The company attributed the increased net income to credit reserve releases, income tax benefit, along with high Investment Banking and management fees
JPMorgan Chase has reported a net income of $11.6bn or $3.74 per share for the third quarter (Q3) 2021, a 24% rise compared to $9.4bn or $ 2.92 per share for the same period last year.
The US-based investment bank reported a net revenue of $29.6bn for Q3 2021, an increase by 1% compared to $29.2bn for the corresponding quarter in 2020.
Its return on common equity (RoE) for the reported period was 18%, which increased from 15% for the same quarter previous year.
The company attributed the increased EPS to credit reserve releases, income tax benefit, along with high Investment Banking and management fees.
JPMorgan Chase chairman and CEO Jamie Dimon said: “JPMorgan Chase delivered strong results as the economy continues to show good growth – despite the dampening effect of the Delta variant and supply chain disruptions.
“We released credit reserves of $2.1 billion, as the economic outlook continues to improve and our scenarios have improved accordingly. As we have said before, however, we do not consider these scenario-driven releases core or recurring profits.
“These reserve calculations, while done extremely diligently and carefully, involve multiple, multi-year hypothetical probability-adjusted scenarios, which may or may not occur and which may continue to introduce quarterly volatility in our reserves.”
JPMorgan Chase Consumer and Community Banking (CCB) business reported a net income of $4.3bn for Q3 2021, a rise by 12% compared to $3.8bn for Q3 2020.
Its Corporate and Investment Bank (CIB) unit reported net income of $5.5bn for Q3 2021, a 29% increase compared to $4.3bn for the same quarter last year.
The company’s Commercial Banking (CB) arm reported net profits of $1.4bn for Q3 2021, a 30% rise compared to $1.08bn for the corresponding quarter in 2020.
JPMorgan Chase Asset and Wealth Management (AWM) unit reported a net income of $1,194 for Q3 2021, an increase by 30% compared to $1.08bn for the same period last year.