JPMorgan Chase profits up on solid consumer lending

[NEW YORK] JPMorgan Chase reported higher third-quarter profits Tuesday behind strength in key consumer banking businesses as Chief Executive Jamie Dimon offered a mixed economic outlook.

The biggest US bank by assets, JPMorgan reported profits of US$9.1 billion, up 8.4 per cent from the year-ago period.

Revenues were US$29.3 billion, up 7.3 per cent.

The increase in profits comes as large banks manage a shift in monetary policy by the US Federal Reserve that has dampened the industry's profit outlook somewhat.

Lower interest rates typically weigh on earnings at banks, which earn profits from the margin between their loans and deposits.

On the upside, JPMorgan scored higher revenues in home lending as mortgage costs for consumers eased. The company also reported another increase in credit cards and auto lending.

US economic growth has "slowed slightly," Mr Dimon said.

"The consumer remains healthy with growth in wages and spending, combined with strong balance sheets and low unemployment levels," Mr Dimon added.

"This is being offset by weakening business sentiment and capital expenditures mostly driven by increasingly complex geopolitical risks, including tensions in global trade."

AFP