JP Morgan Announced Third Quarter Earnings Miss

JPMorgan Chase reported financial results for 3QFY15, after the close of trading on Tuesday, missing analysts’ expectations

JP Morgan Chase & Co. just revealed its financial results for third quarter fiscal year 2015 after the bell rings yesterday. The bank posted $1.32 in earnings per share less than consensus forecast of $1.38. EPS also displays substantial weakness when compared to earnings of $1.62 in similar quarter last year.

The net revenue for the bank came in at $23.5 billion, less than consensus forecast of $24.04 billion and 6% less than prior year quarter. This was mainly because of lower revenue from CIB markets driven by less revenue and business simplification of Mortgage Banking.

Net Income for the bank stood at $6.8 billion representing 22% year over year growth. Non-interest expense for the period was $15.4 billion down almost 3% year over year basis, mainly because of less CIB expense which was slightly balanced by more legal cost. The earnings witnessed a $2.2 billion boost from write offs and tax benefits exclusive of one item; the bank earned $1.32 per share or $5.4 billion.

The net credit losses came in at $682 million for third quarter FY15 reflecting a decrease of 10% year over year because of minor net charge offs, which was offset mostly by less reserve releases. During the period consumer reserve were $595 million showing constant enhancement in delinquencies and home prices. However, it was mostly offset by a growth of $310 million in reserves in wholesale businesses.

Jamie Dimon, Chief Executive Officer of JP Morgan Chase & Company seemed content with the financial results for the quarter, as he said, “Our position of strength allows us to make significant investments to transform the businesses we operate, deliver better experiences to our customers and clients, gain share and be positioned to be a long-term winner.”

After the earnings announcement, shareholders seemed a bit disappointed as JP Morgan stock went down

JP Morgan stock news shows that the stock is down 1.9% at $60.40.