viewJPMorgan Chase & Co

JP Morgan Chase struggles in low interest rate environment

It is results season for the banks, and they seem unanimous in regarding the third quarter as "challenging"

The July to September quarter was a challenging one for investment banks

JP Morgan Chase (NYSE:JPM) chief executive and chairman Jamie Dimon damned his bank's third quarter update with faint praise.

Investment bank JP Morgan Chase (NYSE:JPM) posted what Dimon described as "decent results" for the the third quarter.

The July to September quarter was a challenging one for investment banks, with global markets unsettled by signs of slowing growth in China.

JPM's net income of US$6.80bn on revenue of US$23.5bn was equivalent to US$1.68 a share, though that included a US$2.2bn tax credit.

Underlying earnings of US$1.32 per share were six cents below the market consensus.

In the same quarter of 2014, the bank had made a profit of US$4.47bn on revenue of US$25.15bn, equivalent to earnings per share of US$1.35.

The results were released after the close of trading on Tuesday, and Dimon described himself in a conference call as "pretty pleased" with trading, considering how up-and-down the markets had been, while the Fed's continued policy of sticking with rock bottom interest rates meant money managers had to sweat their assets harder.

"Bottom line: it was no easy quarter; JPM seems to have maneuvered through as well as one should have expected, still generating a 'core' ROTCE of 11.4% and 3% tangible book value growth," said Swiss rival Credit Suisse.

"Sustained share price out-performance relies on continued above average ROE generation and GSIB surcharge reductions (with a manageable revenue impact) - JPM has delivered on both," the bank concluded.

Quick facts: JPMorgan Chase & Co

Price: 103.81 USD

Market: NYSE
Market Cap: $316.43 billion

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