JP Morgan Chase reports $5.6 billion profit for Q3 2014

JP Morgan Chase has reported a $5.6 billion profit for Q3 2014.

The quarterly results represent a marked improvement on a year earlier, when the bank made a $380 million loss.

This was the result of setting aside billions of dollars to settle charges relating to the sale of mortgage-related investment products.

Separately, rival Citigroup posted profits of $3.44 billion and said it would exit consumer banking in 11 markets.

JP Morgan and Citigroup are the first major US banks to report third-quarter results.

Other big US banks will post their results later this week.

The JP Morgan results were due to be published at 08:30 local time, but were posted early.

They showed total revenue for the quarter of $25.2 billion, up 5% on a year earlier. Revenue at the investment banking business fell by $600 million, with profits down by 34%.

Revenue at the asset management arm grew by $250 million to $3 billion, with profits up 20%.

“Our businesses continue to perform well,” said chief executive Jamie Dimon.

“While challenges remain in the global economic recovery, the US economy is an exception, showing signs of steady improvement.

“Corporate America is in good shape, with strong balance sheets, and employment trends continue to be positive.”

Citigroup saw its profits rise 7% to $3.44bn on revenues of $19.6 billion.

The bank also said it would accelerate plans to focus on markets “where it has the greatest scale and growth potential”.

As a result, it said it would be exiting consumer banking in 11 markets – Costa Rica, Czech Republic, Egypt, El Salvador, Guam, Guatemala, Hungary, Japan, Nicaragua, Panama and Peru, as well as its consumer finance business in South Korea.

“Our consumer bank and institutional business each had solid performance during the quarter and generated stronger revenues both sequentially and year-on-year,” said the bank’s chief executive Michael Corbat.

“I am committed to simplifying our company and allocating our finite resources to where we can generate the best returns for our shareholders.”

Meanwhile, smaller rival Wells Fargo reported a $5.7 billion profit for the third quarter, up 1.7% on the same period last year.

Revenues rose 3.4% to $21.2 billion.