J.P. Morgan Chase (JPM), the biggest U.S. Bank by assets, reported a 7.6% drop in quarterly profit after recording a tax expense, compared with a rare tax benefit a year earlier.
The bank’s net income fell to $6.29 billion in the third quarter ended Sept. 30 from $6.80 billion in the same quarter of 2015. Earnings per share fell to $1.58 from $1.68.
The year-earlier net profit was boosted by a tax benefit of $2.2 billion.
The Number: On a pre-tax basis, profit rose 32.8% to $8.94 billion, helped by a drop in non-interest expenses and a slight increase in revenue following the Federal Reserve’s interest rate hike last December, the first since the financial crisis.
Analysts on average had expected earnings of $1.39 per share, according to Thomson Reuters I/B/E/S. It was not immediately clear if the reported figures were comparable.
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Why It Matters: J.P. Morgan is the first big U.S. Bank to report third-quarter results. Wells Fargo (WFC) and Citigroup (C), the third and fourth-biggest U.S. Banks by assets, are scheduled to report later on Friday. Bank of America (BAC), the second biggest, will report on Monday.