done better.
Last year the company absorbed 9.2 billion dollars to deal with legal expenses causing it to lose 380 million dollars. The profit expectations originally were $1.38 per share. While the earnings expectations didn’t meet up with the results produced by JPMorgan Chase & Co (NYSE:JPM) in the third quarter, the revenue expectations were exceeded by the company, making 25.16 billion dollars as compared to the expected 24 billion. The bank upped its revenue by 5.4 percent from its third quarter earnings of the previous year.
The bank’s fixed income trading operations made 3.51 billion dollars, which helped the bank exceed all revenue expectations. The bank’s asset management division also made profits of 572 million in the third quarter, which was 20 percent more than the previous year. The Bank’s CEO who has been recovering from throat cancer informed the media that he will be coming back for a full schedule. He also addressed the waning European economy, saying that it won’t affect the financial growth in U.S. The CEO, in a conference call with analysts also addressed the threat of cyber crime, stating that it’s a continuous war and in war, some battles are lost and some won.
Since the attacks are getting sophisticated each year, JPMorgan Chase & Co (NYSE:JPM) is expected to invest more in their security measures. They currently spend about $250 million a year on cyber security, and employ about 1,000 people in the area. Exactly a year ago JPMorgan Chase & Co (NYSE:JPM) reported its first loss since 2004 due to $7.2 billion in litigation expenses. Overall, the bank agreed to pay over 20 billion dollars last year to settle legal issues, which accounted for a huge chunk of their losses.
JPMorgan Chase & Co (NYSE:JPM) reported its earnings ahead of the scheduled time, because of a ‘human error’ at a vendor that handles its investor relations documents. This is the first earnings report since their CEO underwent chemotherapy for throat cancer. There were questions regarding him continuing as the CEO of the bank. His statements given to the media has confirmed that he will stay as the CEO and will be back soon.
JPMorgan Chase & Co (NYSE:JPM) might have missed the bulls eye mark by a few inches but the mark of stability is still there in the company and that is what actually matters for a bank. JPMorgan Chase & Co (NYSE:JPM) has a reputation to uphold as the largest bank of United States and by the look of things, it will remain on that spot for a long time.