Holding back the love

13 October 2010 By Antony Currie Follow @AntonyMCurrie

CEO Jamie Dimon s traders outperformed, lending picked up and credit card losses improved. After exceeding the market s Q3 expectations, JPMorgan s shares should be on a tear. Instead, investors seem to be growing fearful there s more to the housing fiasco than meets the eye.

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JPMorgan reported thirdquarter net income of $4.4 billion, or $1.01 per share, on revenue of $24.3 billion. Fee income at the investment bank was, at $1.5 billion, 7 percent higher than in the second quarter.

Fixed income revenue of $3.1 billion was 12 percent lower than the previous quarter, but was actually slightly higher after netting out the effect of marking the bank's own liabilities to market.

The commercial bank reported record quarterly revenue of $1.4 billion, although net income declined 21 percent from the second quarter.

Credit card losses improved enough for the bank to release $1.5 billion from reserves. But the bank also added $1 billion pretax to reserves to cover the costs of repurchasing mortgages from Fannie Mae and Freddie Mac, and $1.3 billion to cover potential litigation costs, including mortgagerelated matters.

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