Financial services giant JPMorgan Chase & Co. (JPM: Quote) reported third-quarter net loss of $0.4 billion, as against a profit of $5.71 billion in the 2012 period. On a per share basis, quarterly loss totaled $0.17, compared with a $1.40 income reported a year back. On average, 27 analysts polled by Thomson Reuters expected earnings per share of $1.19 for the quarter. Analysts' estimates typically exclude one-time items.
On a managed basis, the firm clocked revenue of $23.9 billion in the tri-monthly period, compared with the prior-year figure of $25.86 billion, with reported total net revenue dropping year-over-year to $23.12 billion, from $25.15 billion. Analysts estimated revenues of $23.94 billion for the quarter.
JPMorgan Chase said the third-quarter results included legal expense in Corporate of $9.2 billion, and a benefit from reserve releases of $1.6 billion. Excluding these items, quarterly net profit would have been $5.8 billion, or $1.42 per share, the company added.
The company's Chairman and Chief Executive commented: "While we had strong underlying performance across the businesses, unfortunately, the quarter was marred by large legal expense. We continuously evaluate our legal reserves, but in this highly charged and unpredictable environment, with escalating demands and penalties from multiple government agencies, we thought it was prudent to significantly strengthen them. While we expect our litigation costs should abate and normalize over time, they may continue to be volatile over the next several quarters."
by RTT Staff Writer
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