Summary
JPMorgan Chase & Co. reported a net income of $4.4 billion, or $1.01 per diluted share, for the third quarter of 2010. This represents an increase from $3.6 billion, or $0.82 per diluted share, in the same quarter of the prior year. The year-over-year improvement was primarily driven by a significant decrease in the provision for credit losses, which more than offset a decline in net revenue and an increase in noninterest expense. For the first nine months of 2010, net income was $12.5 billion, or $2.84 per diluted share, a substantial increase from $8.5 billion, or $1.51 per diluted share, in the first nine months of 2009. This growth was also largely attributable to a lower provision for credit losses, despite higher noninterest expenses. The company highlighted its strong capital position, ending the quarter with a Tier 1 common capital ratio of 9.5%, and maintained a robust liquidity position with a deposits-to-loans ratio of 131%. Despite these positive financial results, the company noted that net charge-offs in the mortgage and credit card portfolios remained high.
Financial Highlights
32 data points| Revenue | $23.82B |
| Interest Expense | $3.10B |
| Net Income | $4.42B |
| EPS (Basic) | $1.02 |
| EPS (Diluted) | $1.01 |
| Shares Outstanding (Basic) | 3.95B |
| Shares Outstanding (Diluted) | 3.97B |
Key Highlights
- 1Net income for Q3 2010 was $4.4 billion, up from $3.6 billion in Q3 2009.
- 2Diluted EPS for Q3 2010 was $1.01, compared to $0.82 in Q3 2009.
- 3Provision for credit losses decreased significantly year-over-year, contributing to higher net income.
- 4Tier 1 common capital ratio remained strong at 9.5%, and the deposits-to-loans ratio was 131%.
- 5Noninterest expense increased due to higher litigation expenses.
- 6Despite overall credit cost declines, mortgage and credit card net charge-offs remained high.
- 7The company resumed stock repurchases in Q2 2010 and repurchased $2.2 billion in Q3 2010.