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On Wednesday, JPMorgan Chase kicked off the third-quarter reporting season for big American banks. Its quarterly net profit of US$3.6bn was fuelled primarily by investment banking. Indeed, JPMorgan’s credit-card unit lost US$700m in the quarter, down from a profit of US$292m a year earlier. As non-performing loans rose to US$17bn, the bank built its loan loss reserve to more than US$30bn.
The pattern of bumper investment-bank business and weak consumer-facing services was repeated in the results for other banks—namely, Citigroup and Bank of America—later in the week.
Read more at Financial Services Briefing: “Shock absorbers” (October 14th)