JPMorgan profit beats estimates on M&A boom, loan growth

JPMorgan Chase & Co  reported a rise in third-quarter earnings on Wednesday that beat estimates, as the bank’s Wall Street arm capitalized on a global dealmaking boom, while its consumer bank benefited from higher interest income on loans.

The bank, whose fortunes reflect the health of the US economy, said robust M&A activity offset a slowdown in trading. Its consumer bank also reported a strong quarter as credit card spending ticked up and customers paid off loans at a slower pace, meaning the bank earned more interest income.

JPMorgan’s net income rose to $11.7 billion, or $3.74 per share, in the quarter ended Sept. 30, compared with $9.4 billion, or $2.92 per share, a year earlier.

Analysts on average had expected earnings of $3.00 per share, according to Refinitiv.

JPMorgan’s results were also helped partly after it took down further reserves that it had set aside at the height of the pandemic to cover loans that could potentially sour.