Tuesday 13 October 2015 9:55 pm

JPMorgan reports third quarter profits up 22 per cent due to tax benefits

JPMorgan Chase & Co. has reported third quarter profits rising 22 per cent due to $2.2bn (£1.44bn) in tax benefits.

The company said in a statement that the quarter reflected the tax benefits "due to the resolution of tax audits and the release of deferred taxes".

Net income rose 22 per cent to $6.8bn from $5.57bn for the same period a year ago. Net income per share for the third quarter stood at $1.68 a share, rising on $1.36 a share a year ago, and beating analysts' expectations of $1.38 a share, according to a Bloomberg survey.

The bank reported revenue of $23.5bn, down six per cent from $25.1bn which the firm said was "driven by lower CIB Markets revenue including business simplification and lower mortgage banking revenue".

Jamie Dimon, chairman and chief executive, commented:

We had decent results this quarter. We saw the impact of a challenging global environment and continued low rates reflected in the wholesale businesses’ results, while the consumer businesses benefited from favourable trends and credit quality.

Overall, our risk management discipline and diversified platforms across the businesses are serving us well. We continue to focus on our commitments, optimise our balance sheet and manage our expenses.

It was hoped by banks that the Federal Reserve would start to tighten monetary policy this year, such that they could increase profits. While the Fed is holding back, JPMorgan's mortgage banking sector saw income increase 29 per cent, while consumer and business banking net income rose three per cent.

JPMorgan shares have fallen 1.5 per cent this year, but Dimon added:

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.

This week will see more banks reporting earnings, including Bank of America tomorrow and Citigroup and Goldman Sachs on Thursday. Morgan Stanley is due to announce its results next week.