JPMorgan Chase Reports Third Quarter Net Profit Increase of $ 11.7 Billion
JPMorgan Chase & Co released its third quarter 2021 financial results on Wednesday and posted net income of $ 11.7 billion (£ 8.6 billion, € 10.1 billion), up 2, $ 2 billion, largely due to the release of credit reserves.
Jamie Dimon, Chairman and CEO of the Company, said in a press release that the company had released $ 2.1 billion in credit reserves, up from $ 569 million in credit reserves the year before.
The current quarter also included a tax benefit of $ 566 million related to the finalization of the company’s 2020 U.S. federal income tax return, he said.
Improved economic outlook
“We released $ 2.1 billion in credit reserves as the economic outlook continues to improve and our scenarios have improved as a result. As we’ve said before, however, we don’t view these scenario-based exits as recurring or recurring benefits, ”Dimon said.
“These reserve calculations, while carried out with extreme diligence and caution, involve multiple hypothetical, multi-year, probability-adjusted scenarios, which may or may not occur, and which may continue to introduce quarterly volatility into the future. our reserves. Our revenues – not counting the release of the net reserve and a tax benefit – were $ 9.6 billion, ”he added.
The group also said net income stood at $ 30.4 billion, up 2% – and non-interest income at $ 17.3 billion, up 3% – which was mainly due to higher investment banking fees in corporate and investment banking (CIB) and management fees in assets. & Wealth Management (AWM), which were offset by net losses in corporate investment securities versus net gains in the previous year and a decline in home lending income, he said.
“We are making significant investments, including complementary strategic acquisitions that will boost our company’s future prospects and position it to grow and prosper for decades to come. This quarter, we became the first bank to have branches in all 48 [US] States, allowing us to serve more households, businesses and communities across the country, ”Dimon said.
“We are on more than half of our plan to open 400 branches in new markets by the end of 2022, with about 30% of those branches in low to moderate income communities. ” he added in the statement.
JPMorgan Chase said it is also expanding its retail presence internationally, having recently launched its digital retail bank in the UK. “We remain committed to using our resources to deliver inclusive solutions to support our employees, customers, customers and the communities we serve,” concluded Dimon.
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