JP Morgan profit misses expectations

Wall Street banking giant JP Morgan Chase reported higher profits in the three months to September but still missed analysts’ expectations.

The largest US bank by assets posted a net income of $6.8bn (£4.5bn), up from $5.5bn during the same period last year.

But it said that net revenue was $23.5bn, down from $25bn compared with the year before.

The bank also reported $1.3bn in legal costs for the period.

Banks have been under pressure to cut costs and hold more capital in reserve in case of future financial shocks.

JP Morgan also said that it received tax benefits of $2.2bn in the period.

The bank also reported that sales of its loan products had increased by 15% year-on-year, and that the balance of those loans had gone up 13%.

JP Morgan’s chief executive Jamie Dimon said in a statement: “We had decent results this quarter.

“We saw the impact of a challenging global environment… We continue to focus on our commitments, optimize our balance sheet and manage our expenses.”

In a conference call, the firm pointed to the higher cost of regulation as a factor that would “tap down profit for a while”.