American banking giant JPMorgan Chase has posted a net income of $6.8bn for the third quarter of 2015, an increase of 22% compared to $5.5bn in the year ago quarter.
Net revenue for the quarter was $$23.5bn, a decrease of 6% compared to $25.14bn in the third quarter of 2014. The decrease was driven by lower CIB Markets revenue including business simplification and lower Mortgage Banking revenue.
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The group’s provision for credit losses was $682bn, down 10% from $757bn a year ago due to lower net charge-offs, largely offset by lower reserve releases.
The bank’s corporate and investment banking division reported a net income $1.5bn for the third quarter of 2015, down 13% compared to $1.68bn in the year ago third quarter.
JPMorgan said that its asset management unit posted net income of $475m, a decrease of 19% from $590m in the year ago period.
The unit’s net revenue stood at $2.9bn, down 5% from $3.04bn in the year ago quarter.
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By GlobalDataNoninterest revenue at asset management division was $2.3bn, down 7%, reflecting the sale of the Retirement Planning Services business in 2014, lower transactional revenue and lower valuations of seed capital investments.
Assets under management (AuM) at the unit were $1.7 trillion, flat compared to the prior year, due to net inflows to long-term and liquidity products offset by the effect of lower market levels.
The bank’s quarterly net interest income was $11.2bn, down 1% compared to the prior year, while noninterest expense was $15.4bn, down 3%, driven by lower CIB expense related to compensation and business simplification, partially offset by higher legal expense.
Jamie Dimon, Chairman and CEO said: "We saw the impact of a challenging global environment and continued low rates reflected in the wholesale businesses’ results, while the consumer businesses benefited from favorable trends and credit quality. Overall, our risk management discipline and diversified platforms across the businesses are serving us well."
