America’s largest bank, JPMorgan Chase, announced this Wednesday that its profit reached 37,935 million dollars (about 32,800 million euros) in the first nine months of 2021, 123% more than in the same section last year, as a result of the economic improvement.
In the third quarter, the firm obtained a net profit of 11,687 million, which is 24% more than in that quarter of the previous year, while sales were 29,647 million, 1% higher. According to a statement, cumulative turnover of the New York entity rose only 2% year-on-year, up to 92,392 million.
Between July and September, JPMorgan released reserves amounting to 2.1 billion due to the improvement of the economic forecasts and possible scenarios managed by the company, which contributed to the impressive figures for the quarter. The bank “has had strong results as the economy continues to show good growth, and despite the damping effect of the delta variant and from supply chain disruptions, “said Chief Executive Officer Jamie Dimon.
The bank’s result reflects a positive impact of 1,527 million dollars (1,322 million euros) in credit risk, after the entity released 2,100 million dollars (1,818 million euros) of the capital that they were destined to face possible losses derived from credit defaults. On the other hand, a charge of 524 million was recorded for debt cancellations, according to the note.
By business areas, this last quarter highlighted asset and wealth management, whose profit shot up 36% year-on-year, to 1,200 million dollars; followed by commercial Bank (36% more, up to 1,400 million) and by the investment banking (29%, up to 5,600 million).
The company found that its Investment banking fee income increased 52%, largely thanks to the increase in merger and acquisition operations, as well as the good performance of the IPOs promoted by the firm. In contrast, revenues related to fixed debt markets fell 20%, but were offset by equities, which increased 30%.